the dusty corporation began business on January 1, 2020. the corporate charter authorizes issuance of 100,000 shares of .01 par value common stock and 10,000 shares of $1 par value, 10% cumulative preferred stock. on july 1, 2020, dusty issued 30,000 shares of common stock in exchange for three years of rent on a retail location. the cash rental price is $4,200 per month and the rental period begins july 1. How should dusty adjust its financial statement for the issuance of the shares on July 1?

the dusty corporation began business on January 1, 2020. the corporate charter authorizes issuance of 100,000 shares of .01 par value common stock and 10,000 shares of $1 par value, 10% cumulative preferred stock. on july 1, 2020, dusty issued 30,000 shares of common stock in exchange for three years of rent on a retail location. the cash rental price is $4,200 per month and the rental period begins july 1. How should dusty adjust its financial statement for the issuance of the shares on July 1?

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 4MC

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