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.
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.
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter15: Shareholders’ Equity: Capital Contributions And Distributions
Section: Chapter Questions
Problem 15E
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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.
Required:
1. | What was the separate market value of the preferred stock on the date of the sale? |
2. | What |
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