Types of Stocks: These are two types of the share capital of a company. Common Stock represents the Common shares issued to the shareholders and preferred stock represents the preference shares issued. Preference shares are given preference in payment of dividends and repayment of capital. Common shareholders get the inbuilt right to vote in decisions of the company and a preference shareholders generally do not get this right but they may get voting rights with special provisions. Issuance of Common Stock: Common Stock may be issued at par or stated value. In case the issue price is more than the par or stated value, the shares are called to be issued at a premium and in case the issue price is less than the par or stated value, the shares are called to be issued at discount. Common stocks may also be issued at no par or stated value, in such case there shall be no premium or discount recorded on the issue of shares. Requirement-a: To Prepare: The Journal entry to record the issuance of 63,000 shares of no par value common stock at $29 cash per share.

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Answer 1

Question

Chapter 13, Problem 4QS

To determine

Concept Introduction:

Types of Stocks:

These are two types of the share capital of a company. Common Stock represents the Common shares issued to the shareholders and preferred stock represents the preference shares issued. Preference shares are given preference in payment of dividends and repayment of capital. Common shareholders get the inbuilt right to vote in decisions of the company and a preference shareholders generally do not get this right but they may get voting rights with special provisions.

Issuance of Common Stock: Common Stock may be issued at par or stated value. In case the issue price is more than the par or stated value, the shares are called to be issued at a premium and in case the issue price is less than the par or stated value, the shares are called to be issued at discount. Common stocks may also be issued at no par or stated value, in such case there shall be no premium or discount recorded on the issue of shares.

Requirement-a:

To Prepare: The Journal entry to record the issuance of 63,000 shares of no par value common stock at $29 cash per share.

To determine

Requirement-b:

To Prepare: The Journal entry to record the issuance of 63,000 shares of no par value common stock in exchange of land valued $1,827,000

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As a preliminary to requesting budget estimates of sales, costs, and expenses for the fiscal year beginning January 1, 20Y9, the following tentative trial balance as of December 31, 20Y8, is prepared by the Accounting Department of Regina Soap Co.: Account Title Debit Balance Credit Balance Cash $103,500 Accounts Receivable 193,500 Finished Goods 40,600 Work in Process 27,100 Materials 44,500 Prepaid Expenses 3,300 Plant and Equipment 458,500 Accumulated Depreciation—Plant and Equipment $197,200 Accounts Payable 165,300 Common Stock, $10 par 250,000 Retained Earnings 258,500 Total $871,000 $871,000 Factory output and sales for 20Y9 are expected to total 24,000 units of product, which are to be sold at $120 per unit. The quantities and costs of the inventories at December 31, 20Y9, are expected to remain unchanged from the balances at the beginning of the year. Budget estimates of manufacturing costs and operating expenses for the…

Can you explain the correct methodology to solve this general accounting problem?

Answer 2

Question

Chapter 13, Problem 4QS

To determine

Concept Introduction:

Types of Stocks:

These are two types of the share capital of a company. Common Stock represents the Common shares issued to the shareholders and preferred stock represents the preference shares issued. Preference shares are given preference in payment of dividends and repayment of capital. Common shareholders get the inbuilt right to vote in decisions of the company and a preference shareholders generally do not get this right but they may get voting rights with special provisions.

Issuance of Common Stock: Common Stock may be issued at par or stated value. In case the issue price is more than the par or stated value, the shares are called to be issued at a premium and in case the issue price is less than the par or stated value, the shares are called to be issued at discount. Common stocks may also be issued at no par or stated value, in such case there shall be no premium or discount recorded on the issue of shares.

Requirement-a:

To Prepare: The Journal entry to record the issuance of 63,000 shares of no par value common stock at $29 cash per share.

To determine

Requirement-b:

To Prepare: The Journal entry to record the issuance of 63,000 shares of no par value common stock in exchange of land valued $1,827,000

Expert Solution & Answer

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Answer 3

Question

Chapter 13, Problem 4QS

To determine

Concept Introduction:

Types of Stocks:

These are two types of the share capital of a company. Common Stock represents the Common shares issued to the shareholders and preferred stock represents the preference shares issued. Preference shares are given preference in payment of dividends and repayment of capital. Common shareholders get the inbuilt right to vote in decisions of the company and a preference shareholders generally do not get this right but they may get voting rights with special provisions.

Issuance of Common Stock: Common Stock may be issued at par or stated value. In case the issue price is more than the par or stated value, the shares are called to be issued at a premium and in case the issue price is less than the par or stated value, the shares are called to be issued at discount. Common stocks may also be issued at no par or stated value, in such case there shall be no premium or discount recorded on the issue of shares.

Requirement-a:

To Prepare: The Journal entry to record the issuance of 63,000 shares of no par value common stock at $29 cash per share.

To determine

Requirement-b:

To Prepare: The Journal entry to record the issuance of 63,000 shares of no par value common stock in exchange of land valued $1,827,000

Expert Solution & Answer

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Answer 4

Question

Chapter 13, Problem 4QS

To determine

Concept Introduction:

Types of Stocks:

These are two types of the share capital of a company. Common Stock represents the Common shares issued to the shareholders and preferred stock represents the preference shares issued. Preference shares are given preference in payment of dividends and repayment of capital. Common shareholders get the inbuilt right to vote in decisions of the company and a preference shareholders generally do not get this right but they may get voting rights with special provisions.

Issuance of Common Stock: Common Stock may be issued at par or stated value. In case the issue price is more than the par or stated value, the shares are called to be issued at a premium and in case the issue price is less than the par or stated value, the shares are called to be issued at discount. Common stocks may also be issued at no par or stated value, in such case there shall be no premium or discount recorded on the issue of shares.

Requirement-a:

To Prepare: The Journal entry to record the issuance of 63,000 shares of no par value common stock at $29 cash per share.

To determine

Requirement-b:

To Prepare: The Journal entry to record the issuance of 63,000 shares of no par value common stock in exchange of land valued $1,827,000

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Answer 5

Chapter 13, Problem 4QS

To determine

Concept Introduction:

Types of Stocks:

These are two types of the share capital of a company. Common Stock represents the Common shares issued to the shareholders and preferred stock represents the preference shares issued. Preference shares are given preference in payment of dividends and repayment of capital. Common shareholders get the inbuilt right to vote in decisions of the company and a preference shareholders generally do not get this right but they may get voting rights with special provisions.

Issuance of Common Stock: Common Stock may be issued at par or stated value. In case the issue price is more than the par or stated value, the shares are called to be issued at a premium and in case the issue price is less than the par or stated value, the shares are called to be issued at discount. Common stocks may also be issued at no par or stated value, in such case there shall be no premium or discount recorded on the issue of shares.

Requirement-a:

To Prepare: The Journal entry to record the issuance of 63,000 shares of no par value common stock at $29 cash per share.

To determine

Requirement-b:

To Prepare: The Journal entry to record the issuance of 63,000 shares of no par value common stock in exchange of land valued $1,827,000

Answer 6

Chapter 13, Problem 4QS

To determine

Concept Introduction:

Types of Stocks:

These are two types of the share capital of a company. Common Stock represents the Common shares issued to the shareholders and preferred stock represents the preference shares issued. Preference shares are given preference in payment of dividends and repayment of capital. Common shareholders get the inbuilt right to vote in decisions of the company and a preference shareholders generally do not get this right but they may get voting rights with special provisions.

Issuance of Common Stock: Common Stock may be issued at par or stated value. In case the issue price is more than the par or stated value, the shares are called to be issued at a premium and in case the issue price is less than the par or stated value, the shares are called to be issued at discount. Common stocks may also be issued at no par or stated value, in such case there shall be no premium or discount recorded on the issue of shares.

Requirement-a:

To Prepare: The Journal entry to record the issuance of 63,000 shares of no par value common stock at $29 cash per share.

Answer 7

Chapter 13, Problem 4QS

To determine

Concept Introduction:

Types of Stocks:

These are two types of the share capital of a company. Common Stock represents the Common shares issued to the shareholders and preferred stock represents the preference shares issued. Preference shares are given preference in payment of dividends and repayment of capital. Common shareholders get the inbuilt right to vote in decisions of the company and a preference shareholders generally do not get this right but they may get voting rights with special provisions.

Issuance of Common Stock: Common Stock may be issued at par or stated value. In case the issue price is more than the par or stated value, the shares are called to be issued at a premium and in case the issue price is less than the par or stated value, the shares are called to be issued at discount. Common stocks may also be issued at no par or stated value, in such case there shall be no premium or discount recorded on the issue of shares.

Requirement-a:

To Prepare: The Journal entry to record the issuance of 63,000 shares of no par value common stock at $29 cash per share.

Answer 8

To determine

Requirement-b:

To Prepare: The Journal entry to record the issuance of 63,000 shares of no par value common stock in exchange of land valued $1,827,000

Answer 9

To determine

Requirement-b:

To Prepare: The Journal entry to record the issuance of 63,000 shares of no par value common stock in exchange of land valued $1,827,000

Answer 10

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Answer 11

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Answer 12

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Answer 13

Ch. 13 - Prob. 1DQ Ch. 13 - Prob. 2DQ Ch. 13 - Prob. 3DQ Ch. 13 - Prob. 4DQ Ch. 13 - Prob. 5DQ Ch. 13 - Prob. 6DQ Ch. 13 - Prob. 7DQ Ch. 13 - Prob. 8DQ Ch. 13 - Prob. 9DQ Ch. 13 - Prob. 10DQ

Requirement-b: To Prepare: The Journal entry to record the issuance of 63,000 shares of no par value common stock in exchange of land valued $1,827,000

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Chapter 13 Solutions

Requirement-b:

To Prepare: The Journal entry to record the issuance of 63,000 shares of no par value common stock in exchange of land valued $1,827,000