Su06Ch15_Solutions

Su06Ch15_Solutions - 15-1 CHAPTER 15 Stockholders’ Equity...

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Unformatted text preview: 15-1 CHAPTER 15 Stockholders’ Equity 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 Value—Common Stock ................................. 40,000 ($50,000 – $10,000) *(In the past, these costs would have been charged to Organization Costs) 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) 15-2 EXERCISE 15-5 (10-15 minutes) (a) FMV of Common (500 X $165) $ 82,500 FMV of Preferred (100 X $230) 23,000$105,500Allocated to Common: $82,500/$105,500 X $100,000 $ 78,199 Allocated to Preferred: $23,000/$105,500 X $100,000 21,801Total allocation (rounded to whole dollars) $100,000Cash ...................................................................................... 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— Preferred ($21,801 – $10,000).................................. 11,801 (b) Lump-sum receipt $100,000 Allocated to common (500 X $170) 85,000Balance allocated to preferred $ 15,000Cash ...................................................................................... 100,000 Common Stock.............................................................. Common Stock....
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Su06Ch15_Solutions - 15-1 CHAPTER 15 Stockholders’ Equity...

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