Sheffield Corp. issues 8,500 shares of $100 par value preferred stock for cash at $106 per share. Journalize the issuance of the preferred stock.

Q: Lily Company issues 5,000 shares of its $2 common stock when the market price is $5 per share. The…

A: Journal entry is the procedure for initially documenting commercial transactions in the books of…

Q: Sneed Corporation issues 13,300 shares of $46 par preferred stock for cash at $61 per share. The…

A: Whenever the preferred stock shares are issued at premium i.e above their par value, the par value…

Q: The Sneed Corporation issues 10,000 shares of $50 par preferred stock for cash at $75 per share.…

A: Paid in capital in excess of par = (Issue price per share - Face value per share) x No. of shares =…

Q: Sunshine Corp. was organized on Jan. 1 with authorization of 20,000 shares of $5 preferred stock,…

A: Common Stock - Common Stock is the stock issued to the public for raising capital. This recorded in…

Q: Alma Corp. issues 1,000 shares of $10 par common stock at $14 per share. When the transaction is…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: Pronghorn Corp. is authorized to issue both preferred and common stock. The par value of the…

A: Company can issue two types of stock in the business. One is common stock and other is Preference…

Q: XYZ Company issued 3,000 shares of $1 par common stock at $12 per share. Journalize this…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: On May 10, Bramble Corp. issues 1,200 shares of $7 par value common stock for cash at $12 per share.…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: During its first year of operations, Bridgeport Corporation had the following transactions…

A: Lets understand the basics.Journal entry is required to make to record event and transaction happens…

Q: Nexis Corp. issues 1,980 shares of $10 par value common stock at $16 per share. When the transaction…

A: The objective of the question is to determine the correct journal entry for the issuance of common…

Q: Martinez Corp. is authorized to issue both preferred and common stock. The par value of the…

A: The cash received in excess of the par value of shares is reported as Additional paid-in capital or…

Q: On July 1, Hanson Corporation issued 10 shares of $100 par value preferred stock for cash of $1,000…

A: Journal Entries - Journal Entries are the recording of transactions of the organization. It is…

Q: On June 1, Noonan Inc. issues 3,550 shares of no-par common stock at a cash price of $9 per share.…

A: All the transactions of an entity are properly accounted by making corresponding journal entries in…

Q: Vaughn Inc. issues 500 shares of $10 par value common stock and 100 shares of $100 par value…

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

Q: If Dakota Company issues 3,200 shares of $10 par common stock for $57,600, Oa. Cash will be debited…

A: Issue of shares Issue of Shares is the process by which companies pass on new shares to…

Q: Torres Inc. issues 40,000 shares of its $0.05 par value common stock for $70 per share. The journal…

A: To record issue of shares at a value more than par value, common stock will be credited by par value…

Q: On July 1, Blue Spruce Corp. purchases 550 shares of its $5 par value common stock for the treasury…

A: Cost of treasury stock = 550 shares*$9 Cost of treasury stock = $4,950   Cash received on sale of…

Q: A company issued 50 shares of $100 par value common stock for $7,400 cash. The journal entry to…

A: INTRODUCTION: Common stock is a sort of investment that reflects equity ownership in a firm. Other…

Q: Ehrlich Co. is authorized to issue 1,000,000 of it's $5 par value common stock. 1. Prepare entries…

A: The journal entries are prepared to record the transactions on regular basis. The temporary account…

Q: The Sneed Corporation issues 11,100 shares of $54 par preferred stock for cash at $62 per share. The…

A: The company can raise funds from different sources like by issuing common stock, issuing preferred…

Q: On January 6, Dee-Light Corporation issued for cash 22,750 shares of $2 par value common stock at…

A: Common stock and preference stock are two types of stock issued by a company. When company receives…

Q: The Snow Corporation issues 9,900 shares of $54 par value preferred stock for cash at $62 per share.…

A: Whenever the preferred stock shares are issued at premium i.e above their par value, the par value…

Q: Nebraska Inc. issues 3,050 shares of common stock for $97,600. The stock has a stated value of $11…

A: The journal entry for stock issuance is represented as: Cash…

Q: Indigo Corporation is authorized to issue both preferred and common stock. The par value of the…

A: Journal entries       Date…

Q: To expand operations, Aragon Consulting issued 1,200 shares of previously unissued common stock with…

A: When the stock is issued higher than the par value of stock by the company, the excess amount is…

Q: Prepare the journal entry to record Jevonte Company's issuance of 36,000 shares of its common stock…

A: Solution: When common stock are issued for cash, cash is debited for issue price and common stock is…

Q: Gotham Inc. issued 10,000 shares of its $2 par value common stock for $25 per share. The journal…

A: Cash (10,000 x $25) 250,000     Common Stock (10,000 x $2)   20,000   Additional Paid-in Capital…

Q: SICO Co. has 8,000 shares issued and outstanding. The per-share par value is $1.5; book value $40…

A: The dividend is considered as a part of the distributable profit distributed by the company to its…

Q: Blossom Company had these transactions during the current period. June 12   Issued 82,000 shares…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: Larkspur, Inc. issues 7,600 shares of $108 par value preferred stock for cash at $116 per share.…

A: If the shares are issued for more than a par value of stock, then the excess amount goes to Paid-in…

Q: Equinox Outdoor Wear issues 1,000 shares of its $0.01 par value preferred stock for cash at $32 per…

A: Preferred stock: It refers to a form of stock that possesses the characteristics of both equity and…

Q: Toronto, Inc. issued 4,000 shares of $100 par preferred stock at $155 a share. Each share of stock…

A: Workings:

Q: Calculating the Number of Shares Issued Chester Inc. issued shares of its $3.85 par value common…

A: Paid-in capital of common stock, also known as contributed capital, represents the total amount of…

Q: Sage Corporation issued 392 shares of $10 par value common stock and 128 shares of $50 par value…

A: Under proportionate method, the lump sum amount has to be allocated between common stock and…

Q: Nebraska Inc. issues 2,750 shares of common stock for $88,000. The stock has a stated value of $20…

A: When common stock is issued above par/stated value then the journal entry comprises of debit of cash…

Q: Entity H issued 9,000 shares of its $1 par value common stock for $20 per share. Which of the…

A: Common Stock - Common Stock is a stock issued by the organization to raise its equity through…

Q: Nebraska Inc. issues 2,750 shares of common stock for $88,000. The stock has a stated value of $20…

A: Introduction: Journal: Recording of a business transactions in a chronological order. First step in…

Q: Prepare the journal entry to record Shane Company's issuance of 85,000 shares of $8 par value common…

A: A type of security called common stock symbolizes a company's equity ownership. Investors can share…

Q: Pronghorn Inc. issues 4,700 shares of $110 par value preferred stock for cash at $135 per…

A: Account Titles and Explanation Debit Credit Cash (4700*135) $634,500              Preferred…

Q: Prepare the journal entry to record Jevonte Company’s issuance of 41,000 shares of its common stock…

A: Shares are the primary source of finance for the company. The holder of common shares in also known…

Q: Nexis Corp. issues 1,110 shares of $9 par value common stock at $17 per share. When the transaction…

A: When common stock is issued anything received in excess of par is credited to paid in capital in…

Q: Pina Colada Inc. issues 4,650 shares of $100 par value preferred stock for cash at $145 per share.…

A: Paid in capital in excess of stated value = (Issue value per share - Stated value per share) x No.…

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.