Next Level Morgan Corporation issues 500 “packages” of securities for $180 per package on December 31. Each package includes 10 shares of $1 par value common stock and 2 shares of $50 par value preferred stock. The separate market value of the common stock was $8 at the time of the sale and Morgan credits the Common Stock account for $5,000 and the Additional Paid-in Capital on Common Stock account for $29,615.38.

Q: Maxville Company issues 300 shares of $40 par preferred stock and 1,000 shares of $10 par common…

A: The lump sum value received for shares issued is allocated on the basis of market value.

Q: Grouper Company has bonds payable outstanding in the amount of $350,000, and the Premium on Bonds…

A: Introduction: Preferred stock is similar to a regular stock in that it is a share in a corporation,…

Q: Elroy Corporation repurchased 3,400 shares of its own stock for $40 per share. The stock has a par…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: Sheffield Corporation is a regional company which is an SEC registrant. The corporation's securities…

A: A debenture is a type of debt security that is issued by both corporations and governments to secure…

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: V6.  On January 1, Stunt Corp. had outstanding convertible bonds with a face value of $1,000,000 and…

A: Lets understand the basics. Bond is a liability of the company but on other hand equity is a owners…

Q: Sweet Company has bonds payable outstanding in the amount of $650,000, and the Premium on Bonds…

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

Q: If the cost method is used to record treasury stock transactions, to record the sale of the 5,000…

A: Given information is: Long Co. issued 100,000 shares of  P10 par ordinary shares  for P1,200,000.…

Q: Dexter Corporation purchased from its stockholders 4,000 shares of its own previously issued stock…

A: >Treasury stock are the shares that have been purchased by the original issuing company from its…

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 May 1, Laney Company purchases 4,000 shares of its own $1 par value stock for $24,000. Which…

A: Treasury stock is the entity's own shares which are bought back or repurchased by the entity from…

Q: Badger Corporation issued 9,000 shares of its $5 par value common stock in payment for attorney…

A: Paid-in Capital in Excess of Par = Attorney services  bill value - Par Value of Common stock.

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

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

Q: Llewelyn Company purchased 3,600 shares of its own $8 par value common stock when the market price…

A: To create a journal entry, you enter transaction details into ones company's books. Your journal…

Q: January 10 Issued share rights to all outstanding ordinary shares. Five rights are needed to…

A: Share Premium Ordinary: Particulars Workings Amount Opening Balance   NIL Right Shares…

Q: On July 1, Blue Spruce Corporation purchases 460 shares of its $5 par value common stock for the…

A: Treasury shares means the share which has been buy back by the company . It will be shown as…

Q: AL - Kamel Supplies Company purchased 1200 shares of Bahwan Group shares at OR30 per share.…

A: Definition: Journal: Journal is the method of recording monetary business transactions in…

Q: On May 1, Laney Company purchases 4,000 shares of its own $1 par value stock for $24,000. On October…

A: Answer.  Treasury stock is to be recorded at cost. That is cost of purchase.  Cost of treasury stock…

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: The securities owned by Miratloces Company were held as a long-term investment. During the current…

A: S.No Particulars Amount in Dr. Amount in Cr. 1-Jan     Investment in ABC company A/c    To Bank…

Q: Iris Corporation makes an investment in 200 shares of Harolds Company’s common stock. The…

A: If an investment is purchased then there are two methods to record the investments namely, the cost…

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

A: A journal entry is a basic accounting record that is used to chronologically track financial…

Q: X Company made the following transactions: Received subscription of 10,000 preference shares with…

A: Preference shares are shares which don't have voting right but enjoys first right to receive…

Q: Maxville Company issues 350 shares of $40 par preferred stock and 1,000 shares of $5 par common…

A: The journal entries are prepared to record the transactions on regular basis. The lump sum amount…

Q: ICOT Industries issued 15 million of its $1 par common shares for $440 million on April 11. Legal,…

A: The answer is as fallows

Q: On April 16, Year 1, Rodriguez Corporation reacquired 12,000 shares of its own $10 par stock for…

A: The treasury stock includes the own shares of the company that are purchased from the shareholders.…

Q: WW Corp. resells 500 shares of its own common stock for $22 per share. WW had acquired these shares…

A: When a company issue shares in the market and due to any reasons company has the option to…

Q: Elroy Corporation repurchased 2,100 shares of its own stock for $55 per share. The stock has a par…

A: The treasury stock includes the own shares of the company repurchased from the sharesholders. The…

Q: Lancer, Inc received building with fair value of $400,000 in exchange for 30,000 shares of its $3.00…

A: The asset shall be recorded at fair value of the asset itself or fair value of the shares, whichever…

Q: Coronado Industries has issued 1,500 shares of common stock and 300 shares of preferred stock for a…

A: The issue price of the stock could be issued at par, premium or discount. If the proceed from…

Q: Grouper Company has bonds payable outstanding in the amount of $350,000, and the Premium on Bonds…

A: Grouper Company already issued 350 bonds ($350,000/$1,000). Now, each bond is converted to 20…

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

A: Common Stocks and Preferred Stocks are the form of equity issued by an organization to raise funds.…

Q: Bramble Corp. issues 670 shares of $2 par value common stock and 280 shares of $100 par value…

A: Journal: Recording of a business transactions in a chronological order.

Q: $10,000 a $200,000 bond issue convertible into 4,000 shares of common stock (par value $20). At the…

A: Bond conversion is the process of converting a bond into stock. The conversion ratio defines the…

Q: Parker Corporation has issued 2,000 shares of common stock and 400 shares of preferred stock for a…

A: Journal entry is the first stage of the accounting process.Journal entry is used to record business…

Q: WW Corp. resells 400 shares of its own common stock for $20 per share. WW had acquired these shares…

A: The treasury stock includes the shares when the company acquires its own shares back from the…

Q: Required: Prepare general journal entries for the following transactions involving short-term…

A: To compute:(a)600 shares x $50 per share = $30,000 investment costThe commission fee is expense…

Q: Fortune company had 300,000 ordinary shares outstanding on January 1, 20B. In addition on January 1,…

A:

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.