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Chp 15 Exercises and Problems Solutions

# Chp 15 Exercises and Problems Solutions - EXERCISE...

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EXERCISE 15-2 (15–20 minutes) Jan. 10 Cash (80,000 X \$5) ......................................... 400,000 Common Stock (80,000 X \$1) ................. 80,000 Paid-in Capital in Excess of Stated Value—Common Stock ....................... 320,000 (80,000 X \$4) Mar. 1 Cash (5,000 X \$108) ....................................... 540,000 Preferred Stock (5,000 X \$100) ............... 500,000 Paid-in Capital in Excess of Par Value—Preferred Stock ....................... 40,000 (5,000 X \$8) April 1 Land ................................................................. 80,000 Common Stock (24,000 X \$1) ................. 24,000 Paid-in Capital in Excess of Stated Value—Common Stock ....................... 56,000 (\$80,000 – \$24,000) May 1 Cash (80,000 X \$7) ......................................... 560,000 Common Stock (80,000 X \$1) ................. 80,000 Paid-in Capital in Excess of Stated Value—Common Stock ....................... 480,000 (80,000 X \$6) Aug. 1 Organization Expense ................................... 50,000 Common Stock (10,000 X \$1) ................. 10,000 Paid-in Capital in Excess of Stated

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Value—Common Stock ....................... 40,000 (\$50,000 – \$10,000)
EXERCISE 15-2 (Continued) Sept. 1 Cash (10,000 X \$9) ......................................... 90,000 Common Stock (10,000 X \$1) ................. 10,000 Paid-in Capital in Excess of Stated Value—Common Stock ....................... 80,000 (10,000 X \$8) Nov. 1 Cash (1,000 X \$112) ....................................... 112,000 Preferred Stock (1,000 X \$100) ............... 100,000 Paid-in Capital in Excess of Par Value—Preferred Stock ....................... 12,000 (1,000 X \$12) EXERCISE 15-5 (10–15 minutes) (a) FMV of Common (500 X \$165) \$ 82,500 FMV of Preferred (100 X \$230) 23,000 \$105,500 Allocated to Common: \$82,500/\$105,500 X \$100,000 \$ 78,199 Allocated to Preferred: \$23,000/\$105,500 X \$100,000 21,801 Total allocation (rounded to nearest dollar) \$100,000 Cash ........................................................................... 100,000 Common Stock (500 X \$10) ............................... 5,000 Paid-in Capital in Excess of Par— Common (\$78,199 – \$5,000) .......................... 73,199 Preferred Stock (100 X \$100) ............................ 10,000 Paid-in Capital in Excess of Par—

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Preferred (\$21,801 – \$10,000) ....................... 11,801 (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 ...................................................
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