A corporation may issue shares at par or at the price more than the par value, the issuance of a common stock affects only paid-in capital and capital account. The journal entry to record A Co. issuance of 42,500 shares of $4 par value for $297,500 cash.

Question

Want to see the full answer?

Answer 1

Question

Chapter 11, Problem 5QS

a

To determine

Introduction: A corporation may issue shares at par or at the price more than the par value, the issuance of a common stock affects only paid-in capital and capital account.

The journal entry to record A Co. issuance of 42,500 shares of $4 par value for $297,500 cash.

b

To determine

Introduction: A corporation may issue shares at par or at the price more than the par value, the issuance of a common stock affects only paid-in capital and capital account.

The journal entry to record OP Co issuance of no-par value stock for $70,000 cash.

c

To determine

Introduction: If the shares are issued by an organization against acquiring an asset (other than cash), in such cases, the asset acquired by the organization is recorded at its market value. This market value is considered for the date on which such a transaction takes place. The stock is recorded at par or stated value in such a case.

The journal entry to record MPG, Issuance of 2,000 shares of $25 par value for $45,000 inventory, $145,000 of machinery, and acceptance of $94,000 note payable.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Write down as many descriptions describing rock and roll that you can. From these descriptions can you come up with s denition of rock and roll? What performers do you recognize? What performers don’t you recognize? What can you say about musical inuence on these current rock musicians? Try to break these inuences into genres and relate them to the rock musicians. What does Mick Jagger say about country artists? What does pioneering mean? What kind of ensembles w

Recently, Abercrombie & Fitch has been implementing a turnaround strategy since its sales had been falling for the past few years (11% decrease in 2014, 8% in 2015, and just 3% in 2016.) One part of Abercrombie's new strategy has been to abandon its logo-adorned merchandise, replacing it with a subtler look. Abercrombie wrote down $20.6 million of inventory, including logo-adorned merchandise, during the year ending January 30, 2016. Some of this inventory dated back to late 2013. The write-down was net of the amount it would be able to recover selling the inventory at a discount. The write-down is significant; Abercrombie's reported net income after this write-down was $35.6 million. Interestingly, Abercrombie excluded the inventory write-down from its non-GAAP income measures presented to investors; GAAP earnings were also included in the same report. Question: What impact would the write-down of inventory have had on Abercrombie's expenses, Gross margin, and Net income?

Recently, Abercrombie & Fitch has been implementing a turnaround strategy since its sales had been falling for the past few years (11% decrease in 2014, 8% in 2015, and just 3% in 2016.) One part of Abercrombie's new strategy has been to abandon its logo-adorned merchandise, replacing it with a subtler look. Abercrombie wrote down $20.6 million of inventory, including logo-adorned merchandise, during the year ending January 30, 2016. Some of this inventory dated back to late 2013. The write-down was net of the amount it would be able to recover selling the inventory at a discount. The write-down is significant; Abercrombie's reported net income after this write-down was $35.6 million. Interestingly, Abercrombie excluded the inventory write-down from its non-GAAP income measures presented to investors; GAAP earnings were also included in the same report. Question: What impact would the write-down of inventory have had on Abercrombie's assets, Liabilities, and Equity?

Answer 2

Question

Chapter 11, Problem 5QS

a

To determine

Introduction: A corporation may issue shares at par or at the price more than the par value, the issuance of a common stock affects only paid-in capital and capital account.

The journal entry to record A Co. issuance of 42,500 shares of $4 par value for $297,500 cash.

b

To determine

Introduction: A corporation may issue shares at par or at the price more than the par value, the issuance of a common stock affects only paid-in capital and capital account.

The journal entry to record OP Co issuance of no-par value stock for $70,000 cash.

c

To determine

Introduction: If the shares are issued by an organization against acquiring an asset (other than cash), in such cases, the asset acquired by the organization is recorded at its market value. This market value is considered for the date on which such a transaction takes place. The stock is recorded at par or stated value in such a case.

The journal entry to record MPG, Issuance of 2,000 shares of $25 par value for $45,000 inventory, $145,000 of machinery, and acceptance of $94,000 note payable.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 11, Problem 5QS

a

To determine

Introduction: A corporation may issue shares at par or at the price more than the par value, the issuance of a common stock affects only paid-in capital and capital account.

The journal entry to record A Co. issuance of 42,500 shares of $4 par value for $297,500 cash.

b

To determine

Introduction: A corporation may issue shares at par or at the price more than the par value, the issuance of a common stock affects only paid-in capital and capital account.

The journal entry to record OP Co issuance of no-par value stock for $70,000 cash.

c

To determine

Introduction: If the shares are issued by an organization against acquiring an asset (other than cash), in such cases, the asset acquired by the organization is recorded at its market value. This market value is considered for the date on which such a transaction takes place. The stock is recorded at par or stated value in such a case.

The journal entry to record MPG, Issuance of 2,000 shares of $25 par value for $45,000 inventory, $145,000 of machinery, and acceptance of $94,000 note payable.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 11, Problem 5QS

a

To determine

Introduction: A corporation may issue shares at par or at the price more than the par value, the issuance of a common stock affects only paid-in capital and capital account.

The journal entry to record A Co. issuance of 42,500 shares of $4 par value for $297,500 cash.

b

To determine

Introduction: A corporation may issue shares at par or at the price more than the par value, the issuance of a common stock affects only paid-in capital and capital account.

The journal entry to record OP Co issuance of no-par value stock for $70,000 cash.

c

To determine

Introduction: If the shares are issued by an organization against acquiring an asset (other than cash), in such cases, the asset acquired by the organization is recorded at its market value. This market value is considered for the date on which such a transaction takes place. The stock is recorded at par or stated value in such a case.

The journal entry to record MPG, Issuance of 2,000 shares of $25 par value for $45,000 inventory, $145,000 of machinery, and acceptance of $94,000 note payable.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 11, Problem 5QS

a

To determine

Introduction: A corporation may issue shares at par or at the price more than the par value, the issuance of a common stock affects only paid-in capital and capital account.

The journal entry to record A Co. issuance of 42,500 shares of $4 par value for $297,500 cash.

b

To determine

Introduction: A corporation may issue shares at par or at the price more than the par value, the issuance of a common stock affects only paid-in capital and capital account.

The journal entry to record OP Co issuance of no-par value stock for $70,000 cash.

c

To determine

Introduction: If the shares are issued by an organization against acquiring an asset (other than cash), in such cases, the asset acquired by the organization is recorded at its market value. This market value is considered for the date on which such a transaction takes place. The stock is recorded at par or stated value in such a case.

The journal entry to record MPG, Issuance of 2,000 shares of $25 par value for $45,000 inventory, $145,000 of machinery, and acceptance of $94,000 note payable.

Answer 6

Chapter 11, Problem 5QS

a

To determine

Introduction: A corporation may issue shares at par or at the price more than the par value, the issuance of a common stock affects only paid-in capital and capital account.

The journal entry to record A Co. issuance of 42,500 shares of $4 par value for $297,500 cash.

Answer 7

Chapter 11, Problem 5QS

a

To determine

Introduction: A corporation may issue shares at par or at the price more than the par value, the issuance of a common stock affects only paid-in capital and capital account.

The journal entry to record A Co. issuance of 42,500 shares of $4 par value for $297,500 cash.

Answer 8

b

To determine

Introduction: A corporation may issue shares at par or at the price more than the par value, the issuance of a common stock affects only paid-in capital and capital account.

The journal entry to record OP Co issuance of no-par value stock for $70,000 cash.

Answer 9

b

To determine

Introduction: A corporation may issue shares at par or at the price more than the par value, the issuance of a common stock affects only paid-in capital and capital account.

The journal entry to record OP Co issuance of no-par value stock for $70,000 cash.

Answer 10

c

To determine

Introduction: If the shares are issued by an organization against acquiring an asset (other than cash), in such cases, the asset acquired by the organization is recorded at its market value. This market value is considered for the date on which such a transaction takes place. The stock is recorded at par or stated value in such a case.

The journal entry to record MPG, Issuance of 2,000 shares of $25 par value for $45,000 inventory, $145,000 of machinery, and acceptance of $94,000 note payable.

Answer 11

c

To determine

Introduction: If the shares are issued by an organization against acquiring an asset (other than cash), in such cases, the asset acquired by the organization is recorded at its market value. This market value is considered for the date on which such a transaction takes place. The stock is recorded at par or stated value in such a case.

The journal entry to record MPG, Issuance of 2,000 shares of $25 par value for $45,000 inventory, $145,000 of machinery, and acceptance of $94,000 note payable.

Answer 12

Expert Solution & Answer

Answer 13

Expert Solution & Answer

Answer 14

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 15

Ch. 11 - Prob. 1MCQ Ch. 11 - Prob. 2MCQ Ch. 11 - Prob. 3MCQ Ch. 11 - Prob. 4MCQ Ch. 11 - Prob. 5MCQ Ch. 11 - Prob. 1DQ Ch. 11 - Prob. 2DQ Ch. 11 - Prob. 3DQ Ch. 11 - Prob. 4DQ Ch. 11 - Prob. 5DQ

A corporation may issue shares at par or at the price more than the par value, the issuance of a common stock affects only paid-in capital and capital account. The journal entry to record A Co. issuance of 42,500 shares of $4 par value for $297,500 cash.

Solution Summary: The author explains that a corporation may issue shares at par or at the price more than the par value, affecting only paid-in capital and capital account.

Concept explainers

Videos

Introduction: A corporation may issue shares at par or at the price more than the par value, the issuance of a common stock affects only paid-in capital and capital account.

The journal entry to record A Co. issuance of 42,500 shares of $4 par value for $297,500 cash.

Introduction: A corporation may issue shares at par or at the price more than the par value, the issuance of a common stock affects only paid-in capital and capital account.

The journal entry to record OP Co issuance of no-par value stock for $70,000 cash.

Want to see the full answer?

Chapter 11 Solutions

A corporation may issue shares at par or at the price more than the par value, the issuance of a common stock affects only paid-in capital and capital account. The journal entry to record A Co. issuance of 42,500 shares of $4 par value for $297,500 cash.

Solution Summary: The author explains that a corporation may issue shares at par or at the price more than the par value, affecting only paid-in capital and capital account.

Concept explainers

Videos

Introduction: A corporation may issue shares at par or at the price more than the par value, the issuance of a common stock affects only paid-in capital and capital account. The journal entry to record A Co. issuance of 42,500 shares of $4 par value for $297,500 cash.

Introduction: A corporation may issue shares at par or at the price more than the par value, the issuance of a common stock affects only paid-in capital and capital account. The journal entry to record OP Co issuance of no-par value stock for $70,000 cash.

Want to see the full answer?

Chapter 11 Solutions

Introduction: A corporation may issue shares at par or at the price more than the par value, the issuance of a common stock affects only paid-in capital and capital account.

The journal entry to record A Co. issuance of 42,500 shares of $4 par value for $297,500 cash.

Introduction: A corporation may issue shares at par or at the price more than the par value, the issuance of a common stock affects only paid-in capital and capital account.

The journal entry to record OP Co issuance of no-par value stock for $70,000 cash.