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.

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.

Corporate Financial Accounting

14th Edition

ISBN:9781305653535

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter12: Corporations: Organization, Stock Transactions, And Dividends

Section: Chapter Questions

Problem 4COP: Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31,...

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Maxville Company issues 300 shares of $40 par preferred stock and 1,000 shares of $10 par common stock in a “package” sale on December 31. Total proceeds received amount to $39,100. Required: Record the transaction for each independent assumption shown: 1. The common stock has a current market value of $18 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.
Maxville Company issues 350 shares of $40 par preferred stock and 1,000 shares of $5 par common stock in a "package" sale on December 31. Total proceeds received amount to $38,600.Required: Record the transaction for each independent assumption shown: 1. The common stock has a current market value of $18 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 $21 and $61, respectively.
On January 1, Vermont Corporation had 36,300 shares of $9 par common stock issued and outstanding. All 36,300 shares had been issued in a prior period at $22 per share. On February 1, Vermont purchased 1,000 shares of treasury stock for $27 per share and later sold the treasury shares for $21 per share on March 1. The entry to journalize the purchase of the treasury shares on February 1 would include a O a. debit to a loss account for $5,000. b. credit to Treasury Stock for $27,000. c. credit to a gain account for $5,000. d. debit to Treasury Stock for $27,000.
On January 1, Vermont Corporation had 49,400 shares of $11 par value common stock issued and outstanding. All 49,400 shares had been issued in a prior period at $22 per share. On February 1, Vermont purchased 910 shares of treasury stock for $24 per share and later sold the treasury shares for $19 per share on March 1. The journal entry to record the purchase of the treasury shares on February 1 would include a debit to a loss account for $1,820. credit to a gain account for $1,820. credit to Treasury Stock for $21,840. debit to Treasury Stock for $21,840. MacBook Pro
On January 1, Vermont Corporation had 39,800 shares of $11 par value common stock issued and outstanding. All 39,800 shares had been issued in a prior period at $20 per share. On February 1, Vermont purchased 950 shares of treasury stock for $24 per share and later sold the treasury shares for $18 per share on March 1. The journal entry for the purchase of the treasury shares on February 1 would include a a.debit to a loss account for $3,800 b.credit to Treasury Stock for $22,800 c.credit to a gain account for $3,800 d.debit to Treasury Stock for $22,800
Pilsen Company issues 12% bonds with a face value of $10,000 and 600 shares of $10 par common stock in a combined sale, receiving total proceeds of $23,000 on December 31. Required: Record the transaction for each independent assumption shown: 1. The common stock has a current market value of $21 per share; the market value of the bonds is not known. 2. The common stock has a current market value of $24.50 per share; the bonds are selling at 98.
Caswell Corporation is authorized to issue 10,000 shares of common stock on December 31. It sells 8,000 shares at $16 per share. Required: Record the sale of the common stock, given the following independent assumptions: 3. The stock has no-par and no stated value.
To expand operations, Aragon Consulting issued 1,550 shares of previously unissued common stock with a par value of $1. The price for the stock was $50 per share. Required: 1-a. Complete the table below, indicating the account, amount, and direction of the effect for the stock issuance. 1-b. Prepare the journal entry for the stock issuance. 2-a. Complete the table below, indicating the account, amount, and direction of the effect for the stock issuance with a par value of $2. 2-b. Prepare the journal entry for the stock issuance, if the par value were $2 per share.
To expand operations, Aragon Consulting issued 1,000 shares of previously unissued common stock with a par value of $1. The price for the stock was $50 per share. Required: 1-a. Complete the table below, indicating the account, amount, and direction of the effect for the stock issuance. 1-b. Prepare the journal entry for the stock issuance. 2-a. Complete the table below, indicating the account, amount, and direction of the effect for the stock issuance with a par value of $2. 2-b. Prepare the journal entry for the stock issuance, if the par value were $2 per share. 1-b: Record the issuance of 1,000 shares with a $1 par value for a price of $50 per share. 2-b: Record the issuance of 1,000 shares with a $2 par value for a price of $50 per share.
McVie Corporation's stock has a par value of $2. The company has the following transactions during the year: Feb. Issued 280,000 shares at $5 share. 28 Jun. 7 Issued 94,000 shares in exchange for equipment with a clearly determined value of $205,000. Sep. Purchased 2,400 shares of treasury stock at $7 per share. 19 Prepare the journal entries to record the transactions. If an amount box does not require an entry, leave it blank. Feb. 28 Jun. 7 Sep. 19 Additional Paid-in Capital from Common Stock Building Cash Land Treasury Stock III III II III III II
Nexis Corp. issues 1,960 shares of $11 par value common stock at $15 per share. When the transaction is recorded, what credit entry or entries are made? a.Common Stock $29,400. b.Common Stock $21,560 and Paid-in Capital in Excess of Par Value $7,840. c.Common Stock $7,840 and Retained Earnings $21,560. d.Common Stock $21,560 and Paid-in Capital in Excess of Stated Value $7,840.
McVie Corporation’s stock has a par value of $2. The company has the following transactions during the year: Feb. 28 Issued 340,000 shares at $4 share. Jun. 7 Issued 95,000 shares in exchange for equipment with a clearly determined value of $206,000. Sep. 19 Purchased 2,100 shares of treasury stock at $6 per share. Prepare the journal entries to record the transactions. If an amount box does not require an entry, leave it blank. Feb. 28 Jun. 7 Sept. 19

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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.