Issue of common stock: Common stock represents equity ownership in a corporation. Common stockholders bear a higher amount of risk of loss and are also entitled to higher benefits in the company’s profits and assets. Common stock can be issued at par or at premium or discount. No par stock is recorded in the accounts at issue price. However, some states require shares to be issued at a particular value. This value is called stated value. A company cannot issue shares below the stated value. Common shares can be issued not only for cash but also in exchange of another asset or as a payment for an expense. To prepare: To prepare the journal entry issue of common stock. Given information: 1st issue: 80,000 shares at $5 per share. 2nd issue: 5,000 shares at $108 per share. 3rd issue: 24,000 shares for a land; asking price is $90,000 and fair value is $80,000. 4th issue: 80,000 shares at $7 per share. 5th issue: 10,000 shares for $50,000 attorney’s payment. 6th issue: 10,000 shares at $9 per share. 7th issue: 1,000 preferences at $112 per share. Par value: No par. Stated value: $1.

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Problem No. 1 On January 1, 2025, Manuel Cruz and Sherimae Diasalo agreed to form a partnership that will manufacture and sell biscuits. The partnership agreement specified that Cruz is to invest cash of P1,000,000 and Diasalo is to contribute land and building to serve as the office and factory of the business. The following amounts are applicable to the property of Diasalo: Acquisition Cost Fair Market Value Land Building P1,000,000 500,000 P1,500,000 850,000 During the formation, it was found out that Cruz has accounts receivable amounting to P70,000 and the partners agreed that it will be assumed by the partnership. The name of the partnership will be Fita Pan. Required: 1. Prepare journal entry to record: a. The investment of Cruz to the partnership b. The investment of Diasalo to the partnershipood relay ni 000,219 2. Prepare the statement of financial position of the partnership as of January 1, 2025 Problem No. 2 The trial balance of Cleint Lumanao Nacho Supplies on February…

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Chapter 15, Problem 2E

To determine

Issue of common stock: Common stock represents equity ownership in a corporation. Common stockholders bear a higher amount of risk of loss and are also entitled to higher benefits in the company’s profits and assets. Common stock can be issued at par or at premium or discount.

No par stock is recorded in the accounts at issue price. However, some states require shares to be issued at a particular value. This value is called stated value. A company cannot issue shares below the stated value.

Common shares can be issued not only for cash but also in exchange of another asset or as a payment for an expense.

To prepare: To prepare the journal entry issue of common stock.

Given information: 1st issue: 80,000 shares at $5 per share.

2nd issue: 5,000 shares at $108 per share.

3rd issue: 24,000 shares for a land; asking price is $90,000 and fair value is $80,000.

4th issue: 80,000 shares at $7 per share.

5th issue: 10,000 shares for $50,000 attorney’s payment.

6th issue: 10,000 shares at $9 per share.

7th issue: 1,000 preferences at $112 per share.

Par value: No par.

Stated value: $1.

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Problem No. 1 On January 1, 2025, Manuel Cruz and Sherimae Diasalo agreed to form a partnership that will manufacture and sell biscuits. The partnership agreement specified that Cruz is to invest cash of P1,000,000 and Diasalo is to contribute land and building to serve as the office and factory of the business. The following amounts are applicable to the property of Diasalo: Acquisition Cost Fair Market Value Land Building P1,000,000 500,000 P1,500,000 850,000 During the formation, it was found out that Cruz has accounts receivable amounting to P70,000 and the partners agreed that it will be assumed by the partnership. The name of the partnership will be Fita Pan. Required: 1. Prepare journal entry to record: a. The investment of Cruz to the partnership b. The investment of Diasalo to the partnershipood relay ni 000,219 2. Prepare the statement of financial position of the partnership as of January 1, 2025 Problem No. 2 The trial balance of Cleint Lumanao Nacho Supplies on February…

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