202. A company is authorized to issue 750,000 shares of $2 par value common stock. Prepare journal entries to record the following selected transactions that occurred during the company’s first year of operations:
Jan. 10
Sold 102,000 shares of common stock for $8 cash per share.
15
Exchanged 10,000 shares of common stock for equipment with a market value of $70,000.
Feb. 1
Exchanged 500 shares of common stock for $3,000 of legal services Incurred during the company’s organization.
203. On July 1, a corporation issued 15,000 shares of no-par common stock with a stated value of $3 per share in exchange for a tract of land having a market value of $215,000. Prepare the general journal entry to record this transaction.
204. On September 20, Fletcher Corporation issued 25,000 shares of no-par common stock for equipment having a market value of $85,000. Prepare the general journal entry to record this transaction.
205. A corporation had the following stock outstanding when the company’s board of directors declared a $75,000 cash dividend in the current year:
Preferred stock, $40 par, 6%, 12,500 shares issued
$ 500,000
Common stock, $10 par, 70,000 shares issued …………….
700,000
Total ………………………………………………………..
$1,200,000
Allocate the cash dividend between the preferred and common stockholders assuming the preferred stock is noncumulative and nonparticipating.
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