Journalize the Following Transactions for Hammers Inc

question 41

Essay

Journalize the following transactions for Hammers Inc.
Jan. 1, 2012 Purchased 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, 2012 Issued 25,000 common shares at $10/share.
Jul. 10, 2012 Issued 15,000 preferred shares at $7/share.
Dec. 31, 2012 Record accrued interest on the note and depreciation on the machine.

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Definitions:

State Charter

is an official authorization for the creation and operation of a corporation, bank, or other organization within a specific state.

Shares Outstanding

The total number of a company's shares that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s insiders.

Reacquired

Refers to assets, such as stock or securities, that have been bought back by the corporation or entity that initially issued them.

Shares Outstanding

The total number of shares of stock that have been issued and are currently held by shareholders, including both public investors and restricted company insiders.