Example: Cinco Mayo Corporation issued 250 shares of $20 par value common stock and 100 shares of $50 par value preferred stock for a lump sum of $20,000. Common stock has a market value of $30.00 per share, and preferred stock has a market value of $95 per share. Number Amount Total Percent Common shares Preferred shares Fair Market Value 100% Allocation Common Preferred Issue Price Allocation % Total

Example: Cinco Mayo Corporation issued 250 shares of $20 par value common stock and 100 shares of $50 par value preferred stock for a lump sum of $20,000. Common stock has a market value of $30.00 per share, and preferred stock has a market value of $95 per share. Number Amount Total Percent Common shares Preferred shares Fair Market Value 100% Allocation Common Preferred Issue Price Allocation % Total

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

On June 30, 2020, when ABC shares were selling for $ 65 each, the equity accounts had the following balances: Common shares (par value $ 50: 50,000 issued) $ 2,500,000 Capital contributed in excess of par value 600,000 Retained earnings 4,200,000 A 100% share dividend is declared and distributed, the balance of the Common Shares account after recording the dividend will be: a. $2,500,000 b. $7,300,000 c. $3,100,000 d. $5,000,000
Lance corporation has the following shareholders equity accounts Preference share 10%, par 50 issued and outstanding 10,000 shares 500,000 Ordinary share, 80 par issued and outstanding 50,000 shares 4,000,000 Retained earnings 1,500,000 The company did not declare dividend for 3 years, but for the current year 1M cash dividend was declared and paid. If the preference shares are cumulative and participating how much would be the earning per share of each type of stock Sample answer: Preference30;Ordinary25
ABC Company issued 10,000 common stocks with a par value of $5 and a fair value of $25 per share along with 15,000 preferred stocks with a par value of $15 and a fair value of $20 per share. Both shares were issued for a total (lump sum) of $530,000. How much of the $530,000 should be allocated to common stock? a. $250,000 b. $289,091 c. $240,909
PLEASE HELP ME
on January 1, 2021 Tonge Industries had outstanding 540,000 common shares ($1 par) that originalky sold for $30 per share, 3,000 shares of 10%
Conversion of Preferred Stock into Common Stock Smith & Sons, Inc., has 20,000 shares of $100 par value, six percent preferred stock and 80,000 shares of $0.50 par value common stock outstanding. The preferred stock is convertible into the company's common stock at a conversion rate of 1-to-20; that is, each share of preferred stock is convertible into 20 shares of common stock. The preferred stock had been sold for its par value when issued. Prepare the journal entry to record the conversion of all of the company's preferred stock into common stock. General Journal Ref. a Preferred Stock Description Debit + $ 2,000,000 $ + Common Stock Additional Paid-in-Capital in excess of par value. To record conversion of preferred stock to common stock. 0 0 Credit
Dividends per share Windborn Company has 10,000 shares of cumulative preferred 1% stock, $50 par and 50,000 shares of $20 par common stock. The following amounts were distributed as dividends: 20Y1 20Y2 20Y3 Determine the dividends per share for preferred and common stock for each year. Round all answers to two decimal places. If an answer is zero, enter '0'. Preferred Stock Common Stock (dividends per share) (dividends per share) 0. X 20Y1 20Y2 20Y3 Feedback $7,500 4,000 15,000 Check My Work 0.50 0.40 0.60 0.00 0.18 m
Ravonette Corporation issued 300 shares of $10 par value common stock and 100 shares of $50 par value preferred stock for a lump sum of $13,500 The common stock has a market price of $20 per share, and the preferred stock has a market price of S90 per share. Prepare the jourmal entry to record the issuance of the common stock S3 000 O Cash Common Stock $3.000 O Cash Common Stock O Cash Common Stock Additional Paid-n Capital C/S None of the above S6 000 $6 000 $5 400 $3.000 $2 400