Exercise 11-2 Accounting for par, stated, and no-par stock issuances LO P Rodrig
ID: 2405816 • Letter: E
Question
Exercise 11-2 Accounting for par, stated, and no-par stock issuances LO P Rodriguez Corporation issues 19,000 shares of its common stock for $152,000 cash on February 20. 1. Assume the stock has a $2 par value. Prepare journal entries to record this event Feb. 20 152.000 Common stock, $2 par value Paid-n capital in excess of par value, common stock 8,000 1140000 Assume the stocok has nelther par nor stated value Prepare joumial entries to recond this avert Feb. 20 Cash 152,000 Common stock, no-par value 152,000 3. Assume the stock has an $5 stated value Prepare jounal entries to record this event Feb. 20 Cash 152,000 Common stock, $5 stated value Paid-n capital in excess of par value, common stock 95,000 57.000 8 4 5 6 7 8 9 0Explanation / Answer
Ex 11-2) Part 3 Journal Entries (Amounts in $)
Ex 11-3) Part 2 Journal Entries (Amounts in $)
11-8) As preferred shares are non cummulative in this case, the dividends in arrears at each year end will be zero.
(Amounts in $)
11-9) As preferred shares are cummulative in this case, the unpaid dividends at each year end will be accumulated and paid in the year in which sufficient profits are available.
(Amounts in $)
11-1A) Part 4) Total Paid in capital = Total Common Stock+Total Paid-in Capital in excess of Par Value
= ($250,000+$125,000+$50,000+$75,000)+($50,000+$25,000+$30,000+$45,000)
= $500,000+$150,000 = $650,000
11-1A) Part 5) Book Value per common share
= Stockholders' Equity applicable to common shares/No. of common shares outstanding
= $695,000/20,000 shares = $34.75 per share
No Date General Journal Debit Credit 3 Feb 20 Cash 152,000 Common stock, $5 stated value (19,000*$5) 95,000 Paid-in capital in excess of stated value, common stock 57,000Related Questions
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