Caswell Corporation is authorized to issue 10,000 shares of common stock on December 31. It sells 5,000 shares at $16 per share. Required:   Record the sale of the common stock, given the following independent assumptions:   1. The stock has a par value of $10 per share. 2. The stock is no-par stock, but the board of directors has assigned a stated value of $8 per share. 3. The stock has no-par and no stated value.

Q: Vincent Corporation has 91,000 shares of $105 par common stock outstanding. On June 30, Vincent…

A: Introduction: A journal entry is a record of a business arrangement in the accounting system of a…

Q: Sage Corporation has outstanding 363,000 shares of $10 par value common stock. The corporation…

A: The term "stock dividend" refers to a payout made in the form of additional shares to current…

Q: Assume that Bennington Corporation has 2,000,000 shares of $1 par value common stock issued and…

A: No journal entry is made for stock split.

Q: The Tornado Truck Body Company decides to repurchase 10,000 shares of its common stock on January…

A: The repurchase of treasury stock will be done at the amount paid to acquire it.

Q: Incentive Corporation was authorized to issue 12,000 shares of common stock, each with a $1…

A:

Q: Riverbed Inc. issues 500 shares of $10 par value common stock and 100 shares of $100 par value…

A: Journal entries refer to the process of systematic documentation of the financial transactions of a…

Q: Rodriguez Corporation issues 10,000 shares of its common stock for $82,300 cash on February 20.…

A: Common Stock is a ledgers that represents amount raised by the organization by issuing shares to the…

Q: Pina Colada Corporation issued 1,900 shares of stock. Prepare the entry for the issuance under the…

A: The common shares refer to the shares issued to investors and business owners and the share is proof…

Q: Accepts a subscription contract to 7,000 shares of common stock at $42 per share and receives a 30%…

A:

Q: Righty, Inc., entered into a stock subscription contract that called for the purchase by investors…

A: No of shares subscribed = 10,000 shares Par value of common stock = 10,000 x $ 10 = $100,000…

Q: Concordia Corporation has 96,900 common shares that have been issued. It declares a 4% stock…

A: Dividends are paid in two types Stock dividends and Cash dividends. Stock dividend means a payment…

Q: Emma Consulting had previously purchased 2,439 shares of treasury stock for $8 per share.  Emma then…

A: Solution: Cost of treasury stock sold = 935*$8 = $7,480

Q: On 1/1/2020 Coopers issued 20 restricted stock shares when the stock was selling for $22. The stock…

A: 1.Restricted Stock Shares Issued to Regular Employees:Date: January 1, 2020Coopers issues 20…

Q: On June 13, the board of directors of Siewert Incorporated declared a 2-for-1 stock split on its 60…

A: In order to enhance the stock's liquidity, companies may increase the number of shares outstanding…

Q: night Corp. holds 20,000 shares of its $10 par common stock as treasury stock reacquired in Year1…

A: Treasury stock is that part of the common stock of the company that is re-purchased by the issuing…

Q: Rodriguez Corporation issues 11,000 shares of its common stock for $132,100 cash on February 20.…

A: The company can raise funds through various methods. Some of them are, by way of issuing common…

Q: Osage Corporation issued 2,000 shares of stock. Instructions Prepare the entry for the issuance…

A: Journal entries are the reporting of the daily business transactions in the books of accounts. These…

Q: Ayayai Corporation issued 2,000 shares of $10 par value common stock upon conversion of 1,000 shares…

A: Solution:- Preparation of journal entries as follows under:- Introduction:- The convertible shares…

Q: The common stock of Bridgeport Inc. is currently selling at $121 per share. The directors wish to…

A: The corporation sometimes prefers issuing stock split schemes or stock dividend for controlling the…

Q: Maxville Company issues 300 shares of $50 par preferred stock and 1,000 shares of $10 par common…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: Sunshine Clothing Company issues 1,000 shares of $1 par value common stock at $30 per share. Later…

A: When a company purchases its own stock, it is referred to as treasury stock. This repurchase can…

Q: Oriole Corporation has outstanding 489,000 shares of $10 par value common stock. The corporation…

A: Stock Dividend: A "stock dividend" is an award given by a firm to its existing shareholders that…

Q: Rodriguez Corporation issues 15,000 shares of its common stock for $312,700 cash on February 20.…

A: The objective of the question is to prepare journal entries for the issuance of common stock under…

Q: Vienna Corporation has 23,000 shares of $70 par common stock outstanding. On August 2, Vienna…

A: Stock dividends are the dividends issued by the company to give out bonus stock to the existing…

Q: When Crossett Corporation was organized in January Year 1, it immediately issued 5,500 shares of $51…

A: Lets understand the basics.Shares are basically divided into two types which are,(1) Common stock(2)…

Q: Vaughn Inc. issues 500 shares of $10 par value common stock and 100 shares of $100 par value…

A: Journal entries are the primary reporting of the business transactions in the books of accounts.…

Q: Vincent Corporation has 96,000 shares of $105 par common stock outstanding. On June 30, Vincent…

A: Introduction: Journal: Recording of a business transactions in a chronological order. First step in…

Q: Pharoah Corporation has outstanding 420,000 shares of $10 par value common stock. The corporation…

A: Stock dividend means a payment given to the shareholders in shares instead of a cash payment. Stock…

Q: On June 13, the board of directors of Siewert Inc. declared a 2-for-1 stock split on its 40 million,…

A: The stock split would not affect the overall capital of the company. It increases the number of…

Q: Flint Corporation issued 1,900 shares of stock. Prepare the entry for the issuance under the…

A: Solution: Journal entry : Date                                General Journal Debit $ Credit $…

Q: Metlock Corporation issued 1,800 shares of $10 par value common stock upon conversion of 900 shares…

A: Conversion of preferred stock into common stock is an option for the stockholders offered by the…

Q: Swifty Corporation issued 600 shares of no-par common stock for $7,600. Prepare Swifty’s journal…

A: The organization can raise funds for the operation song integrity by issuing common stock, preferred…

Q: Sunland Company has issued 1,900 shares of common stock and 380 shares of preferred stock for a lump…

A: Stocks are issued at fair value. But, they should record as “par value for share capital” and…

Q: Caswell Corporation is authorized to issue 10,000 shares of common stock on December 31. It sells…

A: The objective of the question is to record the sale of common stock for Caswell Corporation, given…

Q: Lily Corporation issued 5,400 shares of stock. Prepare the entry for the issuance under the…

A: S.No.      Particulars.           Debit($)     Credit($) A).           Cash.…

Q: (a) The stock had a par value of $5.25 per share and was issued for a total of $46,500. (b) The…

A: A journal entry is a record of a company's business activity that is retained in the company's…

Q: Vincent Corporation has 93,000 share of $100 par common stock outstanding. On June 30, Vincent…

A: The stock dividend has just transferred from retained earnings to Paid in Capital. There is not any…

Q: (a) On January 31, the board of directors issues a requirement to purchase 5,000 shares of its…

A: Particulars Debit Credit a       Jan 31 Treasury Stock 110000             Cash   (5000*22)…

Q: Maxville Company issues 250 shares of $50 par preferred stock and 1,000 shares of $10 par common…

A: Journal entries are the basic method for recording financial transactions in the books of accounts.…

Q: Maxville Company issues 250 shares of $50 par preferred stock and 1,000 shares of $10 par common…

A: Market Value = No. of shares x market value per share Common Stock = $ 22 * 1000 Shares = $ 22,000…

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.