CPA FAR Journal Entries questions
and answers
Corp authorizes $10 par c/s, issue single share for $13 - Answerdebit cash 13
credit c/s 10
credit apic-c/s 3
Corp repurchases and retires for $12 per share share authorized $10 par c/s, and issued for $13
(repurchase is less than issue price) - Answerdebit c/s 10
debit apic-c/s 3
credit apic-retired stock 1
credit cash 12
Corp repurchases and retires for $15 per share share authorized $10 par c/s, and issued for $13
(repurchase is more than issue price) - Answerdebit c/s 10
debit apic-c/s 3
debit retained earnings 2
credit cash 15
client plans to issue $10 par c/s at $30/share. Offers subscription requiring $3 down payment. to
take out subscription: - Answerdebit cash 3
debit subscription rec. 27
credit c/s subscribed 10
credit apic c/s 20
client plans to issue $10 par c/s at $30/share. Offers subscription requiring $3 down payment. When
balance is paid and stock is issued: - Answerdebit cash 27
debit c/s subscribed 10
credit subscriptions rec 27
credit c/s 10
client plans to issue $10 par c/s at $30/share. Offers subscription requiring $3 down payment.
Company does not issue stock and investor is entitled to refund: - Answerdebit c/s subscribed 10
, debit apic-c/s 20
credit cash 3
credit subscriptions rec 27
client plans to issue $10 par c/s at $30/share. Offers subscription requiring $3 down payment.
Investor breaches contract and does not purchase shares when available, down payment is kept by
client: - Answerdebit c/s subscribed 10
debit apic c/s 20
credit apic forfeited subs 3
credit subscript rec 27
if shareholder donates stock back to corp (use FMV shares): - Answerdebit t/s
credit apic t/s
issue 20000 shares of $5 par c/s @ $25/share. Issue using cost method (same as par method for
issuance): - Answerdebit cash 500,000 (20000x$25 issue price)
credit c/s 100,000 (20000x$5 par)
credit apic c/s 400,000
issue 20000 shares of $5 par c/s @ $25/share. Issue using par value (legal) method (same as cost
method for issuance): - Answerdebit cash 500,000 (20000x$25 issue price)
credit c/s 100,000 (20000x$5 par)
credit apic c/s 400,000
issue 20000 shares of
$5 par c/s
@ $25/share.
Repurchase 2000 shares @ $19 using cost method - Answerdebit t/s 38000
credit cash 38000
issue 20000 shares of
$5 par c/s
and answers
Corp authorizes $10 par c/s, issue single share for $13 - Answerdebit cash 13
credit c/s 10
credit apic-c/s 3
Corp repurchases and retires for $12 per share share authorized $10 par c/s, and issued for $13
(repurchase is less than issue price) - Answerdebit c/s 10
debit apic-c/s 3
credit apic-retired stock 1
credit cash 12
Corp repurchases and retires for $15 per share share authorized $10 par c/s, and issued for $13
(repurchase is more than issue price) - Answerdebit c/s 10
debit apic-c/s 3
debit retained earnings 2
credit cash 15
client plans to issue $10 par c/s at $30/share. Offers subscription requiring $3 down payment. to
take out subscription: - Answerdebit cash 3
debit subscription rec. 27
credit c/s subscribed 10
credit apic c/s 20
client plans to issue $10 par c/s at $30/share. Offers subscription requiring $3 down payment. When
balance is paid and stock is issued: - Answerdebit cash 27
debit c/s subscribed 10
credit subscriptions rec 27
credit c/s 10
client plans to issue $10 par c/s at $30/share. Offers subscription requiring $3 down payment.
Company does not issue stock and investor is entitled to refund: - Answerdebit c/s subscribed 10
, debit apic-c/s 20
credit cash 3
credit subscriptions rec 27
client plans to issue $10 par c/s at $30/share. Offers subscription requiring $3 down payment.
Investor breaches contract and does not purchase shares when available, down payment is kept by
client: - Answerdebit c/s subscribed 10
debit apic c/s 20
credit apic forfeited subs 3
credit subscript rec 27
if shareholder donates stock back to corp (use FMV shares): - Answerdebit t/s
credit apic t/s
issue 20000 shares of $5 par c/s @ $25/share. Issue using cost method (same as par method for
issuance): - Answerdebit cash 500,000 (20000x$25 issue price)
credit c/s 100,000 (20000x$5 par)
credit apic c/s 400,000
issue 20000 shares of $5 par c/s @ $25/share. Issue using par value (legal) method (same as cost
method for issuance): - Answerdebit cash 500,000 (20000x$25 issue price)
credit c/s 100,000 (20000x$5 par)
credit apic c/s 400,000
issue 20000 shares of
$5 par c/s
@ $25/share.
Repurchase 2000 shares @ $19 using cost method - Answerdebit t/s 38000
credit cash 38000
issue 20000 shares of
$5 par c/s
