Quiz chap15 - 4) The company issues 500 shares of common...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Quiz Chapter 15 Accounting 3312 Spring 2011 Name: __________________________ 1. Equity transactions. Presented below is information related to Lowary Company: 1) The company is granted a charter that authorizes issuance of 40,000 shares of $50 par value preferred stock and 30,000 shares of no-par common stock. 2) 10,000 shares of common stock are issued to the founders of the corporation for land valued by the board of directors at $600,000. The board establishes a stated value of $5 a share for the common stock. 3) 10,000 shares of preferred stock are sold for cash at $70 per share.
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 4) The company issues 500 shares of common stock to its attorneys for costs associated with starting the company. At that time, the common stock was selling at $55 per share. Instructions Prepare the general journal entries necessary to record these transactions. No entries land 600000 Common stock 50000 Additional paid-in capital 550000 cash 700000 Preferred stock 500000 Additional paid-in capital 200000 AP 27500 Common stock 2500 Additional paid-in capital 25000 Page 1...
View Full Document

This note was uploaded on 03/27/2012 for the course ACCT 3321 taught by Professor Chambers during the Spring '09 term at Texas A&M University, Corpus Christi.

Ask a homework question - tutors are online