On July 1, year 7, Wing Corporation issued for 525,000 a total of 5,000 shares of 100 par,10 noncumulative preferred stock ,together with one detachable stock warrant for each share of preferred stock issued. Each warrant contained a right to acquire one share of wing's 10 par common stock for K15 a share. The market price of the warrants on July 1, year 7, was K2.50 a warrant. On October 31,year 7,when the market price of the common stock was K 19 a share and a market price of the warrants was K3 warrant, 4,000 rights were exercised. Prepare a journey entry for Wing Corporation to record the exercised of the rights and the issuance of the common stock.

On July 1, year 7, Wing Corporation issued for 525,000 a total of 5,000 shares of 100 par,10 noncumulative preferred stock ,together with one detachable stock warrant for each share of preferred stock issued. Each warrant contained a right to acquire one share of wing's 10 par common stock for K15 a share. The market price of the warrants on July 1, year 7, was K2.50 a warrant. On October 31,year 7,when the market price of the common stock was K 19 a share and a market price of the warrants was K3 warrant, 4,000 rights were exercised. Prepare a journey entry for Wing Corporation to record the exercised of the rights and the issuance of the common stock.

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

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 4RE: Sun Corporation issues 500 shares of 8 par common stock for a patent. The stock is currently selling...

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