Accounting Grouper Corporation is authorized to issue 22,000 shares of $50 par value, 10% preferred stock and 125,000 shares of $5 par value common stock. On January 1, 2022, the ledger contained the following stockholders' equity balances. During 2022, the following transactions occurred. Feb. Issued 1,900 shares of preferred stock for land having a fair value of $125,000. 1 Issued 1,000 shares of preferred stock for cash at $70 per share. Mar. 1 July Issued 17,000 shares of common stock for cash at $7 per share. 1 Sept. 1 Issued 550 shares of preferred stock for a patent. The asking price of the patent was $31,500. Market price for the preferred stock was $71 and the fair value for the patent was indeterminable. Issued 8,250 shares of common stock for cash at $7.50 per share. Dec. Net income for the year was $257,000. No dividends were declared. Dec. 31

Accounting Grouper Corporation is authorized to issue 22,000 shares of $50 par value, 10% preferred stock and 125,000 shares of $5 par value common stock. On January 1, 2022, the ledger contained the following stockholders' equity balances. During 2022, the following transactions occurred. Feb. Issued 1,900 shares of preferred stock for land having a fair value of $125,000. 1 Issued 1,000 shares of preferred stock for cash at $70 per share. Mar. 1 July Issued 17,000 shares of common stock for cash at $7 per share. 1 Sept. 1 Issued 550 shares of preferred stock for a patent. The asking price of the patent was $31,500. Market price for the preferred stock was $71 and the fair value for the patent was indeterminable. Issued 8,250 shares of common stock for cash at $7.50 per share. Dec. Net income for the year was $257,000. No dividends were declared. Dec. 31

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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