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ly 1, year 7, Wing al of 5,000 shares of 100 0 noncumulative preferred stock ,togethe letachable stock warrant for share of preferred stock issued. Each wa ained a right to acquire one e of wing's 10 par common stock for K15

ly 1, year 7, Wing al of 5,000 shares of 100 0 noncumulative preferred stock ,togethe letachable stock warrant for share of preferred stock issued. Each wa ained a right to acquire one e of wing's 10 par common stock for K15

FINANCIAL ACCOUNTING
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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On July 1, year 7, Wing Corporation issued for 525,000 a total of 5,000 shares of 100 par,10 noncumulative preferred stock ,together with one detachable stock warrant for each share of preferred stock issued. Each warrant contained a right to acquire one share of wing's 10 par common stock for K15 a share. The market price of the warrants on July 1, year 7, was K2.50 a warrant. On October 31,year 7,when the market price of the common stock was K 19 a share and a market price of the warrants was K3 warrant, 4,000 rights were exercised. Prepare a journey entry for Wing Corporation to record the exercised of the rights and the issuance of the common stock.
Transcribed Image Text:On July 1, year 7, Wing Corporation issued for 525,000 a total of 5,000 shares of 100 par,10 noncumulative preferred stock ,together with one detachable stock warrant for each share of preferred stock issued. Each warrant contained a right to acquire one share of wing's 10 par common stock for K15 a share. The market price of the warrants on July 1, year 7, was K2.50 a warrant. On October 31,year 7,when the market price of the common stock was K 19 a share and a market price of the warrants was K3 warrant, 4,000 rights were exercised. Prepare a journey entry for Wing Corporation to record the exercised of the rights and the issuance of the common stock.
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