abc has issued 3,000 shares of common stock and 400 shares of preferred stock for a lump sum of $80,000 cash. Instructions Give the entry for the issuance assuming the par value of the common stock was $5 and the fair value $32, and the par value of the preferred stock was $20 and the fair value $50. Give the entry for tike issuance assuming the same facts as (a) above except the preferred stock has no ready market and the common stock has a fair value of $22 per share.

abc has issued 3,000 shares of common stock and 400 shares of preferred stock for a lump sum of $80,000 cash. Instructions Give the entry for the issuance assuming the par value of the common stock was $5 and the fair value $32, and the par value of the preferred stock was $20 and the fair value $50. Give the entry for tike issuance assuming the same facts as (a) above except the preferred stock has no ready market and the common stock has a fair value of $22 per share.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Parker Corporation has issued 2,000 shares of common stock and 400 shares of preferred stock for a lump sum of $72,000 cash.Instructions:(a) Give the entry for the issuance, assuming the par value of the common was $5 and the market value $30, and the par value of the preferred was $40 and the market value $50. (Each valuation is on a per-share basis and there are ready markets for each stock.)(b) Give the entry for the issuance assuming the same facts as (a) above except the preferred stock has no ready market value, and the common stock has a market value of $25 per share.
Caswell Corporation is authorized to issue 10,000 shares of common stock on December 31. It sells 8,000 shares at $16 per share. Required: Record the sale of the common stock, given the following independent assumptions: 3. The stock has no-par and no stated value.
Ellis Company has 2,000,000 shares of ordinary stock authorized with a par value of P3 per share of which 600,000 shares are outstanding. Ellis authorized a stock dividend when the market value was P8 per share, entitling its stockholders to one additional share for each share held. The par value of the stock was not changed. Assuming the declaration is not recorded separately, what entry, if any, should Ellis make to record distribution of the stock dividend? a. Retained Earnings............... 4,800,000; Ordinary Stock.................. 1,800,000 Share premium from Stock Dividends 3,000,000 b. Retained Earnings............... 4,800,000; Ordinary Stock.................. 1,800,000 Gain on Stock Dividends....... 3,000,000 c. Memorandum entry noting the number of additional shares issued as a dividend d. Retained Earnings............... 3,000,000; Ordinary Stock.................. 3,000,000
Pharoah Inc. issued 12900 shares of no-par common stock with a stated value of $5 per share. The market price of the stock on the date of issuance was $15 per share. The entry to record this transaction includes a O credit to Common Stock for $64500. O debit to Paid-in Capital in Excess of Par for $193500. O debit to Cash for $64500. O credit to Common Stock for $193500. eTextbook and Media
Prepare journal entries to record each of the following four separate issuances of stock.
April, Inc. issued 7,000 shares of preferred stock for $448,000. The stock has a par value of $64 per share. The journal entry to record this transaction would O credit Cash $448,000 and debit Preferred Stock-$64 Par Value $448,000 O credit Cash $448,000, debit Preferred Stock-$64 Par Value $7,000, and debit Paid-In Capital in Excess of Par-Preferred $441,000 O debit Cash $448,000 and credit Preferred Stock-$64 Par Value $448,000 O debit Cash $448,000, credit Preferred Stock-$64 Par Value $7,000, and credit Paid-In Capital in Excess of Par-Preferred $441,000
Mercury Corporation issued 6,500 shares of no-par common stock for $25 per share. Mercury also issued 3,200 shares of $25 par, 6 percent noncumulative preferred stock at $35 per share. a. Required Record these events in a horizontal statements model. b. Prepare journal entries to record these transactions.
PARRISH 4-4 ADJUSTING ENTRIES Please post these accordingly. If no entry is needed please right NONE. This should be in a general journal format with the following columns: Date, Description, Post Ref., Debit, and Credit a) The company has received a bill for utilities for the month in the amount of $1750. This bill will be paid next month. b) Interest on a loan at the bank is due as of November 1. We borrowed the $5000 three months ago at 6% annual interest c) A customer paid us $600 in advance for merchandise to be shipped ot him. At the time the check was received, the Unearned Revenue account was credited. The shipping clerk tells us that one-third of the merchandise has been shipped and received by the customer. d) Depreciation on the trucks was recorded a year ago. The trucks cost $75000, have a $5000 salvage value and are estimated to last for seven years. e) The Prepaid Advertising account has a balance of $2300. Of this amount, we have used $950 this month.
Please filled the blanks after calculation. A. Issued ____shares of class A common stock. Stock has par value of ___ per share and was issued at $____ per share. # of shares issued 20% of authorized shares Par value $ 30.00 Issue Price $40.00 B. Issued _____ shares of no-par class B stock # of shares issued 20% of authorized shares Issue Price $ 38.00 C. Issued _______ shares of preferred stock at par value. # of shares issued 40% of authorized shares Par Value $ 110.00
Prepare the appropriate general journal entries for the following treasury stock transactions of Aberdeen Inc. Oct. 15 Purchased 7,000 shares of its $15 par common stock for $70,000 and placed the stock in the treasury. Dec. 1 Sold 2,000 shares of the treasury stock for $18,000 cash. Dec. 31 Sold the remaining treasury stock for $56,000 cash.
Prior to June 30, a company has never had any treasury stock transactions. The company repurchased 100 shares of its $1 par common stock on June 30 for $40 per share. On July 20, it reissued 50 of these shares at $46 per share. On August 1, it reissued 20 of the shares at $38 per share. What is the journal entry necessary to record the repurchase of stock on June 30? Mutiple Choice Debit Common Stock $4,000; credit Cash $4,000. Debit Common Stock $100; debit Treasury Stock $3,900; credit Cash $4,000. Debit Treasury Stock $3,900; debit Paid-in Capital, Treasury Stock $100; credit Cash $4,000. Debit Treasury Stock, Common $4,000; credit Cash $4,000. Debit Cash $4,000; credit Treasury Stock $4,000.
Shamrock Inc. issues 500 shares of $10 par value common stock and 100 shares of $100 par value preferred stock for a lump sum of $114,000. (a) Prepare the journal entry for the issuance when the market price of the common shares is $176 each and market price of the preferred is $220 each. (b) Prepare the journal entry for the issuance when only the market price of the common stock is known and it is $198 per share.