10.9 Cumulative Questions
1) Journalize the following transactions for Hammers Inc.
Jan. 1, 2012Purchased a $100,000 building on a two-year 10% note payable.
The building has a useful life of twenty-five years and is depreciated
on a straight-line basis.
Feb. 15, 2012Issued 25,000 common shares at $10/share.
Jul. 10, 2012Issued 15,000 preferred shares at $7/share.
Dec. 31, 2012Record accrued interest on the note and depreciation on the machine.
2) On January 1, 2012, Aquarius Corporation had 25,000 common shares issued at $1 per share. Given the following transactions that occurred during the year, prepare the appropriate journal entries.
Apr. 1Issued 10,000 common shares for $100,000.
June 1Declared a cash dividend of $2 per share to shareholders.
June 30Paid the $2 cash dividend.
Dec. 15Declared a 10% stock dividend to shareholders of record on December 31.
At December 15, the shares were trading at $10.
3) Where is the Treasury Shares account reported on the Balance Sheet?