Sheffield Corp. issued 5,900 shares of its $5 par value common stock having a fair value of $25 per share and 8,400 shares of its $15 par value preferred stock having a fair value of $20 per share for a lump sum of $254,000. The proceeds allocated to the preferred stock is a. $118,748 b. $168,000 c. $169,800 d. $135,252

Sheffield Corp. issued 5,900 shares of its $5 par value common stock having a fair value of $25 per share and 8,400 shares of its $15 par value preferred stock having a fair value of $20 per share for a lump sum of $254,000. The proceeds allocated to the preferred stock is a. $118,748 b. $168,000 c. $169,800 d. $135,252

Accounting (Text Only)

26th Edition

ISBN:9781285743615

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter15: Investments And Fair Value Accounting

Section: Chapter Questions

Problem 15.4CPP: Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31,...

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Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 20Y8, were as follows: A. Issued 15,000 shares of 20 par common stock at 30, receiving cash. B. Issued 4,000 shares of 80 par preferred 5% stock at 100, receiving cash. C. Issued 500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. D. Declared a quarterly dividend of 0.50 per share on common stock and 1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held, and 20,000 shares of preferred stock were outstanding. E. Paid the cash dividends declared in (D). F. Purchased 8,000 shares of treasury common stock at 33 per share. G. Declared a 1.00 quarterly cash dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock had been issued. H. Paid the cash dividends to the preferred stockholders. I. Sold, at 38 per share, 2,600 shares of treasury common stock purchased in (F). J. Recorded the payment of semiannual interest on the bonds issued in (C) and the amortization of the premium for six months. The amortization is determined using the straight-line method. Instructions 1. Journalize the selected transactions. 2. After all of the transactions for the year ended December 31, 20Y8, had been posted [including the transactions recorded in part (1) and all adjusting entries], the data that follow were taken from the records of Equinox Products Inc. Income statement data: Advertising expense 150,000 Cost of goods sold 3,700,000 Delivery expense 30,000 Depreciation expenseoffice buildings and equipment 30,000 Depreciation expensestore buildings and equipment 100,000 Income tax expense 140,500 Interest expense 21,000 Interest revenue 30,000 Miscellaneous administrative expense 7,500 Miscellaneous selling expense 14,000 Office rent expense 50,000 Office salaries expense 170,000 Office supplies expense 10,000 Sales 5,313,000 Sales commissions 185,000 Sales salaries expense 385,000 Store supplies expense 21,000 Retained earnings and balance sheet data: Accounts payable 194,300 Accounts receivable 545,000 Accumulated depreciationoffice buildings and equipment 1,580,000 Accumulated depreciationstore buildings and equipment 4,126,000 Allowance for doubtful accounts 8,450 Bonds payable, 5%, due in 10 years 500,000 Cash 282,850 Common stock, 20 par (400,000 shares authorized; 100,000 shares issued, 94,600 outstanding) 2,000,000 Dividends: Cash dividends for common stock 155,120 Cash dividends for preferred stock 100,000 Goodwill 700,000 Income tax payable 44,000 Interest receivable 1,200 Inventory (December 31, 20Y8),at lower of cost (FIFO) or market 778,000 Office buildings and equipment 4,320,000 Paid-in capital from sale of treasury stock 13,000 Excess of issue price over parcommon stock 886,800 Excess of issue price over parpreferred stock 150,000 Preferred 5% stock, 80 par (30,000 shares authorized; 20,000 shares issued) 1,600,000 Premium on bonds payable 19,000 Prepaid expenses 27,400 Retained earnings, January 1, 20Y8 8,197,220 Store buildings and equipment 12,560,000 Treasury stock (5,400 shares of common stock at cost of 33 per share) 178,200 A. Prepare a multiple-step income statement for the year ended December 31, 20Y8. B. Prepare a retained earnings statement for the year ended December 31, 20Y8. C. Prepare a balance sheet in report form as of December 31, 20Y8.
Prepare general journal entries for the following transactions of GOTE Company: (a) Received subscriptions for 10,000 shares of 2 par common stock for 80,000. (b) Received payment of 30,000 on the stock subscription in transaction (a). (c) Received the balance in full for the stock subscription in transaction (a) and issued the stock. (d) Purchased 1,000 shares of its own 2 par common stock for 7.50 a share. (e) Sold 500 shares of the stock on transaction (d) for 8.50 a share.
Norton Company issues 4,000 shares of its $5 par value common stock having a fair value of $25 per share and 6,000 shares of its $15 par value preferred stock having a fair value of $20 per share for a lump sum of $205,000. What amount of the proceeds should be allocated to the preferred stock? a. $167,727 b. $111,818 c. $93,181 d. $128,125
The Sneed Corporation issues 11,100 shares of $54 par preferred stock for cash at $62 per share. The entry to record the transaction will consist of a debit to Cash for $688,200 and a credit or credits to a.Paid-in Capital from Preferred Stock for $688,200. b.Preferred stock for $599,400 and Paid-in Capital in Excess of Par Value−Preferred Stock for $88,800. c.Preferred Stock for $688,200. d.Preferred Stock for $599,400 and Retained Earnings for $88,800.
ABC Company issued 10,000 common stocks with a par value of $5 and a fair value of $25 per share along with 15,000 preferred stocks with a par value of $15 and a fair value of $20 per share. Both shares were issued for a total (lump sum) of $530,000. How much of the $530,000 should be allocated to common stock? a. $250,000 b. $289,091 c. $240,909
ABC issued 10,000 common shares with a par value of $ 5 and a market value of $ 25 per share along with 15,000 preferred shares with an par value of $ 15 and a market value of $ 20 per share. Both shares were issued for a total (price included) of $ 530,000. How much of the $ 530,000 must be allocated to common shares? a. 240,909 b. 281,563 c. $250,000 d. 284,091
Xenon Company issued 5,000 shares of its P5 par value common stock having a fair value of P25 per share and 7,500 shares of its P15 par value preferred stock having a fair value of P20 per share for a lump sum of P260,000. The proceeds allocated to the preferred stock is:
Glavine Company issues 6,000 shares of its $5 par value common stock having a fair market value of $25 per share and 9,000 shares of its $15 par value preferred stock having a fair market value of $20 per share for a lump sum of $297,000. The proceeds allocated to the common stock are: a. 150,000 b. 162,000 c. 118,800 d. 135,000
Sneed Corporation issues 11,700 shares of $55 par preferred stock for cash at $60 per share. The entry to record the transaction will consist of a debit to Cash for $702,000 and a credit or credits to a.Preferred Stock for $643,500 and Retained Earnings for $58,500. b.Preferred Stock for $643,500 and Paid-In Capital in Excess of Par—Preferred Stock for $58,500. c.Paid-In Capital from Preferred Stock for $702,000. d.Preferred Stock for $702,000.
The Sneed Corporation issues 12,700 shares of $46 par preferred stock for cash at $63 per share. The entry to record the transaction will consist of a debit to Cash for $800,100 and a credit or credits to: a.Preferred Stock for $584,200 and Retained Earnings for $215,900. b.Preferred stock for $584,200 and Paid-in Capital in Excess of Par Value−Preferred Stock for $215,900. c.Preferred Stock for $800,100. d.Paid-in Capital from Preferred Stock for $800,100.
Sunland Company issued 4500 shares of its $10 par value common stock having a fair value of $30 per share and 7100 shares of its $10 par value preferred stock having a fair value of $30 per share for a lump sum of $252000. The proceeds allocated to the preferred stock is $154241 $215296 $97759 $213000
Nexis Corp. issues 1,980 shares of $10 par value common stock at $16 per share. When the transaction is journalized, credits are made to a. Common Stock, $11,880 and Paid-In Capital in Excess of Stated Value, $19,800. b. Common Stock, $19,800, and Paid-In Capital in Excess of Par—Common Stock, $11,880. c. Common Stock, $11,880 and Retained Earnings, $19,800. d. Common Stock, $31,680.