Answer
Explanation:
Common stock (17,000 shares × $7 per share) = $119,000
Paid-in capital in excess of par value, common stock ($230,000 + $379,000) – $119,000 = $490,000
Friday, 12 April 2019
Sudoku Company issues 17,000 shares of $7 par value common stock in exchange for land and a building. The land is valued at $230,000 and the building at $379,000.
Sudoku Company issues 17,000 shares of $7 par value common stock in exchange for land and a building. The land is valued at $230,000 and the building at $379,000. Prepare the journal entry to record issuance of the stock in exchange for the land and building.
Answer
Explanation:
Common stock (17,000 shares × $7 per share) = $119,000
Paid-in capital in excess of par value, common stock ($230,000 + $379,000) – $119,000 = $490,000
Answer
Explanation:
Common stock (17,000 shares × $7 per share) = $119,000
Paid-in capital in excess of par value, common stock ($230,000 + $379,000) – $119,000 = $490,000
Prepare journal entries to record the following four separate issuances of stock.
Prepare journal entries to record the following four separate issuances of stock.
1.
A corporation issued 5,000 shares of $20 par value common stock for $120,000 cash.
2.
A corporation issued 2,500 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $57,000. The stock has a $2 per share stated value.
3.
A corporation issued 2,500 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $57,000. The stock has no stated value.
4.
A corporation issued 1,250 shares of $75 par value preferred stock for $150,750 cash.
Answer
Explanation:
1.
Common Stock, $20 Par Value = 5,000 shares × $20 per share = $100,000
Paid in capital in excess of par value, common Stock = $120,000 – $100,000 = $20,000
4.
Preferred Stock, $75 Par Value = 1,250 shares × $75 per share = $93,750
Paid in capital in excess of par value, preferred Stock = $150,750 – $93,750 = $57,000
1.
A corporation issued 5,000 shares of $20 par value common stock for $120,000 cash.
2.
A corporation issued 2,500 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $57,000. The stock has a $2 per share stated value.
3.
A corporation issued 2,500 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $57,000. The stock has no stated value.
4.
A corporation issued 1,250 shares of $75 par value preferred stock for $150,750 cash.
Answer
Explanation:
1.
Common Stock, $20 Par Value = 5,000 shares × $20 per share = $100,000
Paid in capital in excess of par value, common Stock = $120,000 – $100,000 = $20,000
4.
Preferred Stock, $75 Par Value = 1,250 shares × $75 per share = $93,750
Paid in capital in excess of par value, preferred Stock = $150,750 – $93,750 = $57,000
Rodriguez Corporation issues 6,000 shares of its common stock for $117,600 cash on February 20.
Rodriguez Corporation issues 6,000 shares of its common stock for $117,600 cash on February 20. Prepare journal entries to record this event under each of the following separate situations.
|
| 1. | The stock has a $12 par value. |
| 2. | The stock has neither par nor stated value. |
| 3. | The stock has a $6 stated value. |
Answer
Explanation:
1. Common stock = 6,000 shares × $12 per share = $72,000
Paid-In Capital excess of par value, Common stock = $117,600 – $72,000 = $45,600
3. Common stock = 6,000 shares × $6 per share = $36,000
Paid-In Capital in Excess of Stated value, Common stock = $117,600 – $36,000 = $81,600
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