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.

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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.

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Evergreen Corporation (calendar-year-end) acquired the following assets during the current year: (Use MACRS Table 1 and Table 2.) Date Placed in Asset Machinery Service October 25 Original Basis $ 120,000 Computer equipment February 3 47,500 Used delivery truck* August 17 Furniture April 22 60,500 212,500 The delivery truck is not a luxury automobile. Note: Do not round intermediate calculations. Round your answers to the nearest whole dollar amount. a. What is the allowable depreciation on Evergreen's property in the current year, assuming Evergreen does not elect §179 expense and elects out of bonus depreciation? Depreciation $ 69,096

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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.

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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.

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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.

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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

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Answer 13

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Answer 14

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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.