Novak Inc. issues 500 shares of $10 par value common stock and 100 shares of $100 par value preferredstock for a lump sum of $125,000.a.b.Prepare the journal entry for the issuance when the market price of the common shares is $181 eachand market price of the preferred is $226 each.Prepare the journal entry for the issuance when only the market price of the common stock is knownand it is $220 per share.

Long-term investment choices are frequently made by organizations when starting new initiatives,…

Answered: Novak Inc. issues 500 shares of $10 par…

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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Maxville Company issues 350 shares of $40 par preferred stock and 1,000 shares of $5 par common stock in a “package” sale on December 31. Total proceeds received amount to $38,500. Required: Record the transaction for each independent assumption shown: 1. The common stock has a current market value of $19 per share; the current market value of preferred stock is not known. 2. The common stock and the preferred stock have a current market value per share of $22 and $59, respectively.
Sage Corporation issued 392 shares of $10 par value common stock and 128 shares of $50 par value preferred stock for a lump sum of $17,424. The common stock has a market price of $20 per share, and the preferred stock has a market price of $90 per share.Prepare the journal entry to record the issuance.
The Delgado Software Corporation is authorized to issue 80,000 ordinary shares. During the current year, the corporation issued 25,000 shares. Required: Prepare the required entry to record the issuance of the ordinary shares under each of the following assumptions: 1. The shares have a P5 par value and were sold for P20 per share. 2. The shares are no-par but have a stated value of P10. The total issue price was P850,000. 3. The shares are no-par and have no stated value. They were issued at P25 per share.
Trenton Company's common stock carries a par value of $ 1.00 per share. The company is authorized to issue an additional 32000 shares of common stock. What would the journal entry be for the issuance of 4000 shares of common stock at $ 1.75 per share?
Blossom Inc. issues 500 shares of $10 par value common stock and 100 shares of $100 par value preferred stock for a lump sum of $105,000. (a) Prepare the journal entry for the issuance when the market price of the common shares is $172 each and market price of the preferred is $215 each. (b) Prepare the journal entry for the issuance when only the market price of the common stock is known and it is $180 per share.
Sandhill Storage Products purchased 11600 shares of its own $0.75 par value common stock at a cost of $8 per share. The stock was originally issued at $7 per share. Which of the following is part of the journal entry to record the purchase? Credit Common Stock for $92800. O Debit Treasury Stock for $8700. Debit Treasury Stock for $92800. O Credit Common Stock for $8700.
Pronghorn Inc. issues 4,700 shares of $110 par value preferred stock for cash at $135 per share.Journalize the issuance of the preferred stock. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Rodriguez Corporation issues 8,000 shares of its common stock for $161,400 cash on February 20. Prepare journal entries to record this event under each of the following separate situations. 1. The stock has a $18 par value. 2. The stock has neither par nor stated value. 3. The stock has a $9 stated value. View transaction list Journal entry worksheet A В Record the issue of 8,000 shares of $18 par value common stock for $161,400 cash. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Record entry Clear entry View general journal
Pronghorn Corporation purchased from its stockholders 5,400 shares of its own previously issued stock for $275,400. It later resold 2,160 shares for $54 per share, then 2,160 more shares for $49 per share, and finally 1,080 shares for $43 per share. Prepare journal entries for the purchase of the treasury stock and the three sales of treasury stock. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation I (To record purchase from stockholders.) (To record sales of shares at $54 per share.) (To record sales of shares at $49 per share.) Debit Credit
Taylor Corporation issues 20,000 shares of $50 par value preferred stock for cash at $90 per share. The entry to record the transaction will consist of a debit to Cash for $1,800,000 and a credit or credits to a. Paid-in Capital from Preferred Stock for $1,800,000. O b. Preferred Stock for $1,800,000. O c. Preferred Stock for $800,000 and Paid-in Capital from Preferred Stock for $1,000,000. O d. Preferred Stock for $1,000,000 and Paid-in Capital in Excess of Par-Preferred Stock for $800,000.
On Jan 1, Niumbus ent. issues 4,550 shares of no-par common stock at a cash price of P9 per share. Journalize the issuance of the shares assuming the stock has a stated value of P1 per share.
Your answer is partially correct. Bridgeport Corporation issued 384 shares of $10 par value common stock and 144 shares of $50 par value preferred stock for a lump sum of $19,872. The common stock has a market price of $20 per share, and the preferred stock has a market price of $100 per share. Prepare the journal entry to record the issuance. (Round intermediate calculations to 6 decimal places, e.g. 0.546872 and final answers to 0 decimal places, e.g., 1,520. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Cash Common Stock Paid-in Capital in Excess of Par - Common Stock Preferred Stock Paid-in Capital in Excess of Par - Preferred Stock Debit 19872 Credit 3840 7200

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