The Adams family decided early in 2020 to incorporate their family-owned farm under the name Adams Corporation. The corporation was authorized to issue 100,000 shares of a single class of $1 par value capital stock. Presented as follows is the information necessary to prepare the stock- holders' equity section of the company's balance sheet at the end of 2020 and at the end of 2021. 2020. In January the corporation issued to members of the Adams family 20,000 shares of cap- ital stock in exchange for cash and other assets used in the operation of the farm. The fair market value of these assets indicated an issue price of $25 per share. In December, George Adams died and the corporation purchased 4,000 shares of its own capital stock from his estate at $30 per share. Because of the large cash outlay to acquire this treasury stock, the directors decided not to

The Adams family decided early in 2020 to incorporate their family-owned farm under the name Adams Corporation. The corporation was authorized to issue 100,000 shares of a single class of $1 par value capital stock. Presented as follows is the information necessary to prepare the stock- holders' equity section of the company's balance sheet at the end of 2020 and at the end of 2021. 2020. In January the corporation issued to members of the Adams family 20,000 shares of cap- ital stock in exchange for cash and other assets used in the operation of the farm. The fair market value of these assets indicated an issue price of $25 per share. In December, George Adams died and the corporation purchased 4,000 shares of its own capital stock from his estate at $30 per share. Because of the large cash outlay to acquire this treasury stock, the directors decided not to

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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