Q1) Horner Corporation is authorized to issue 1,000,000 shares of $5 par value common stock. In 2010, its first year of operation, company has stock transactions which is given below:
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Jan. 1
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Paid the state $2,000 for incorporation fees.
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Jan. 15
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Issued 500,000 shares of stock at $6 per share.
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Jan. 30
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Attorneys for the company accepted 500 shares of common stock as payment for legal services rendered in helping the company incorporate. The legal services are estimated to have a value of $7,000.
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July 2
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Issued 100,000 shares of stock for land. The land had an asking price of $900,000. The stock is currently selling on a national exchange at $8 per share.
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Sept. 5
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Purchased 15,000 shares of common stock for the treasury at $9 per share.
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Dec. 6
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Sold 11,000 shares of the treasury stock at $11 per share.
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i) Journalize transactions for Horner Corporation.
Q2) Dailey Company at December 31 has cash $40,000, noncash assets $200,000, liabilities $110,000, and following capital balances: Dickinson $90,000 and Meierhoff $40,000. Firm is liquidated, and $240,000 in cash is got for noncash assets. Dickinson and Meierhoff income ratios are 60% and 40%, respectively.
ii) Make a cash distribution schedule.