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.
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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
I need the answer as soon as possible
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.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 1 images
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education