Marigold Corp. is authorized to issue 12000 shares of 6%, $100 par value preferred stock and 420000 shares of n par common stock with a stated value of $1 per share. If Marigold issues 6000 shares of preferred stock for land with an asking price of $690000 and a market value of $630000, which of the following would be the best journal entry for Marigold to record? Land Preferred Stock Paid-in Capital in Excess of Par - Preferred Land Preferred Stock Land Preferred Stock Land Preferred Stock Paid-in Capital in Excess of Par - Preferred 690000 600000 630000 630000 600000 90000 600000 630000 600000 30000

Marigold Corp. is authorized to issue 12000 shares of 6%, $100 par value preferred stock and 420000 shares of n par common stock with a stated value of $1 per share. If Marigold issues 6000 shares of preferred stock for land with an asking price of $690000 and a market value of $630000, which of the following would be the best journal entry for Marigold to record? Land Preferred Stock Paid-in Capital in Excess of Par - Preferred Land Preferred Stock Land Preferred Stock Land Preferred Stock Paid-in Capital in Excess of Par - Preferred 690000 600000 630000 630000 600000 90000 600000 630000 600000 30000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Sheffield Company is authorized to issue 8000 shares of 8%, $100 par value preferred stock and…

A: Journal entries are the primary reporting of the business transactions in the books of accounts.…

Q: uthorized; 36500 shares issued Common stock, $10 par value, 4220000 shares authorized; 120000 shares…

A: The paid in capital is the excess amount received from the issuance of shares. The paid in capital…

Q: Waterway Corporation is authorized to issue 53,000 shares of $5 par value common stock. During 2025,…

A: Journalizing is the process of recording financial transactions in a journal or ledger, helping…

Q: If Sandhill Cars issues 4900 shares of $5 par value common stock for $205800, Paid-in Capital in…

A: Common Stock represents the initial investment made by shareholders in a company, typically at a…

Q: What is the gain or loss c'est cheese would report on the sale of delivery van

A: Analysis of question :— Cash received from issuance of preferred stock is used to purchase milk…

Q: Winnie Corporation has the following capital structure at the beginning of 2023:5% Preferred stock,…

A: Stockholder's Equity includes the amount contributed by shareholders in the form of common stock,…

Q: i need the answer quickly

A: When stock was issued for land , the fair value of stock is considered as the value of the land…

Q: On January 1, 2022, Softmicro Corp was formed by issuing 10,000 shares of $5 par common stock and…

A: In accounting, journal entries are the primary method of recording financial transactions and events…

Q: If Novak Corp. issues 6000 shares of $10 par value common stock for $410000, the account Paid-in…

A: At the time of issuance of common stock, common stock will be credited and cash will be debited. If…

Q: Bonita Corporation’s December 31, 2020 balance sheet showed the following: 9% preferred stock, $10…

A: Stockholders' equity represents the difference of total assets and total liabilities of the company.…

Q: rlich Corporation is authorized to issue 20,000,000 shares of $10 par value common stock and…

A: Stockholder's Equity Stockholder equity, often known as shareholders' equity or owners' equity, is…

Q: JF Corporation issued 2M shares through an IPO reflecting 30% ownership of the firm. The other 70%…

A: IPO is initial public offering issued by the company to raise funds for the company. The company…

Q: Assume

A: To calculate the impact of the Series B investment on the ownership and value of Newco, we can first…

Q: WW Corp. resells 500 shares of its own common stock for $22 per share. WW had acquired these shares…

A: When a company issue shares in the market and due to any reasons company has the option to…

Q: Major Sports plans to raise $5,150,000 in an initial public offering of its common stock. The…

A: Contributed Capital is the amount of shares issued by the company which are directly purchased by…

Q: If Carla Vista Supply Company issues 4800 shares of $5 par value common stock for $201600, the…

A: The journal entries are prepared to record the transactions on regular basis. The cash received in…

Q: Cambridge has 500,000 shares of $3 par value common stock outstanding. The current market price of…

A: Stock dividend = 500,000 shares * 15% = 75,000 shares Current market price = $225 Value of stock…

Q: DRK, Incorporated, has just sold 80,000 shares in an initial public offering. The underwriters…

A: The total cost of the equity issue will include explicit cost and implicit cost.

Q: On November 23, 2023, the board of directors of Walker Bros Transportation Company voted to…

A: Dividend per share of preferred stock is calculated by dividing total preferred stock dividend by…

Question

Marigold Corp. is authorized to issue 12000 shares of 6%, $100 par value preferred stock and 420000 shares of no-
par common stock with a stated value of $1 per share. If Marigold issues 6000 shares of preferred stock for land
with an asking price of $690000 and a market value of $630000, which of the following would be the best journal
entry for Marigold to record?
Land
Preferred Stock
Paid-in Capital in Excess of Par -
Preferred
Land
Preferred Stock
Land
Preferred Stock
Land
Preferred Stock
Paid-in Capital in Excess of Par -
Preferred
690000
600000
630000
630000
600000
90000
600000
630000
600000
30000

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction:

VIEW

Step 2: Calculation:

VIEW

Solution

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Waterway Corporation’s December 31, 2020 balance sheet showed the following: 8% preferred stock, $20 par value, 69400 shares authorized; 49400 shares issued $ 988000 Common stock, $10 par value, 6750000 shares authorized; 6650000 shares issued, 6610000 shares outstanding 66500000 Paid-in capital in excess of par—preferred stock 125500 Paid-in capital in excess of par—common stock 54000000 Retained earnings 15350000 Treasury stock (69400 shares) 1261000 Waterway’s total paid-in capital was $122874500. $121613500. $54125500. $120352500.
Massive Corp. is authorized to Issue unlimited $0.80 no-par preferred shares and unlimited no-par common shares. There are 15,000 preferred and 45,000 common shares outstanding. In a five-year period, annual dividends pald were $2,000, $6,000, $86,000, $5,000, and $172,000, respectively. Required: Calculate the amount of dividends that would be paid to each share class for each year under the following separate cases. Where applicable, the matching dividend per common share is $1.00.
If Windsor, Inc. issues 4000 shares of $10 par value common stock for $380000, the account Paid-in Capital in Excess of Par Value will be credited for $340000. explain why this is the answer and what is the purpose of the paid-in capital in excess of par value account.
Answer both the subparts a,b.if Answered within 30mins, it would be great. Bridgeport Corporation’s charter authorized 2 million shares of $13 par value common shares, and 300,000 shares of 8% cumulative and non-participating preferred shares, with a par value of $100 per share. The corporation made the following share transactions through December 31, 2020: 300,000 common shares were issued for $4.50 million and 10,000 preferred shares were issued for machinery valued at $1,501,000. Subscriptions for 10,100 common shares have been taken, and 25% of the subscription price of $17 per share has been collected. The shares will be issued upon collection of the subscription price in full. In addition, 9,000 common shares have been repurchased for $16 and retired. The Retained Earnings balance is $240,000 before considering the transactions above. a) Prepare the shareholders’ equity section of the SFP in good form. b) Prepare the shareholders’ equity section of the statement of financial…
An investor received a term sheet from a venture capitalist, the key terms of which are summarized in the following table: Amount and Securities: 4,000,000 shares of Series A Preferred Stock. Price Per Share: $1.00 per share (the “Original Purchase Price”). Current Outstanding: 6,500,000 shares of Common Stock. In addition, the company has reserved for issuance under its stock option plan an aggregate of 1,500,000 shares of Common Stock (Reserved Shares). Liquidation Preference: In the event of any liquidation, dissolution or winding up of the Company, the proceeds shall be paid as follows: First pay 1.0 times the Original Purchase Price on each share of Series A Preferred. Thereafter, Series A Preferred participates with Common Stock pro rata on an as-converted basis. Optional Conversion: The Series A Preferred converts 1:1 to Common Stock at any time at the option of the holder. Pre-Money Valuation $8,000,000 Calculate the payoff at maturity to Series A Preferred Stock as well as…
coronado corporation has the following capital stock outstanding at december 31, 2020: 7% preferred stock, $100 par value, 15,800 shares issued and outstanding $1580000 common stock, no par, $10 stated value, 500000 shares authorized, 360000 shares issued and outstanding 3600000 the preferred stock was issued at a $130 per share. the common stock was issued at an average per share price of $14. prepare the paid-in capital section of the balance sheet at dec 31, 2020.
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
Jackson Corporation has planned Initial Public Offering Issue of 200,000,000 Ordinary shares which has par value of PKR 10/- each. The entire Issue of 200,000,000 Ordinary Shares will be offered through Book Building procedure at a Floor Price of PKR 50/- per share. Initially, 75% of the Issue i.e. 150,000,000 Ordinary Shares will be allotted to Institutions & HNWI. Remaining 25% of the Issue i.e.50,000,000 Ordinary Shares will be offered to General Public. After few weeks of successful listing with ample liquidity, Mr. Shack - HNWI has decided to sell 200,000 shares which he received through IPO of Jackson Corporation. What will be the minimum price at which Mr. Shack can liquidate this stock next day if the last day closing price of this stock is PKR 48.80/share? What will be the maximum loss if he executes complete order the same day? (Assume floor price was the strike price
Sheffield Company origînally issued 5400 shares of $10 par value common stock for $162000 ($30 per share). Sheffield subsequently purchases 530 shares of treasury stock for $26 per share and resells the 530 shares of treasury stock for $31 per share. In the entry to record the sale of the treasury stock, there will be a O credit to Paid-In Capital from Treasury Stock for $2650. debit to Paid-In Capital in Excess of Par of $15900. O credit to Common Stock for $13780. O credit to Treasury Stock for $5300. Save for Later Attempts: 0 of 1 used Submit Answer