Prepare the journal entry for the issuance when the market price of the common shares is $65 each and market price of the preferred is $120 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 $85 per share.

Q: Oriole Company has issued 2,500 shares of common stock and 500 shares of preferred stock for a lump…

A: Common stock and Preference stock are two types of stock or shares that is being issued by the…

Q: B. Villarama Corporation was organized on Jan. 1, 2018. It is authorized to issue 20,000 shares of…

A: Shareholder's Equity section includes share capital, preference share capital, and retained…

Q: Item No. 8 is based on the following information: sidsy69 2970 000,001 9 Whistleblow, Inc. issued…

A: The shares issued for legal expenses or other payments, with lower par value, leads to increase…

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: Boy with luv Co. received 20,000 stocks right to subscribe for new shares at P45 per share for every…

A: Stock rights refers to the instrument which is issued through the companies for providing the…

Q: On March 31, 20x1, Budoy Co. received 10,000 stock rights from its investment in equity securities…

A: Theoretical value of rights=Market price-Subscription priceNumber of rights+1=P 80-P 604+1=P 4

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A: Premium amount is the difference between the subscription price and face value If the subscription…

Q: (Lump-Sum Sales of Stock with Preferred Stock) Dave Matthew Inc. issues 500 shares of $10 par value…

A: a. Pass necessary journal entry to record the issuance of common stock and preferred stock.

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A: Here in this question, we are required to determine the share premium of equity shares. When equity…

Q: When a company issues 36,000 shares of $4 par value common stock for $40 per share, the journal…

A: The journal entry of share issuance requires a debit to cash account and credit to share capital…

Q: B. Villarama Corporation was organized on Jan. 1, 2018. It is authorized to issue 20,000 shares of…

A: The shareholders' equity represents the equity capital held by the shareholders of the company. It…

Q: Wolmore Resources Ltd. is authorized to issue unlimited numbers of common shares, of which…

A: SOLUTION A JOURNAL COMPANY'S OFFICIAL BOOK IN WHICH ALL BUSINESS TRANSACTIONS ARE RECORDED IN…

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

A: The different shares are issued at lump sum amount, then at can be allocated to different shares…

Q: Rodriguez Corporation issues 15,000 shares of its common stock for $209,500 cash on February 20.…

A: If shares were issued at a premium then the difference between issue price and par value is…

Q: Gallery Leather has 100,000 of $5.00 Par authorized common stock and 20,000 shares issued and…

A: Total proceeds from issue of common stock = No. of common stock issued x Issue price per share =…

Q: On September 3, 2021, Mirabel Corporation issued for cash 15,000 shares of no-par ordinary shares…

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

Q: Retro Company is authorized to issue 10,000 shares of 8%, $100 par value preferred stock and 500,000…

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Q: Nash SE issues 500 shares of €10 par value ordinary shares and 100 shares of €100 par value…

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…

Q: the journal entries of the above transactions?

A: Journal entry: Journal entry is the book of original entry where first transactions are recorded in…

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A: Sno Account Titles and Explanation  Debit   Credit  Apr'2 Cash (12,000 Shares X P 17 per share)…

Q: 3. ABC Corporation is authorized to issue 80,000 ordinary shares. During the current year, the…

A: (a) Paid in capital in excess of par per share = 20 - 5 = 15 per shares

Q: Ivanhoe Corporation issued 341 shares of $10 par value common stock and 145 shares of $50 par value…

A: Journal entry to record the issuance:: Cash account Dr::$19188...      To Common stock…

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A: Requirement a:   Pass necessary journal entry to record the issuance of common stock and preferred…

Q: Smart Poly Machine issues 5,000 shares of 5%, $10 Par Value Preferred Stock for $10,000 cash,…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

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A: Share capital issue is the main source of raising the equity needed by an organization to carry out…

Q: Sheridan Corporation issued 335 shares of $10 par value common stock and 103 shares of $50 par value…

A: Given information is: Common stock shares = 335 shares  Preferred Stock shares = 103 shares

Q: Next Level Morgan Corporation issues 500 “packages” of securities for $180 per package on December…

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

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A: Given,  Par value = $50  Issue price = $85 Number of shares issued = 9,900

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

Q: On May 23, Stoltz Realty Inc. issued for cash 80,000 shares of no-par common stock (with a stated…

A: It is assumed that the requirement for this question is the preparation of the journal entries.

Q: On May 23, Stoltz Realty Inc. issued for cash 80,000 shares of no-par common stock (with a stated…

A: Common stock: These are the ordinary shares that a corporation issues to the investors in order to…

Q: At the start of 20X5, Happy Corp. had 20,000 shares of $5 par common stock issued and outstanding.…

A: Treasury stock refers to a method used by the organization to repurchase the issued stock. It is…

Q: Bashir Inc. issues 2,500 shares of $1 par value common stock and 1,000 shares of $50 par value…

A: Total market value of common stock = No. of common stock x market price per share = 2500 shares x…

Q: When a company issues 27,000 shares of $5 par value common stock for $50 per share, the journal…

A: When shares  are issued  Cash will be received. Thus cash should be debited.

Q: SHATT ALAREB CO. issues 1000 shares of $5 par value common stock and 500 shares of $50 par value…

A: Journal entry is record of financial transaction in the books of accounts maintained by an…

Q: To expand operations, Aragon Consulting issued 1,000 shares of previously unissued commonstock with…

A:

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

A: Journal entry: The record of business transactions in a chronological order with equal amounts of…

Q: BFAR Corp. was formed on June 1 with 100,000 authorized shares having a par value of P20. The…

A: when company issue share capital and shares to the shareholders there received application allotment…

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A: Delinquent: Delinquency is a situation or condition when a party has failed to pay a scheduled…

Q: The Snow Corporation issues 9,800 shares of $52 par value preferred stock for cash at $66 per share.…

A: Definition: Preferred stock: The stock that provides a fixed amount of return (dividend) to its…

Q: Elegant Co. was organized on Jan. 1, 2022. On that date, it issued 1,000,000 shares of P1.00 par…

A: Delinquent  Shares:  Stock  will become  delinquent shares  if there is a failure by the holder to…

Q: Wildhorse Co. issues 36000 shares of $50 par value preferred stock for cash at $75 per share. In the…

A: Preferred Stock Capital will be increased by = No. of shares issued x Par value per share = 36000…

Q: hester Inc. issued shares of its $6.60 par value common stock for $17.00 per share. In recording the…

A: SOLUTION- SHARES MEANS A COMPANY'S CAPITAL IS DIVIDED IN TO SMALL UNITS OF A FINITE NUMBER .EACH…

Q: On March 1, 20x5, Ria Corporation has 200,000 shares of P10 par Ordinary Shares outstanding and the…

A: A reverse stock split is the process of consolidating two or more shares into one. Under this…

Q: Wonder Sales is authorized to issue 100,000 shares of 2%, $100 par preferred stock and 1,000,000…

A: When stock is issued at a price higher than the par value, they are said to be issued at premium.…

Q: On Jan 1, Niumbus ent. issues 4,550 shares of no-par common stock at a cash price of P9 per share.…

A: Journal entries is an process of recording accounting transactions in the books of an enterprise and…

Q: Wonder Sales is authorized to issue 100,000 shares of 2%, $100 par preferred stock and 1,000,000…

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

Q: Treasury Stock, Cost Method On January 1, Lorain Corporation had 2,000 shares of $5 par common stock…

A: The financial transactions are recorded in the book initially in the journal form.

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.