A corporation was organized on January 1 of the current year, with an authorization of 10,000 shares of $4 preferred stock, $10 par, and 50,000 shares of $10 par common stock. The following selected transactions were completed during the first year of operations: Jan. 1Issued 5,000 shares of Preferred stock at $20 per share for cash. 15Issued 200 shares of common stock at par to an attorney in payment of legal fees. The value of the stock was at the time of payment was $25 per share. Feb. 1Issued 20,000 shares of common stock in exchange for land, buildings, and equipment with fair market prices of $60,000, $20,000, and $40,000 respectively. Mar. 1Issued 2,000 shares of common stock at $16 for cash.

When shares are issued for a consideration other than cash, then fair value of shares has to be…

Answered: A corporation was organized on January…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 5MC: Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of 10 par...

See similar textbooks

Related questions

Question

A corporation was organized on January 1 of the current year, with an authorization of 10,000 shares of $4 preferred stock, $10 par, and 50,000 shares of $10 par common stock.

The following selected transactions were completed during the first year of operations:

Jan. 1	Issued 5,000 shares of Preferred stock at $20 per share for cash.

15	Issued 200 shares of common stock at par to an attorney in payment of legal fees. The value of the stock was at the time of payment was $25 per share.

Feb. 1	Issued 20,000 shares of common stock in exchange for land, buildings, and equipment with fair market prices of $60,000, $20,000, and $40,000 respectively.

Mar. 1	Issued 2,000 shares of common stock at $16 for cash.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Accounting for Current liabilities, Provisions and Contingencies

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions