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 42,500 shares of $4 par value common stock for $297,500 cash.

Question

Want to see the full answer?

Answer 1

Question

Chapter 13, Problem 5QS

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 42,500 shares of $4 par value common stock for $297,500 cash.

To determine

Requirement-b:

To Prepare: The Journal entry to record the issuance of no par value common stock for $70,000 cash.

To determine

Requirement-c:

To Prepare: The Journal entry to record the issuance of 2,000 shares of $25 par value common stock

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

correct answer

During its first year, Maple Corp. showed a $20 per-unit profit under absorption costing but would have reported a total profit of $18,000 less under variable costing. Suppose production exceeded sales by 600 units and an average contribution margin of 60% was maintained. a. What is the fixed cost per unit? b. What is the sales price per unit? c. What is the variable cost per unit? d. What is the unit sales volume if total profit under absorption costing was $220,000?

the after-tax income?

Answer 2

Question

Chapter 13, Problem 5QS

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 42,500 shares of $4 par value common stock for $297,500 cash.

To determine

Requirement-b:

To Prepare: The Journal entry to record the issuance of no par value common stock for $70,000 cash.

To determine

Requirement-c:

To Prepare: The Journal entry to record the issuance of 2,000 shares of $25 par value common stock

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 13, Problem 5QS

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 42,500 shares of $4 par value common stock for $297,500 cash.

To determine

Requirement-b:

To Prepare: The Journal entry to record the issuance of no par value common stock for $70,000 cash.

To determine

Requirement-c:

To Prepare: The Journal entry to record the issuance of 2,000 shares of $25 par value common stock

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 13, Problem 5QS

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 42,500 shares of $4 par value common stock for $297,500 cash.

To determine

Requirement-b:

To Prepare: The Journal entry to record the issuance of no par value common stock for $70,000 cash.

To determine

Requirement-c:

To Prepare: The Journal entry to record the issuance of 2,000 shares of $25 par value common stock

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 13, Problem 5QS

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 42,500 shares of $4 par value common stock for $297,500 cash.

To determine

Requirement-b:

To Prepare: The Journal entry to record the issuance of no par value common stock for $70,000 cash.

To determine

Requirement-c:

To Prepare: The Journal entry to record the issuance of 2,000 shares of $25 par value common stock

Answer 6

Chapter 13, Problem 5QS

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 42,500 shares of $4 par value common stock for $297,500 cash.

Answer 7

Chapter 13, Problem 5QS

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 42,500 shares of $4 par value common stock for $297,500 cash.

Answer 8

To determine

Requirement-b:

To Prepare: The Journal entry to record the issuance of no par value common stock for $70,000 cash.

Answer 9

To determine

Requirement-b:

To Prepare: The Journal entry to record the issuance of no par value common stock for $70,000 cash.

Answer 10

To determine

Requirement-c:

To Prepare: The Journal entry to record the issuance of 2,000 shares of $25 par value common stock

Answer 11

To determine

Requirement-c:

To Prepare: The Journal entry to record the issuance of 2,000 shares of $25 par value common stock

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. 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 no par value common stock for $70,000 cash.

Requirement-c: To Prepare: The Journal entry to record the issuance of 2,000 shares of $25 par value common stock

Want to see the full answer?

Chapter 13 Solutions

Requirement-b:

To Prepare: The Journal entry to record the issuance of no par value common stock for $70,000 cash.

Requirement-c:

To Prepare: The Journal entry to record the issuance of 2,000 shares of $25 par value common stock