Dave Matthew Inc. issues 500 shares of $10 par value common stock and 100 shares of $100 par value preferred stock for a lump sum of $100,000. Instructions a.    Prepare the journal entry for the issuance when the market price of the common shares is $165 each and market price of the preferred is $230 each. (Round to nearest dollar.) b.    Prepare the journal entry for the issuance when only the market price of the common stock is known and it is $170 per share.

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Q: Q. question 4

A: Prepare entry for reselling the shares.

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Q: (a) Prepare the journal entry for the issuance assuming the par value of the common stock was $5 and…

A:

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Q: International Co. issues 4,000 shares of its $5 par value common stock having a fair value of $25…

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Q: A company issues 500 shares of $10 par value common stock and 200 shares of $100 par value preferred…

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A: Treasury stock is the stock which is bought back by the issuing company. It is also known as…

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A: 1. Workings

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A: Total par value of preferred stock issued = No. of shares issued x par value per share = 11,600…

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A: Journal entry is a primary entry that records the financial transactions initially.

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A: Workings:

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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.