HOMEWORK -
Please submit in Excel and answer each question on a separate tab.
Q1. Meca Corporation began operations on Jan. 1, 2014. Meca's articles of incorporation authorized 5 million shares of $1 par value common stock and 1 million shares of $60 par value preferred stock. Meca Corporation had the following transactions:
Mar. 15 Sold 2 million common shares for $10 per share.
Mar. 24 Issued 50,000 common shares to attorneys in exchange for legal services valued at $75,000.
Apr. 4 Sold 10,000 preferred shares for $850,000.
Prepare the appropriate journal entries to record each transaction.
Q2. On March 1, 2015, Coach Inc. announced that its Board of Directors declared a regular quarterly dividend of $0.35 per share. The dividend is payable March 23, 2015 to stockholders of record on Feb. 15, 2015.
Prepare the journal entry to Coach Inc. recorded for the declaration and the payment of the cash dividend for its 2 millions shares.
Q3. Williams Pharmaceuticals issued 150 million shares of its $1 par common stock at $15 per share in 2014. They had the following transactions during 2014:
Jun. 27 Williams Pharmaceuticals reacquired 10 million shares at $20 per share.
Nov. 5 Williams Pharmaceuticals sold 2 million shares $21 per share.
Prepare the appropriate journal entries to record each transaction.