10 9 cumulative questions 1 journalize the following transactions for hammers inc ja 4351928

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?

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