Violet Corporation issues 1,200 shares of $150 par value preferred stock at a price of $200 per share on December 31. It attaches a warrant to each share of stock that allows the holder to purchase one share of $20 par common stock at $50 per share. Required: Given that the portion of the proceeds attributable to the preferred stock totals $230,303 and the portion attributable to the common stock warrants totals $9,697, what joumal entry would Violet make to allocate the $240,000 ($200 x 1,200) issuance price?

Violet Corporation issues 1,200 shares of $150 par value preferred stock at a price of $200 per share on December 31. It attaches a warrant to each share of stock that allows the holder to purchase one share of $20 par common stock at $50 per share. Required: Given that the portion of the proceeds attributable to the preferred stock totals $230,303 and the portion attributable to the common stock warrants totals $9,697, what joumal entry would Violet make to allocate the $240,000 ($200 x 1,200) issuance price?

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 4RE: Sun Corporation issues 500 shares of 8 par common stock for a patent. The stock is currently selling...

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Violet Corporation issues 1,200 shares of $150 par value preferred stock at a price of $200 per share on December 31. It attaches a warrant to each share of stock that allows the holder to purchase one share of $20 par common stock at $50 per share. Required: Given that the portion of the proceeds attributable to the preferred stock totals $230,303 and the portion attributable to the common stock warrants totals $9,697, what journal entry would Violet make to allocate the $240,000 ($200 x 1,200) issuance price?