EXERCISE 15-5 - 10,000 Paid-in Capital in Excess of Par...

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EXERCISE 15-5 (10–15 minutes) (a) Fair value of Common (500 X $168). .................................... $ 84,000 Fair value of Preferred (100 X $210). .................................... 21,000 $105,000 Allocated to Common: $84,000/$105,000 X $100,000. ....... $ 80,000 Allocated to Preferred: $21,000/$105,000 X $100,000. ...... 20,000 Total allocation. ...................................................................... $100,000 Cash. .......................................................................... 100,000 Common Stock (500 X $10). .............................. 5,000 Paid-in Capital in Excess of Par— Common ($80,000 – $5,000). ......................... 75,000 Preferred Stock (100 X $100). ...........................
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Unformatted text preview: 10,000 Paid-in Capital in Excess of Par Preferred ($20,000 $10,000). ...................... 10,000 (b) Lump-sum receipt $100,000 Allocated to common (500 X $170) 85,000 Balance allocated to preferred $ 15,000 Cash. .......................................................................... 100,000 Common Stock. .................................................. 5,000 Paid-in Capital in Excess of Par Common ($85,000 $5,000). ......................... 80,000 Preferred Stock. ................................................. 10,000 Paid-in Capital in Excess of Par Preferred ($15,000 $10,000). ...................... 5,000...
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This note was uploaded on 04/22/2010 for the course ACCT ACC552 taught by Professor Hint during the Spring '09 term at Keller Graduate School of Management.

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EXERCISE 15-5 - 10,000 Paid-in Capital in Excess of Par...

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