Authorized and available shares Aspin Corporation's charter authorizes issuance of 2,100,000 shares of common stock. Currently, 1,500,000 shares are outstanding, and 500,000 shares are being held as treasury stock. The firm wishes to raise $24,000,000 for a plant expansion. Discussions with its investment bankers indicate that the sale of new common stock will net the firm $30 per share. a. What is the maximum number of new shares of common stock that the firm can sell without receiving further authorization from shareholders? b. Judging by the data given and your finding in part a, do you think the firm will be able to raise the needed funds without receiving further authorization? c. What must the firm do to obtain authorization to issue more than the number of shares found in part a?

Authorized and available shares Aspin Corporation's charter authorizes issuance of 2,100,000 shares of common stock. Currently, 1,500,000 shares are outstanding, and 500,000 shares are being held as treasury stock. The firm wishes to raise $24,000,000 for a plant expansion. Discussions with its investment bankers indicate that the sale of new common stock will net the firm $30 per share. a. What is the maximum number of new shares of common stock that the firm can sell without receiving further authorization from shareholders? b. Judging by the data given and your finding in part a, do you think the firm will be able to raise the needed funds without receiving further authorization? c. What must the firm do to obtain authorization to issue more than the number of shares found in part a?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 9P: Comprehensive Young Corporation has been operating successfully for several years. It is authorized...

See similar textbooks

Similar questions

Contributed Capital Adams Companys records provide the following information on December 31, 2019: Additional information: 1. Common stock has a 5 par value, 50,000 shares are authorized, 15,000 shares have been issued and are outstanding. 2. Preferred stock has a 100 par value, 3,000 shares are authorized, 800 shares have been issued and are outstanding. Two hundred shares have been subscribed at 120 per share. The stock pays an 8% dividend, is cumulative, and is callable at 130 per share. 3. Bonds payable mature on January 1, 2023. They carry a 12% annual interest rate, payable semiannually. Required: Prepare the Contributed Capital section of the December 31, 2019, balance sheet for Adams. Include appropriate parenthetical notes.
Outstanding Stock Lars Corporation shows the following information in the stockholders equity section of its balance sheet: The par value of common stock is S5, and the total balance in the Common Stock account is $225,000. There are 13,000 shares of treasury stock. Required: What is the number of shares outstanding? Use the following information for Exercises 10-58 and 10-59: Stahl Company was incorporated as a new business on January 1, 2019. The company is authorized to issue 600,000 shares of $2 par value common stock and 80,000 shares of 6%, S20 par value, cumulative preferred stock. On January 1, 2019, the company issued 75,000 shares of common stock for $15 per share and 5,000 shares of preferred stock for $25 per share. Net income for the year ended December 31, 2019, was $500,000.
MacKenzie Mining Corporation is authorized to issue 50,000 shares of $500 par value 7% preferred stock. It is also authorized to issue 5,000,000 shares of $3 par value common stock. In its first year, the corporation has the following transactions: Journalize the transactions.
The corporate charter of Alpaca Company authorized the issuance of 10 million, $1 par common shares. During 2024, its first year of operations, Alpaca had the following transactions: January 1 sold 8 million shares at $15 per share June 3 retired 2 million shares at $18 per share December 28 sold 2 million shares at $20 per share What amount should Alpaca report as additional paid-in capital—excess of par, in its December 31, 2024, balance sheet
Aspin Corporation's charter authorizes issuance of 2,600,000 shares of common stock.Currently, 1,200,000 shares are outstanding, and 300,000 shares are being held as treasury stock. The firm wishes to raise $105,000,000 for a plant expansion. Discussions with its investment bankers indicate that the sale of new common stock will net the firm $70 per share. a. What is the maximum number of shares of common stock that the firm can sell without receiving further authorization from shareholders? b. Judging by the data given and your finding in part a,do you think the firm will be able to raise the needed funds without receiving further authorization? c. What must the firm do to obtain authorization to issue more than the number of shares found in part a?
Authorized and available shares: Aspin Corporation's charter authorizes issuance of 2,700,000 shares of common stock. Currently, 1,100,000shares are outstanding, and 400,000 shares are being held as treasury stock. The firm wishes to raise $105,000,000 for a plant expansion. Discussions with its investment bankers indicate that the sale of new common stock will net the firm $50 per share. a. What is the maximum number of shares of common stock that the firm can sell without receiving further authorization from shareholders? b. Judging by the data given and your finding in part a, do you think the firm will be able to raise the needed funds without receiving further authorization? c. What must the firm do to obtain authorization to issue more than the number of shares found in part a?
Question 1.) 10,000 non-par value share were issued at P4. The journal entry includes a credit of? A. APIC P4,000 B. Share Capital P40,000 C. Share Capital P10,000 D. Cash P40,000 Question 2.) When Marlou Corp. was formed on January 2020, the corporate charter provided for 100,000 share of P10 par Value stock. The corporation issues 9,000 shares at a price of P23 per share. The entry to record the above transaction would include a? A. credit Additional paid in capital for P117,000 B. credit Share Capital for P207,000 C. debit Share Capital for P90,000 D. debit Cash for P90,000 Question 3.) A corporation issues 2,500 shares of common stock for P45,000. The stock has stated value of P10 per share. The journal entry to record the stock issuance would include a credit to Additional Paid in Capital of? A. P45,000 B. P25.000 C. P20,000 D. P5,000 Question 4.) A corporation issues 2,500 shares of common stock for P45,000. The stock has stated value of P10 per share . The journal entry to…
Current Attempt in Progress Skysong Corporation is authorized to issue 48,000 shares of $5 par value common stock. During 2025, Skysong took part in the following selected transactions. a. b. C. d. Issued 4,600 shares of stock at $48 per share, less costs related to the issuance of the stock totaling $8,100. Issued 1,000 shares of stock for land appraised at $48,000. The stock was actively traded on a national stock exchange at approximately $49 per share on the date of issuance. Purchased 490 shares of treasury stock at $45 per share. The treasury shares purchased were issued in 2021 at $42 per share. Retired the treasury shares purchased in part (c). Prepare the journal entries to record these transactions using the cost method. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) a. No. Account…
Answer both the subparts a,b.if Answered within 30mins, it would be great. Bridgeport Corporation’s charter authorized 2 million shares of $13 par value common shares, and 300,000 shares of 8% cumulative and non-participating preferred shares, with a par value of $100 per share. The corporation made the following share transactions through December 31, 2020: 300,000 common shares were issued for $4.50 million and 10,000 preferred shares were issued for machinery valued at $1,501,000. Subscriptions for 10,100 common shares have been taken, and 25% of the subscription price of $17 per share has been collected. The shares will be issued upon collection of the subscription price in full. In addition, 9,000 common shares have been repurchased for $16 and retired. The Retained Earnings balance is $240,000 before considering the transactions above. a) Prepare the shareholders’ equity section of the SFP in good form. b) Prepare the shareholders’ equity section of the statement of financial…
A corporate charter specifies that the company may sell up to 40 million shares of stock. The company issues 32 million shares to investors and later repurchases 13.0 million shares. The number of issued shares after these transactions have been accounted for is Multiple Choice 32 million shares 20 million shares 19 million shares. 27 million shares
Required information The following information applies to the questions displayed below] Incentive Corporation was authorized to issue 12,000 shares of common stock, each with a $1 par value. During its first year, the following selected transactions were completed: a. Issued 5,400 shares of common stock for cash at $24 per share. b. Issued 1,400 shares of common stock for cash at $27 per share. 3. Prepare the stockholders' equity section as it should be reported on the year-end balance sheet. At year-end, the accounts reflected net income of $200. INCENTIVE CORPORATION Balance Sheet (Partial) At December 31 Stockholders' Equity Contributed Capital: Total Contributed Capital Total Stockholders' Equity
General Mills is authorized to issue 13 million, $1 par common shares. During 2021, its first year of operations, General Mills had the following transactions: January 1 sold 11 million shares at $18 per share. June 3 purchased 5 million shares of treasury stock at $21 per share December 28 sold the 5 million shares of treasury stock at $23 per share What amount should General Mills report as additional paid-in capital in its December 31, 2021, balance sheet? Multiple Choice O O O $203 million $187 million $197 million $155 million