Problem 3. In 2013 Bill Barnes and several friends organized a corporation called Barnes Communications, Inc. The corporation was authorized to issue 500 000 shares of $10 par value, 6% cumulative preferred stock and 4000 000 shares of $7 par value common stock and issued 120 000 preferred shares and 1000 000 common shares at the beginning of 2013 at par value. The following transactions (among others) occurred during the 2014: Jan 6 Issued for cash 200 000 shares of common stock at $18 per share. The shares were issued to Barnes and 10 other investors. Jan.7 Issued an additional 300 shares of common stock to Barnes exchange for his services in organizing a corporation. The stockholders agreed that these services were worth $7 000. Jan.12 Issued 25 000 shares of preferred stock for cash of $300 000 June 4 Acquired land as a building site in exchange for 150 000 shares of common stock. In view of the appraised value of the land and the progress of the company, the directors agreed that the common stocks was to be valued for purposes of this transaction at $15 per share. Aug. 8 The corporation purchased back 100 000 of its common shares from market at $13 per share.
Problem 3. In 2013 Bill Barnes and several friends organized a corporation called Barnes Communications, Inc. The corporation was authorized to issue 500 000 shares of $10 par value, 6% cumulative preferred stock and 4000 000 shares of $7 par value common stock and issued 120 000 preferred shares and 1000 000 common shares at the beginning of 2013 at par value. The following transactions (among others) occurred during the 2014: Jan 6 Issued for cash 200 000 shares of common stock at $18 per share. The shares were issued to Barnes and 10 other investors. Jan.7 Issued an additional 300 shares of common stock to Barnes exchange for his services in organizing a corporation. The stockholders agreed that these services were worth $7 000. Jan.12 Issued 25 000 shares of preferred stock for cash of $300 000 June 4 Acquired land as a building site in exchange for 150 000 shares of common stock. In view of the appraised value of the land and the progress of the company, the directors agreed that the common stocks was to be valued for purposes of this transaction at $15 per share. Aug. 8 The corporation purchased back 100 000 of its common shares from market at $13 per share.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter10: Stockholder's Equity
Section: Chapter Questions
Problem 57E: Outstanding Stock Lars Corporation shows the following information in the stockholders equity...
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