Denison Corporation is authorized to issue 10,000, no par value $10 convertible preferred shares and 125,000 par value common shares with a stated value of $10 per share. During 2022 the following transactions occurred: Feb. 6 Issued 1,000 preferred shares for a building having a fair market value of $125,000. The market value of the shares on this date was $120 per share. July 15 Holders of 2.000 preferred shares purchased at $110 per share converted the shares into common shares. Each preferred share was convertible into 8 common shares. Market values were preferred shares, $122, and common shares, $17. Sept. 22 Issued 4,500 common shares for land. The asking price of the land was 60,000. The market value of the common shares was $18. Oct. 30 Issued 10,000 common shares for cash at $19 per share. Dec. 1 Issued 6,000 common shares for a patent. The asking price for the patent was 60,000. The market value of the common shares was $20 per share.
Denison Corporation is authorized to issue 10,000, no par value $10 convertible preferred shares and 125,000 par value common shares with a stated value of $10 per share. During 2022 the following transactions occurred: Feb. 6 Issued 1,000 preferred shares for a building having a fair market value of $125,000. The market value of the shares on this date was $120 per share. July 15 Holders of 2.000 preferred shares purchased at $110 per share converted the shares into common shares. Each preferred share was convertible into 8 common shares. Market values were preferred shares, $122, and common shares, $17. Sept. 22 Issued 4,500 common shares for land. The asking price of the land was 60,000. The market value of the common shares was $18. Oct. 30 Issued 10,000 common shares for cash at $19 per share. Dec. 1 Issued 6,000 common shares for a patent. The asking price for the patent was 60,000. The market value of the common shares was $20 per share.
Chapter1: Financial Statements And Business Decisions
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