Maxville Company issues 250 shares of $50 par preferred stock and 1,000 shares of $10 par common stock in a “package” sale on December 31. Total proceeds received amount to $39,700. Required:   Record the transaction for each independent assumption shown:   1. The common stock has a current market value of $19 per share; the current market value of preferred stock is not known. 2. The common stock and the preferred stock have a current market value per share of $22 and $62, respectively.

Q: Maxville Company issues 300 shares of $40 par preferred stock and 1,000 shares of $10 par common…

A: The lump sum value received for shares issued is allocated on the basis of market value.

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

A: Calculate the total allocation. Journal entry:

Q: Oregon Outfitters issues 1,700 shares of $1 par value common stock at $19 per share. Later in the…

A: The extra cash received is credited to the Paid-in capital in excess of par Account.

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: 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: At the end of its first year of operations, Mulligan Corporation has outstanding shares of 84,000…

A: Prepare the journal entry to record the issuance of stock during the year: Accounts title and…

Q: Caribbean Corporation began operations on April 1 by issuing 60,000 shares of $5 par value common…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

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: journal entry to record the issuance, how much should be recorded for Paid-in Capital in Excess of…

A: Given in the question:- 500 Common Stock * $10 per share= $5000 200 Preferred Stock * $ 20 per…

Q: (a) Prepare the journal entry for the issuance assuming the par value of the common stock was $5 and…

A:

Q: On September 12, 2,000 shares of Aspen Company are acquired at a price of $50 per share plus a $200…

A: Journal entry refers to the recording made by the business in the books of accounts, of all the…

Q: On January 1, Tesla had 40,000 shares of $10 par value common stock issued and outstanding. All…

A: A treasury stock means a reacquired stock which is repurchased by the organization or company,…

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

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

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: Maxville Company issues 300 shares of $50 par preferred stock and 1,000 shares of $10 par common…

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

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: At the end of its first year of operations, Mulligan Corporation has outstanding shares of 110,000…

A: The company issues preferred and common securities to raise capital. A fixed dividend is paid on…

Q: On July 1, TruData Company issues 11,400 shares of its common stock with a $5 par value and a $40…

A: Goodwill at the time of acquisition means amount paid for acquisition which is over and above fair…

Q: On January 23, 10,000 shares of Tolle Company are acquired at a price of $30 per share plus a $100…

A: Stock investments: Stock investments are equity securities which claim ownership in the investee…

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: Sunland Company purchased from its stockholders 5,300 shares of its own previously issued stock for…

A: Journal entry records the transactions of the business into the books of accounts of the entity and…

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…

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

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

Q: The journal entry to record the purchase of the treasury shares on February 1 would include a

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

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: 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: Caswell Corporation is authorized to issue 10,000 shares of common stock on December 31. It sells…

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

Q: On February 22, Stewart Corporation acquired 3,300 shares of the 115,000 outstanding shares of…

A: Equity share capital refers to the capital raised by a company by offering shares. The investors who…

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: On January 1, Vermont Corporation had 43,000 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 on…

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.

Q: The Sneed Corporation issues 11,100 shares of $54 par preferred stock for cash at $62 per share. The…

A: The company can raise funds from different sources like by issuing common stock, issuing preferred…

Q: Sunland Company has issued 1,900 shares of common stock and 380 shares of preferred stock for a lump…

A: Stocks are issued at fair value. But, they should record as “par value for share capital” and…

Q: a. Prepare all of the necessary journal entries to record the events described above.b. Prepare the…

A: Requirement a:   Pass all of the necessary journal entries to record the events.

Q: On January 23, 15,000 shares of Tolle Company are acquired at a price of $25 per share plus a $145…

A: Introduction: A journal entry is used to disclose a business deal in a company's accounting records.…

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: On January 1, Lorain Corporation had 2,000 shares of $5 par common stock authorized and outstanding.…

A: Treasury stock: Treaseury stock are the shares which are bought back by the company from the open…

Q: On February 14, Marine Company reacquired 7,500 shares of its common stock at $30 per share. On…

A: Treasury stock is the reacquired shares by the company. The company has the right to reissue these…

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: 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: 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: Culver Corporation purchased from its stockholders 6,000 shares of its own previously issued stock…

A: Account Titles and Explanation Debit Credit Treasury Stock $306,000               Cash (6000*51)…

Q: Maxville Company issues 350 shares of $40 par preferred stock and 1,000 shares of $5 par common…

A: The answer is as follows

Q: Ravonette Corporation issued 300 shares of $10 par value common stock and 100 shares of $50 par…

A:

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 July 1, TruData Company issues 11,400 shares of its common stock with a $5 par value and a $40…

A: Goodwill is the amount paid for acquisition which is over and above fair market value of assets…

Q: On September 1, Ziegler Corporation had 56,000 shares of $5 par value common stock, and $168,000 of…

A: The facts mentioned in the question are as follows: Ziegler Corp has 56,000 shares at $5 par value…

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

A: Workings:

Q: Sneed Corporation issues 11,700 shares of $55 par preferred stock for cash at $60 per share. The…

A: Stocks: Stocks are shares in the ownership of the company. It represents the capital raised by a…

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.