Ex. 285
Prepare the necessary journal entry for each of the following transactions for Renfro Corporation.
(a)Issued 2,000 ordinary shares with a $5 par value for $16 per share.
(b)Issued 5,000 shares for land advertised for sale at $80,000. Renfro's shares are actively traded at a market price of $15 per share.
Ex. 286
Randolph Corporation issued 9,000 ordinary shares.
Instructions
Prepare the entry for the issuance under the following assumptions.
(a)The shares had a par value of $5 per share and were issued for a total of $65,000.
(b)The shares had a par value of $5 per share and were issued to attorneys for services during in-corporation valued at $65,000.
(c)The shares had a par value of $5 per share and were issued for land worth $65,000.
Ex. 287
1.Name at least three factors that influence the market value of shares.
2.Corporations acquire treasury shares for a variety of purposes. Name three reasons why treasury shares may be acquired by a corporation.