Concept explainers
Multiple-Choice Questions on Reported Balances [AICPA Adapted]
Select the correct answer for each of the following questions.
2. On January 1, 20X1, Portland Corporation issued 10,000 shares of common stock in exchangefor all of Stockton Corporation’s outstanding stock. Condensed balance sheets of Portlandand Stockton immediately before the combination follow:
Portland’s common stock had a market price of $60 per share on January 1, 20X1. The marketprice of Stockton’s stock was not readily determinable. The fair value of Stockton’s net identifiable assets was determined to be $570,000. Portland’s investmentin Stockton’s stock will bestated in Portland’s balance sheet immediately after the combination in the amount of
a. $350,000.
b. $500,000.
c. $570,000.
d. $600,000.
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ADV.FIN.ACCT. CONNECT+PROCTORIO PLUS
- Your answer is partially correct. Bridgeport Corporation issued 384 shares of $10 par value common stock and 144 shares of $50 par value preferred stock for a lump sum of $19,872. The common stock has a market price of $20 per share, and the preferred stock has a market price of $100 per share. Prepare the journal entry to record the issuance. (Round intermediate calculations to 6 decimal places, e.g. 0.546872 and final answers to 0 decimal places, e.g., 1,520. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Cash Common Stock Paid-in Capital in Excess of Par - Common Stock Preferred Stock Paid-in Capital in Excess of Par - Preferred Stock Debit 19872 Credit 3840 7200arrow_forwardRequired information Skip to question [The following information applies to the questions displayed below.]Incentive Corporation was authorized to issue 12,000 shares of common stock, each with a $2 par value. During its first year, the following selected transactions were completed: Issued 6,200 shares of common stock for cash at $22 per share. Issued 2,200 shares of common stock for cash at $25 per share. Prepare the journal entry required for each of these transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)arrow_forwardRequired information [The following information applies to the questions displayed below.] Clothing Frontiers began operations on January 1 and engages in the following transactions during the year related to stockholders' equity. L January 1 Issues 600 shares of common stock for $35 per share.. April 1 Issues 100 additional shares of common stock for $39 per share. Required: 1. Record the transactions, assuming Clothing Frontiers has no-par common stock. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list No 1 2 Date January 01 April 01 1 View journal entry worksheet Cash 2 Date January 01 Common Stock Cash January 1 Issues 600 shares of common stock for $35 per share. April 1 Issues 100 additional shares of common stock for $39 per share.. Record entry General Journal Common Stock Record the issuance of 600 shares Note: Enter debits before credits. Required information [The following…arrow_forward
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