(a)
Common stock: These are the ordinary shares that a corporation issues to the investors in order to raise funds. In return, the investors receive a share of profit from the profits earned by the corporation in the form of dividend.
Par value: It refers to the value of a stock that is stated by the corporation’s charter. It is also known as face value of a stock.
Stated value: It refers to an amount per share, which is assigned by the board of directors to no par value stock.
Issue of common stock for non-cash assets or services: Corporations often issue common stock for the services received from attorneys or consultants as compensation, or for the purchase of non-cash assets such as land, buildings, or equipment.
To Journalize: The transaction, assume that the common stock has a par value of $5 per share and was issued for a total cash of $52,000.
(b)
To Journalize: The transaction, assume that the common stock has a stated value of $5 per share and was issued for a total cash of $52,000.
(c)
To Journalize: The transaction, assume that the common stock has no stated value or par value and was issued for a total cash of $52,000.
(d)
To Journalize: The transaction, assume that the common stock has a par value of $5 per share and was issued for service rendered by the attorney during incorporation been valued at $52,000.
(e)
To Journalize: The transaction, assume that the common stock has a par value of $5 per share and was issued for land worth $52,000
Want to see the full answer?
Check out a sample textbook solution
Chapter 11 Solutions
FINANCIAL&MNGRL ACCT (LL)W//WILEYPLUS>C
- Trevino Apparel Company manufactures and sells women's blouses. Each blouse (unit) requires 2.2 yards of fabric. Selected data from Trevino's master budget for next quarter are shown below: Each unit requires 1.8 hours of direct labor, and the average hourly cost of Trevino's direct labor is $12. What is the cost of Trevino Apparel Company's direct labor in October if they produce 10,500 blouses?arrow_forwardGeneral accountingarrow_forwardWhat is the sustainable rate of growth? General accountingarrow_forward
- What is the company's plantwide overhead rate?arrow_forwardHii ticher please provide correct answer general Accountingarrow_forwardFelker Health Center measures its activity in terms of patient visits. Last month, the budgeted level of activity was 1,460 patient visits and the actual level of activity was 1,580 patient visits. The cost formula for administrative expenses is $2.50 per patient visit plus $17,800 per month. The actual administrative expense was $22,250. Last month, the spending variance for administrative expenses was _.arrow_forward
AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,
Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSON
Intermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill Education
Financial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education