Assume Cole Corporation originally issued 300 shares of $50 par convertible preferred stock at $110 per share.If each preferred share may be converted into six shares of $8 par common stock and all the shares are converted, what journal entry will Cole Corporation make to record the conversion?View Solution: Assume Cole Corporation originally issued 300 shares of 50 par

Assume Cole Corporation originally issued 300 shares of $50 par convertible preferred stock at $110 per share.If each preferred share may be converted into six shares of $8 par common stock and all the shares are converted, what journal entry will Cole Corporation make to record the conversion?View Solution: Assume Cole Corporation originally issued 300 shares of 50 par

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 4RE: Use the same facts as in RE 16-3, but instead assume that Pickens declares and issues a 50% stock...

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Answer the following questions: (show the details) 6,000 shares of its $15 par value preferred stock having a fair value of $20 per share for a lump sum of $230,000. International Co. issues 4,000 shares of its $5 par value common stock having a fair value of $25 per share and JEa) What amount of the proceeds should be allocated to the common stock and preferred stock (5b) What is the journal enter to record the transaction?
Bridgeport Inc.’s $9 par value common stock is actively traded at a market price of $15 per share. Bridgeport issues 4,800 shares to purchase land advertised for sale at $71,500.Journalize the issuance of the stock in acquiring the land. What is the date? What is credit or debit? What is the title or explanation?
A company issued for $78 per share, 17 shares of $43 par value convertible preferred stock. One share of preferred stock can be converted into 4 shares of the company’s $36 par value common stock. Assume that all of the preferred stock was converted into common stock, and the market value of the common stock at the date of the conversion was $30 per share. This conversion will affect Retained Earnings by $_________. (Do NOT put plus or minus sign in front of the amount. If the conversion does not affect Retained Earnings, then enter 0).
Suppose a company purchases 2,000 shares of its own $1 par value common stock for $16 per share. Which of the following is recorded at the time of the purchase? a. Debit Treasury Stock for $32,000. b. Debit Common Stock for $30,000. c. Debit Common Stock for $32,000. d. Debit Treasury Stock for $2,000.
b) East Company issued 1,000 shares with P5 par to Howe as compensation for services. By what amount should the share premium accoùnt increase as a result 1. Answer the following questions: a) Ivy Company provided the following accounts at year-end: Preference Share Capital, P100 par P5,000,000 Ordinary Share Capital, P10 par Subscribed Preference Share Capital Subscribed Ordinary Share Capital Subscriptions Receivable - Ordinary Subscriptions Receivable -Preference Share Premium – Preference Share Share Premium – Ordinary Share 2,000,000 1,800,000 1,000,000 180,000 190,000 300,000 220.000 680,000 Treasury Share - Preference (700 shares at cost) Share Premium - Preference Treasury Share 850,000 Retained Earnings 2,000,000 How much is total shareholders' equity at yearend? b) East Company issued 1,000 shares with P5 par to Howe as compensation fo. 1.000 hours of legal services performed. Howe bills P160 per hour for his loet services. By what amount should the share premium accoùnt…
(a) A corporation issues 8,000 shares of its $1 par value common stock to provide funds for further expansion. The issue price is $50 per share. What journal entry should be made to record this transaction? (b) A corporation issues 2,000 shares of its $2 par value preferred stock for cash at $60 per share. What journal entry should be made to record this transaction? (c) A company purchased 500 shares of its own $1 par value common stock at $24 per share. What journal entry should be made to record this transaction?
Multiple choice: Question 1: A corporation issues 2,500 shares of common stock for P 45,000. The stock has a stated value of P10 per share. The journal entry to record the stock issuance would include a credit to Ordinary Shares fora.) P25,000b.) P20,000c.) P5,000d.) P45,000Question 2: When a corporation reacquired its own shares due to delinquency and there are no bidders, the share must be retired immediately.Select one:a.) Trueb.) FalseQuestion 3: Using the journal entry method, what is the appropriate entry when there is an issuance of share capital?a.) Debit to authorized share capitalb.) Credit to authorized share capitalc.c.) Credit to unissued share capitald.) Credit to share capitalQuestion 4: An ordinary shareholder receives the same preference and rights as a preference shareholder.-Select one:a.) Trueb.) FalseQuestion 5: Which statement below is not a reason for a corporation to buy back its own stock.a.) for supporting the market price of the stockb.) resale to…
Suppose a company purchases 2,000 shares of its own $1 par value common stock for $16 per share. The company then resells 400 of these shares for $20 per share. Which of the following is recorded at the time of the resale? a. Credit Common Stock for $400. b. Credit Treasury Stock for $8,000. c. Credit Common Stock for $8,000. d. Credit Additional Paid-In Capital for $1,600.
A corporation issues 1,500 shares of common stock for $32,000. The stock has a par value of $10 per share. The journal entry to record the stock issuance would include a credit (increase) to Common Stock for: Oa. $15,000 Ob. $32,000 Oc. $17,000 Od. $2,000 A Moving to the next question prevents changes to this answer, Question 3 of 10 & @ # $ de 6. 7 8 2 3 4 } P Y U E R %3D G H J K S D F V V B ミ
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Foley Co. bought 50 shares of its stock for $8 per share to be held as Treasury Stock. Record this transaction. Edit View Insert Format Tools Table