Bramble Beverage Company is authorized to issue 22800 shares of 7%, $100 par value preferred stock and 530000 shares of no-par common stock with a stated value of $1 per share. If Bramble issues 12000 shares of common stock to pay its recent attorney's bill of $58800 for legal services on a land access dispute, which of the following would be the journal entry for Bramble to record? Legal Expense 58800 Common Stock 58800 Legal Expense 12000 Common Stock 12000 Legal Expense 58800 Common Stock 12000 Paid-in Capital in Excess of Par - Preferred 46800 Legal Expense 58800 Common Stock 12000 Paid-in Capital in Excess of Stated Value - Common 46800

Bramble Beverage Company is authorized to issue 22800 shares of 7%, $100 par value preferred stock and 530000 shares of no-par common stock with a stated value of $1 per share. If Bramble issues 12000 shares of common stock to pay its recent attorney's bill of $58800 for legal services on a land access dispute, which of the following would be the journal entry for Bramble to record? Legal Expense 58800 Common Stock 58800 Legal Expense 12000 Common Stock 12000 Legal Expense 58800 Common Stock 12000 Paid-in Capital in Excess of Par - Preferred 46800 Legal Expense 58800 Common Stock 12000 Paid-in Capital in Excess of Stated Value - Common 46800

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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please answer in text form and in proper format answer with must explanation , calculation for each part and steps clearly
On January 1, 2022, Mojito Corporation purchased 20% (20,000 shares) of the outstanding stock of Dulcinea Corporation for $153,000. During 2022, Dulcinea Corporation paid total dividends of $45,000 and earned $80,000 in net income. At the end of 2022, Dulcinea Corporation’s stock had a fair market value of $155,000. Required: Prepare the journal entries that Mojito would make during 2022 assuming that they do NOT have significant influence over Dulcinea as a result of their stock ownership (i.e. fair value method). Prepare the journal entries that Mojito would make during 2022 assuming that they do have significant influence over Dulcinea as a result of their stock ownership (i.e. equity method).
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39
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