1,000,000 shares of common stock at $2 par 80,000 6% Preferred shares at $100 per share Issoed 300,000 shares of common stock for cash at $8 per share. Purchased a building by issuing 10,000 shares of $2 par value common stock at the current market price of $10 per share. Issued common stock at a market price of $8 per share for the payment of incorporation expenses and legal fees amounting to $20,000 Issued 20,000 shares of 6% Preferred stock at a current market price of $105 per share. 2. 6. 8. 10. Sept. 18. Paid a cash dividend on common stock @ $2 per share outstanding and the preference dividend due. The dividend is paid out of current year's net intome.
1,000,000 shares of common stock at $2 par 80,000 6% Preferred shares at $100 per share Issoed 300,000 shares of common stock for cash at $8 per share. Purchased a building by issuing 10,000 shares of $2 par value common stock at the current market price of $10 per share. Issued common stock at a market price of $8 per share for the payment of incorporation expenses and legal fees amounting to $20,000 Issued 20,000 shares of 6% Preferred stock at a current market price of $105 per share. 2. 6. 8. 10. Sept. 18. Paid a cash dividend on common stock @ $2 per share outstanding and the preference dividend due. The dividend is paid out of current year's net intome.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:ACCA 205 PRACTICE QUESTION ISSUE OF SHARES
The Star Traders Co, was formed with a total capital made up as follows:
1,000,000 shares of common stock at $2 par
80,000 6% Preferred shares at $100 per share
Issued 300,000 shares of common stock for cash at $8 per share.
Purchased a building by issuing 10,000 shares of $2 par value common stock at the current
market price of $10 per share.
Issued common stock at a market price of $8 per share for the payment of incorporation
expenses and legal fees amounting to $20,000
Issued 20,000 shares of 6% Preferred stock at a current market price of $105 per share.
Jan 1.
2.
6.
8.
10.
Sept. 18.
Paid a cash dividend on common stock @ $2 per share outstanding and the preference dividend
due. The dividend is paid out of current year's net intome.
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