Student Notes, Equity(18)

Primal rage corporation issued 300 shares of 10 par

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) Primal Rage Corporation issued 300 shares of $10 par value common  stock and 100 shares of $50 par value preferred stock for a lump sum of $14,200.  The common stock has a market value of $20 per share, and the value of the  preferred stock is  unknown Corporate Capital Corporate Capital Corporate Capital Corporate Capital
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Chapter 18-10 Corporate Capital Corporate Capital Corporate Capital Corporate Capital ( ( Variation Variation ) Primal Rage Corporation issued 300 shares of $10 par value common  stock and 100 shares of $50 par value preferred stock for a lump sum of $14,200.  The common stock has a market value of $20 per share, and the value of the  preferred stock is  unknown
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Chapter 18-11 Stock Issued in Noncash Transactions The general rule: Companies should record stock issued  for services or property other than cash at either the:  fair value of the stock issued or  fair value of the noncash consideration received,  whichever is more clearly determinable (seen this before?). Corporate Capital Corporate Capital Corporate Capital Corporate Capital
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Chapter 18-12 Corporate Capital Corporate Capital Corporate Capital Corporate Capital April 1   Issued 24,000 shares of common stock for land. The asking price of  the land was $90,000; the fair market value of the land was $80,000. Kathleen Battle Corporation was organized on January 1, 2007. It is  authorized to issue 500,000 shares of no par common stock with a stated value  of $1 per share.   Prepare the journal entry  to record the following.
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Chapter 18-13 Costs of Issuing Stock Direct costs incurred to sell stock, such as  underwriting costs,  accounting (you are very expensive – and require cash)  and legal fees,  printing costs, and taxes,  should be reported as a  reduction  of the amounts paid in  (additional paid-in capital). Corporate Capital Corporate Capital Corporate Capital Corporate Capital
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Chapter 18-14 Reacquisition of Shares Corporations purchase their outstanding stock: To provide tax-efficient distributions of excess cash to shareholders  (sometimes) To signal undervaluation To increase earnings per share and return on equity. To provide stock for employee stock compensation contracts or to meet  potential merger needs. To thwart takeover attempts or to reduce the number of stockholders. To make a market in the stock. Corporate Capital Corporate Capital Corporate Capital Corporate Capital
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Chapter 18-15 Purchase of Treasury Stock Two acceptable methods to account for treasury stock:  Cost method  (more widely used).
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