The Ventura Corporation, a new corporation, took over the assets and liabilities of the Jeremy Ruggers Company on January 2, 2019. The assets and liabilities assumed, after appropriate revaluation by Ruggers Company, are shown below.

The Ventura Corporation is authorized to issue 100,000 shares of $10 par-value common stock and 50,000 shares of 12 percent, $50 par-value preferred stock.
Jan. 2 The corporation issued 3,000 shares of common stock and 300 shares of preferred stock at par to Ruggers for his equity in the sole proprietorship business and the corporation took over Ruggers' assets and liabilities.
2 Issued 2,500 shares of common stock to Shaundra Ferris at par value for cash.
2 Issued 800 shares of common stock and 200 shares preferred stock to Celina Delgado at par value for cash.
Required:
1. Record the transactions on page 1 of a general journal. Omit descriptions.
2. Prepare the opening balance sheet for the corporation on January 2, 2019
3. If Ventura Corporation paid $900 for legal fees, charter fee, and cost of engraving stock certificates, how would this transaction be recorded?

Question

The Ventura Corporation, a new corporation, took over the assets and liabilities of the Jeremy Ruggers Company on January 2, 2019. The assets and liabilities assumed, after appropriate revaluation by Ruggers Company, are shown below.
 
The Ventura Corporation is authorized to issue 100,000 shares of $10 par-value common stock and 50,000 shares of 12 percent, $50 par-value preferred stock.
Jan. 2 The corporation issued 3,000 shares of common stock and 300 shares of preferred stock at par to Ruggers for his equity in the sole proprietorship business and the corporation took over Ruggers' assets and liabilities.
2 Issued 2,500 shares of common stock to Shaundra Ferris at par value for cash.
2 Issued 800 shares of common stock and 200 shares preferred stock to Celina Delgado at par value for cash.
Required:
1. Record the transactions on page 1 of a general journal. Omit descriptions.
2. Prepare the opening balance sheet for the corporation on January 2, 2019
3. If Ventura Corporation paid $900 for legal fees, charter fee, and cost of engraving stock certificates, how would this transaction be recorded?

Quizplus · Accepted Answer

The Answer of The Ventura Corporation, a new corporation, took over the assets and liabilities of the Jeremy Ruggers Company on January 2, 2019. The assets and liabilities assumed, after appropriate revaluation by Ruggers Company, are shown below.
 
The Ventura Corporation is authorized to issue 100,000 shares of $10 par-value common stock and 50,000 shares of 12 percent, $50 par-value preferred stock.
Jan. 2 The corporation issued 3,000 shares of common stock and 300 shares of preferred stock at par to Ruggers for his equity in the sole proprietorship business and the corporation took over Ruggers' assets and liabilities.
2 Issued 2,500 shares of common stock to Shaundra Ferris at par value for cash.
2 Issued 800 shares of common stock and 200 shares preferred stock to Celina Delgado at par value for cash.
Required:
1. Record the transactions on page 1 of a general journal. Omit descriptions.
2. Prepare the opening balance sheet for the corporation on January 2, 2019
3. If Ventura Corporation paid $900 for legal fees, charter fee, and cost of engraving stock certificates, how would this transaction be recorded?

The Ventura Corporation, a New Corporation, Took Over the Assets