Caswell Corporation is authorized to issue 10,000 shares of common stock on December 31. It sells 5,000 shares at $16 per share. Required:   Record the sale of the common stock, given the following independent assumptions:   1. The stock has a par value of $10 per share. 2. The stock is no-par stock, but the board of directors has assigned a stated value of $8 per share. 3. The stock has no-par and no stated value.

Q: Charles Austin of the controller's office of Coronado Corporation was given the assignment of…

A: Convertible preferred stock is the kind of preferred stock, which provides the holder option to…

Q: Vincent Corporation has 91,000 shares of $105 par common stock outstanding. On June 30, Vincent…

A: Introduction: A journal entry is a record of a business arrangement in the accounting system of a…

Q: California Surf Clothing Company issues 1,000 shares of $1 par value common stock at $27 per share.…

A: Treasury stock: Shares which are bought back by the company from the open market are Treasury stock.…

Q: On June 1, Riverbed Inc. issues 3,250 shares of no-par common stock at a cash price of $10 per…

A: Date Accounts Title and explanation Debit Credit June 1 Cash (3250*10) $32,500           Common…

Q: [The following information applies to the questions displayed below.] The charter of Vista West…

A: Authorized share refers to the number of shares that is legally allowed to be issued by a…

Q: Anslo Fabricating, Inc. is authorized to issue 10,000,000 shares of $5 stated value common stock.…

A: Formula: Cash received = Number of shares issued x Issue price per share

Q: Prior to June 1, Sandler Company had no treasury stock transactions. Then, on June 1, the company…

A: Treasury stock: It refers to the shares that are reacquired by the corporation that are already…

Q: Rodriguez Corporation issues 19,000 shares of its common stock for $152,000 cash on February 20.…

A: Common stock: It refers to the security that provides the holder with the ownership rights in a…

Q: Accepts a subscription contract to 7,000 shares of common stock at $42 per share and receives a 30%…

A:

Q: Smart Corp. was organized on Jan. 1 with authorization of 10,000 shares of $5 preferred stock, $100…

A: The entry for preferred stock issued   Date Particular Debit ($) Credit ($) Dec 31 Cash 20,000…

Q: Splish Brothers Inc. purchased from its stockholders 6,000 shares of its own previously issued stock…

A: Treasury stock: Shares which are bought back by the company from the open market but not retired…

Q: California Surf Clothing Company issues 1,000 shares of $1 par value common stock at $18 per share.…

A: Treasury stocks are repurchased owned shares by the company. The firm has the power to reissue these…

Q: Sunshine Corp. was organized on Jan. 1 with authorization of 20,000 shares of $5 preferred stock,…

A: Shares refer to the market security that the company issue to raise funds from the market by…

Q: Rinehart Corporation purchased from its stockholders 5,300 shares of its own previously issued stock…

A: Purchase price of each share = $275,600/5300                                                = $ 52

Q: Swarten Corporation issued 600 shares of no-par common stock for $8,200. Prepare Swarten's journal…

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

Q: night Corp. holds 20,000 shares of its $10 par common stock as treasury stock reacquired in Year1…

A: Treasury stock is that part of the common stock of the company that is re-purchased by the issuing…

Q: James Incorporated is authorized to issue 5,000,000 shares of $1 par value common stock. In its…

A: When common stock is issued at price higher the par value , then we need to debit cash as cash is…

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: Black Diamond Inc. issues 2,500 shares of $1 par valuecommon stock and 1,000 shares of $50 par value…

A: a. Prepare journal entries for issuance of common shares and preferred shares when market value of…

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

A: Preferred Stock = No. of shares x Par value per share = 7,000 shares x $100 = $700,000

Q: On June 1, Sheffield Inc. issues 3,350 shares of no-par common stock at a cash price of $7 per…

A: Paid in capital in excess of stated value = (Par value per share - Stated value per share) x No. of…

Q: 2. Homework Chapter 10

A: In Stock split offers are given to the present investor's in extent of their current offers. It is…

Q: ingra Corporation was organized in March. It is authorized to issue 600,000 shares of $100 par value…

A: journal entries: Date            particulars Debit Credit Mar 1 Cash [10,000 x $115] $1,150,000…

Q: Rowlands Corporation has 100,000 shares of $40 par value preferred stock authorized. During the…

A: Preferred stock: These are the shares which has a preference over common stock holders in the…

Q: Sunshine Corp. was organized on Jan. 1 with authorization of 20,000 shares of $5 preferred stock,…

A: Journal is the book where transactions are originally recorded.  Journal entry: A journal entry is…

Q: The entry to record the above transaction would include a a. debit to Cash for $85,000 b. credit to…

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

Q: On June 1, Noonan Inc. issues 3,550 shares of no-par common stock at a cash price of $9 per share.…

A: All the transactions of an entity are properly accounted by making corresponding journal entries in…

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

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: Spring Company is authorized to issue 500,000 shares of $1 par value common stock. In its first…

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

Q: On May 10, Blue Spruce Corporation issues 3,050 shares of $10 par value common stock for cash at $20…

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

Q: Splish Brothers Inc. purchased from its stockholders 5,400 shares of its own previously issued stock…

A: Purchase price per share = Total amount paid / No. of shares purchased = $270,000/5400 shares = $50…

Q: Sunshine Corp. was organized on Jan. 1 with authorization of 20,000 shares of $5 preferred stock,…

A: Preferred stock dividend = 8000 shares × $5 = $40,000

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

A: Paid in capital excess of par- preferred stock on January 2 nd = 5000 shares ×$10 = $50000

Q: When Wisconsin Corporation was formed on January 1, the corporate charter provided for 94,200 shares…

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

Q: On February 13, Solo Inc. reacquires 50,000 shares of its $1 par value common stock at the current…

A: Financial statements are the recording of business transactions in the various statements which are…

Q: Vienna Corporation has 31,000 shares of $90 par common stock outstanding. On June 8, Vienna…

A: Stock Dividend: 'Stock dividend' is a dividend paid in the form of stocks. The stock dividend does…

Q: On May 27, Mama Mia Inc. reacquired 78,000 shares of its common stock at $8 per share. On August 3,…

A: Treasury stock are shares reacquired by the company. Treasury stock is shown at last in the…

Q: Lodi Company is authorized to issue 100,000 shares of no-par, $6 stated-value common stock and…

A: Journal entries in the books of LODI COMPANY: DATE/NO PARTICULARS DEBIT $ CREDIT $ 1. Cash dr (…

Q: Rodriguez Corporation issues 6,000 shares of its common stock for $95.300 cash on February 20.…

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

Q: California Surf Clothing Company issues 1,000 shares of $1 par value common stock at $23 per share.…

A: Treasury stock: Shares which are bought back by the company from the open market are called…

Q: Lodi Company is authorized to issue 100,000 shares of no-par, $6 stated-value common stock and…

A: Journal entries in the books of LODI COMPANY: DATE/NO PARTICULARS DEBIT $ CREDIT $ 1. Cash dr…

Q: The Vogel and Wallis Corporation is authorized to issue 15,000 shares of 10%, $50 par value…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: On January 1, Vermont Corporation had 46,400 shares of $9 par value common stock issued and…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

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

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: On June 1, Larkspur, Inc. issues 1,100 shares of no-par common stock at a cash price of $8 per…

A: Total amount received = No. of shares issued x Issue price per share = 1,100 shares x  $8 per share…

Q: On January 1, Vermont Corporation had 40,000 shares of $10 par value common stock issued and…

A: Treasury stock: Shares which are bought back by the company from the open market but not retired…

Q: The Vogel and Wallis Corporation is authorized to issue 15,000 shares of 10%, $50 par value…

A: 1. AMOUNT OF PREFERRED STOCK : = $5,000 X $55  = $275,000   2. AMOUNT OF COMMON STOCK : = $16,000 X…

Q: Lodi Company is authorized to issue 100,000 shares of no-par, $6 stated-value common stock and…

A: Step 1 Journal is the part of book keeping.

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…

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.