Bonita Inc. issues 500 shares of $10 par value common stock and 100 shares of $100 par value preferred stock for a lump sum of $124,000. (a)   Prepare the journal entry for the issuance when the market price of the common shares is $176 each and market price of the preferred is $220 each. (b)   Prepare the journal entry for the issuance when only the market price of the common stock is known and it is $218 per share.

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A: The lump sum value received for shares issued is allocated on the basis of market value.

Q: Riverbed Inc. issues 500 shares of $10 par value common stock and 100 shares of $100 par value…

A: Journal entries refer to the process of systematic documentation of the financial transactions of a…

Q: If Swifty Corporation issues 3500 shares of $10 par value common stock for $351000, the account…

A: Common stock: These are the shares issued by a company to an outsider. These shares entitle a share…

Q: Stellar Corporation issued 354 shares of $10 par value common stock and 143 shares of $50 par value…

A: A journal entry records a business transaction in the accounting system for an organization. Journal…

Q: Rodriguez Corporation issues 10,000 shares of its common stock for $82,300 cash on February 20.…

A: Common Stock is a ledgers that represents amount raised by the organization by issuing shares to the…

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A: The common shares refer to the shares issued to investors and business owners and the share is proof…

Q: journal entry to record the issuance, how much should be recorded for Paid-in Capital in Excess of…

A: Given in the question:- 500 Common Stock * $10 per share= $5000 200 Preferred Stock * $ 20 per…

Q: If the cost method is used to record treasury stock transactions, to record the sale of the 5,000…

A: Given information is: Long Co. issued 100,000 shares of  P10 par ordinary shares  for P1,200,000.…

Q: Elk Co. issues 1,000 shares of $5 par common stock for $30,000. The firm used Pilot’s Underwriting…

A: The shares can be issued for cash or non cash assets. The excess amount received for shares issued…

Q: night Corp. holds 20,000 shares of its $10 par common stock as treasury stock reacquired in Year1…

A: Treasury stock is that part of the common stock of the company that is re-purchased by the issuing…

Q: Rodriguez Corporation issues 11,000 shares of its common stock for $132,100 cash on February 20.…

A: The company can raise funds through various methods. Some of them are, by way of issuing common…

Q: Rodriguez Corporation issues 16,000 shares of its common stock for $193,600 cash on February 20.…

A: Lets understand the basics. Journal entries are those which are recorded in the books in order to…

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A: Journal Entry :— It is an act of recording transaction in books of account when transaction…

Q: Skysong Inc. issues 500 shares of $ 10 par value common stock and 100 shares of $ 100 par value…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: Llewelyn Company purchased 3,600 shares of its own $8 par value common stock when the market price…

A: To create a journal entry, you enter transaction details into ones company's books. Your journal…

Q: Rodriguez Corporation issues 15,000 shares of its common stock for $209,500 cash on February 20.…

A: If shares were issued at a premium then the difference between issue price and par value is…

Q: Swifty Inc. issues 500 shares of $10 par value common stock and 100 shares of $100 par value…

A: The journal entries are prepared to record the transactions on regular basis. Using proportional…

Q: Gallery Leather has 100,000 of $5.00 Par authorized common stock and 20,000 shares issued and…

A: Total proceeds from issue of common stock = No. of common stock issued x Issue price per share =…

Q: Maxville Company issues 300 shares of $50 par preferred stock and 1,000 shares of $10 par common…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: Splish Inc. issues 500 shares of $10 par value common stock and 100 shares of $100 par value…

A: Scenario 1: Market prices known for both common and preferred stockJournal Entry:Account Titles and…

Q: (Lump-Sum Sales of Stock with Preferred Stock) Black Diamond Inc. issues 2,500 shares of $1 par…

A: The shares are issued by bank may be of different types as common stock and preferred stock.

Q: Marigold Inc., issues 500 shares of $10 par value common stock and 100 shares of $100 par value…

A: A journal entry is a basic accounting record that is used to chronologically track financial…

Q: Maxville Company issues 350 shares of $40 par preferred stock and 1,000 shares of $5 par common…

A: The journal entries are prepared to record the transactions on regular basis. The lump sum amount…

Q: Skysong Inc. issues  500 shares of $ 10 par value common stock and  100 shares of $ 100 par value…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: Ehrlich Corporation has issued 3,000 shares of common stock and 400 shares of preferred stock for a…

A: Shareholder's fund: Shareholder's fund is the term used to describe the total amount invested by…

Q: Ivanhoe Corporation issued 341 shares of $10 par value common stock and 145 shares of $50 par value…

A: Journal entry to record the issuance:: Cash account Dr::$19188...      To Common stock…

Q: Coronado Industries has issued 1,500 shares of common stock and 300 shares of preferred stock for a…

A: The issue price of the stock could be issued at par, premium or discount. If the proceed from…

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A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: Rodriguez Corporation issues 15,000 shares of its common stock for $312,700 cash on February 20.…

A: The objective of the question is to prepare journal entries for the issuance of common stock under…

Q: Vaughn Inc. issues 500 shares of $10 par value common stock and 100 shares of $100 par value…

A: Journal entries are the primary reporting of the business transactions in the books of accounts.…

Q: If Dakota Company issues 3,200 shares of $10 par common stock for $57,600, Oa. Cash will be debited…

A: Issue of shares Issue of Shares is the process by which companies pass on new shares to…

Q: Nash Inc. issues 500 shares of $10 par value common stock and 100 shares of $100 par value preferred…

A: Common Stocks and Preferred Stocks are the form of equity issued by an organization to raise funds.…

Q: The ABC Corporation issued 25,000 shares of common for a Building with a market value of $250,000.…

A: The stock seems to be an ownership part of a company that represents a claim on its assets and…

Q: Sheridan Corporation issued 335 shares of $10 par value common stock and 103 shares of $50 par value…

A: Given information is: Common stock shares = 335 shares  Preferred Stock shares = 103 shares

Q: please fill the pictures in: Rodriguez Corporation Issues 8,000 shares of Its common stock for…

A: The journal entries are prepared to record the transactions on regular basis. The adjustment entries…

Q: Next Level Morgan Corporation issues 500 “packages” of securities for $180 per package on December…

A: Journal entry is a primary entry that records the financial transactions initially.

Q: Bramble Corp. issues 670 shares of $2 par value common stock and 280 shares of $100 par value…

A: Journal: Recording of a business transactions in a chronological order.

Q: On January 6, Dee-Light Corporation issued for cash 22,750 shares of $2 par value common stock at…

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Q: Parker Corporation has issued 2,000 shares of common stock and 400 shares of preferred stock for a…

A: Journal entry is the first stage of the accounting process.Journal entry is used to record business…

Q: If Norben Company issues 4,000 shares of $5 par value common stock for $140,000, the account Common…

A: Paid-in Capital in Excess of Par represents the amount investors pay for shares above their nominal…

Q: Lily Corporation issued 5,400 shares of stock. Prepare the entry for the issuance under the…

A: S.No.      Particulars.           Debit($)     Credit($) A).           Cash.…

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.