Exercises 1. Newhart Corporation issues 20,000 shares of common stock for a total price of $300,000 on January 3, 1989. Prepare the required journal entry under each of the following independent assumptions: (a) The common stock has a par value of $15 per share. (b) The common stock has a par value of $10 per share. (c) The common stock has a par value of $20 per share. (d) The common stock is true no-par stock without a stated value. (e) The common stock is no par stock with a stated value of $10 per share. Date GENERAL JOURNAL Post. Account Titles and Explanations Debit Credit Ref.

Exercises 1. Newhart Corporation issues 20,000 shares of common stock for a total price of $300,000 on January 3, 1989. Prepare the required journal entry under each of the following independent assumptions: (a) The common stock has a par value of $15 per share. (b) The common stock has a par value of $10 per share. (c) The common stock has a par value of $20 per share. (d) The common stock is true no-par stock without a stated value. (e) The common stock is no par stock with a stated value of $10 per share. Date GENERAL JOURNAL Post. Account Titles and Explanations Debit Credit Ref.

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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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.
To expand operations, Aragon Consulting issued 1,000 shares of previously unissued common stock with a par value of $1. The price for the stock was $50 per share. Required: 1-a. Complete the table below, indicating the account, amount, and direction of the effect for the stock issuance. 1-b. Prepare the journal entry for the stock issuance. 2-a. Complete the table below, indicating the account, amount, and direction of the effect for the stock issuance with a par value of $2. 2-b. Prepare the journal entry for the stock issuance, if the par value were $2 per share.
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