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
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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F37af93f2-f1f5-4c2b-a8a1-f473f7c5f658%2F85cac6f2-7d56-4595-9548-6adbac83295c%2F6adi6jn_processed.jpeg&w=3840&q=75)
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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