Kieso 13th ed sol ch 15

Kieso 13th ed sol ch 15 - EXERCISE 15-2 (1520 minutes) Jan....

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EXERCISE 15-2 (15–20 minutes) Jan. 10 Cash (80,000 X $5). ........................................ 400,000 Common Stock (80,000 X $2). ................ 160,000 Paid-in Capital in Excess of Stated Value—Common Stock (80,000 X $3). ........................................ 240,000 Mar. 1 Cash (5,000 X $108). ...................................... 540,000 Preferred Stock (5,000 X $50). ................ 250,000 Paid-in Capital in Excess of Par Value—Preferred Stock (5,000 X $58). ........................................ 290,000 April 1 Land. ................................................................ 80,000 Common Stock (24,000 X $2). ................ 48,000 Paid-in Capital in Excess of Stated Value—Common Stock ($80,000 – $48,000). ............................. 32,000 May 1 Cash (80,000 X $7). ........................................ 560,000 Common Stock (80,000 X $2). ................ 160,000 Paid-in Capital in Excess of Stated Value—Common Stock (80,000 X $5). ........................................ 400,000 Aug. 1 Organization Expense. .................................. 50,000 Common Stock (10,000 X $2). ................ 20,000 Paid-in Capital in Excess of Stated Value—Common Stock
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($50,000 – $20,000). ............................. 30,000 EXERCISE 15-2 (Continued) Sept. 1 Cash (10,000 X $9). ........................................ 90,000 Common Stock (10,000 X $2). ................ 20,000 Paid-in Capital in Excess of Stated Value—Common Stock (10,000 X $7). ........................................ 70,000 Nov. 1 Cash (1,000 X $112). ...................................... 112,000 Preferred Stock (1,000 X $50). ................ 50,000 Paid-in Capital in Excess of Par Value—Preferred Stock (1,000 X $62). ........................................ 62,000 EXERCISE 15-4 (20–25 minutes) (a) (1) Unamortized Bond Issue Costs ($340,000 X $500/$850). ................................. 200,000 Cash ($850 X 9,600). .......................................... 8,160,000 Bonds Payable. .......................................... 5,000,000 Common Stock (100,000 X $5). ................. 500,000 Paid-in Capital in Excess of Par. .............. 2,860,000 Assumes bonds are properly priced and issued at par; the residual attributed to common stock has a questionable measure of fair value. EXERCISE 15-4 (Continued) Incremental method
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Lump-sum receipt (9,600 X $850). ............................. $8,160,000 Allocated to subordinated debenture (9,600 X $500). .......................................................... 4,800,000 Balance allocated to common stock. ........................ $3,360,000 Computation of common stock and paid-in capital Balance allocated to common stock. ........................ $3,360,000
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This note was uploaded on 01/28/2011 for the course ACC 3342 taught by Professor Dorata during the Spring '10 term at St. John's.

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Kieso 13th ed sol ch 15 - EXERCISE 15-2 (1520 minutes) Jan....

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