Sheridan Ltd. issued 12.000 common shares on conversion of 8,000 preferred shares. The conversion involved all preferred sharesoutstanding. The preferred shares were originally issued at $9 per share and the Contributed Surplus-Conversion Rights account forthe preferred shares had a balance of $9,000. The common shares were trading at $14 per share at the time of conversion.Record the conversion of the preferred shares. (Credit account titles are automatically indented when the amount is entered. Do not indentmanually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.)Account Titles and ExplanationPreferred SharesContributed Surplus-Conversion RightsCommon SharesDebit1590009000Credit168000

The total value of preferred shares can be calculated by multiplying the number of preferred shares…

Answered: Sheridan Ltd. issued 12.000 common…

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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Metlock Corporation issued 1,800 shares of $10 par value common stock upon conversion of 900 shares of $50 par value preferred stock. The preferred stock was originally issued at $65 per share. The common stock is trading at $27 per share at the time of conversion.Record the conversion of the preferred stock. (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 0 for the amounts.) Account Titles and Explanation Debit Credit enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title
WW Corp. resells 400 shares of its own common stock for $20 per share. WW had acquired these shares two months before for $16 per share. The resale of this stock would be recorded with a: Select one: a. Debit to Common Stock for $8,000 b. Credit to Additional Paid-In Capital for $1,600 c. Debit to Additional Paid-In Capital for $2,000 d. Credit to Treasury Stock for $8,000 e. Credit to Additional Paid-In Capital for $2,000
On July 1, 2021, Nall Co. issued 2,500 shares of its $10 par common stock and 5,000 shares of its $12 par preferred stock for a lump sum of $140,000. At this date Nall's common stock was selling for $18 per share and the preferred stock for $24 per share. A. Record the journal entry for this allocation and insurance using the proportional method. Record the journal entry for this allocation and issuance using the incremental method, assuming you do not have the market value for preferred stock.
Required: Prepare general journal entries for the following transactions involving short-term securities (assume no investments were held prior to the following transactions): (a) Feb 12: Purchased 600 Flipper Corp shares at $50 per share. Commission Fee was $50. (b) Feb 27: Purchased 200 Jason Corp shares at $30 per share, no commission (c) Mar 16: Received a $4 per share dividend on the Flipper Corp shares. (d) Mar 31: Sold 150 shares of Flipper Corp at $60 per share.
On February 1. Mini Company purchased 1.000 shares (2% ownership) of Win Company common stock for $30 per share. The shares are classified as a short-term investment. On March 20, Mini Company sold 200 shares of Win stock for $5,800. Mini received a dividend of $1 per share on April 25. The fair value of the remaining stock is $26,400 on June 30. The entry to record the appropriate fair value adjustment on June 30 would include a debit to O Urealzed Gain or Lass - Income in the amount of $2,400. 57 167 points O Fair Value Adjustment -Stock in the amount of $2.400. O Unrealized Gain or Loss -Income in the amount of $3,600. O No gain or loss should be recorded because no adlitional shares were sold on June 30. 58 L66 points The Norfolk Pine Co purchased 10.000 shares of Peperomia Ginny, Inc. on July 1 at a cost of $18 per share. On December 1, Norfolk Pine sells 600 shares at a price of $20 per share. Norfolk Pine's entry to record this transaction will include a 0 debit to Common Stock…
(44). Subject:- Accounting On March 1, Emma Corp purchased 1,900 (or 11%) of the common shares of Christine Corp for $40 per share. Brokerage fees of $1,100 were incurred on the purchase. On December 1, Christine Corp declared and paid $30,000 of dividends. On December 31, shares of Christine Corp were trading at $62 per share. The investment was recorded using FVTOCI. What amount would be recorded to the "Investment in Christine Corp" account on March 1?
Maxville Company issues 250 shares of $50 par preferred stock and 1,000 shares of $10 par common stock in a "package" sale on December 31. Total proceeds received amount to $39,700. Required: 1. 2. Record the transaction for each independent assumption shown: The common stock has a current market value of $19 per share; the current market value of preferred stock is not known. The common stock and the preferred stock have a current market value per share of $22 and $62, respectively.
Maxville Company issues 250 shares of $50 par preferred stock and 1,000 shares of $10 par common stock in a “package” sale on December 31. Total proceeds received amount to $39,700. 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 $62, respectively.
On November 1 of Year 1, Drucker Co. acquired the following investments in equity securities measured at FV-NI. Kelly Corporation 400 shares of common stock (no-par) at $60 per share Keefe Corporation 240 shares preferred stock ($10 par) at $20 per share On December 31, the company's year-end, the quoted market prices were as follows: Kelly Corporation common stock, $52, and Keefe Corporation preferred stock, $24. Following are the data for the following year (Year 2). Mar. 02: Dividends per share, declared and paid: Kelly Corp., $1, and Keefe Corp., $0.50. Oct. 01: Sold 80 shares of Keefe Corporation preferred stock at $25 per share. Dec. 31: Fair values: Kelly common, $46 per share, Keefe preferred, $26 per share. Year 1 Year 2 d. Prepare the entries required in Year 2 to record dividend revenue, the sale of stock, and the fair value adjustment. Assume that the Fair Value Adjustment account needs to be adjusted for the investment portfolio on December 31, Year 2. Date Mar. 2, Year 2…
Tamarisk, Inc. issues 9,400 shares of $106 par value preferred stock for cash at $110 per share. Journalize the issuance of the preferred stock. (Credit account titles are automatically Indented when amount Is entered. Do not Indent manually. If no entry Is requlred, select "No Entry" for the account titles and enter o for the amounts.)
WW Corp. resells 400 shares of its own common stock for $20 per share. WW had acquired these shares two months before for $14 per share. The resale of this stock would be recorded with a: Select one: a. Debit to Common Stock for $8,000 b. Credit to Additional Paid-In Capital for $800 c. Credit to Treasury Stock for $8,000 d. Credit to Additional Paid-In Capital for $2,400 e. Credit to Additional Paid-In Capital for $2,000
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