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Intermediate Accounting Chapter 15 Homework Solutions

Unformatted text preview: ACCO 4020 Chapter 15 Homework Solutions (15 th edition) Kren 1 Chapter 15 Homework Solutions: Stockholders Equity (Kieso 15 th edition) ACCO 4020: Advanced Accounting EXERCISE 15-2 (15 th edition) Facts : Kathleen Battle Corporation was organized on January 1, 2014. It is authorized to issue 10,000 shares of 8%, $100 par value preferred stock, and 500,000 shares of no-par common stock with a stated value of $1 per share. The following transactions were completed during the first year. Prepare entries to record the transactions. Jan. 10 Issued 80,000 shares of C/S for cash at $5 per share. Mar. 1 Issued 5,000 shares of P/S for cash at $108 per share. April 1 Issued 24,000 shares of common stock for land. The asking price of the land was $90,000; the fair value of the land was $80,000. May 1 Issued 80,000 shares of C/S for cash at $7 per share. Aug. 1 Issued 10,000 shares of C/S to attorneys in payment of their bill of $50,000 for services rendered in helping the company to organize. Sept. 1 Issued 10,000 shares of C/S for cash at $9 per share. Nov. 1 Issued 1,000 shares of P/S for cash at $112 per share. Jan. 10 Cash (80,000 shares X $5 market price/share) 400,000 Common Stock (80,000 shares X $1 stated value/share) 80,000 APICCommon Stock 320,000 March 1 Cash (5,000 shares x $108 market/share) 540,000 Preferred Stock (5,000 shares X $100 par value/share) 500,000 APICPreferred Stock 40,000 April 1 Land (at fair value) 80,000 Common Stock (24,000 shares X $1 stated value/share) 24,000 APICCommon Stock 56,000 May 1 Cash (80,000 shares X $7 market price/share) 560,000 Common Stock (80,000 shares X $1 stated value/share) 80,000 APICCommon Stock 480,000 Aug. 1 Organizational Expense 50,000 Common Stock (10,000 shares X $1 stated value/share) 10,000 APICCommon Stock 40,000 Sept. 1 Cash (10,000 shares X $9 market price/share) 90,000 Common Stock (10,000 shares X $1 stated value/share) 10,000 APICCommon Stock 80,000 Nov. 1 Cash (1,000 shares X $112 market price/share) 112,000 Preferred Stock (1,000 shares X $100 par value/share) 100,000 APICPreferred Stock 12,000 2 EXERCISE 15-5 (15 th edition) Facts : Dave Matthew Inc. issues 500 shares of $10 par value common stock and 100 shares of $100 par value preferred stock for a lump sum of $100,000. (a) Prepare the entry for the issuance when the market value of the common shares is $165 per share and the market value of the preferred stock is $230 per share. (b) Prepare the entry for the issuance when only the market value of the common shares is known and it is $170 per share. (a) Solution - Proportional Method Solution: Fair Value of Stock % of FMV Proceeds Received Cost Allocated FMV of common stock (500 shares x $165 market/share) $82,500 78.2% $100,000 $78,200 FMV of preferred stock (100 shares x $230 market/share) 23,000 21.8% 100,000 21,800 Total market value $105,500 100% $100,000 Cash 100,000 JE to record C/S (500 shares x $10 par/share) 5,000 Sale of Stock APIC C/S ($78,200 - $5,000)...
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Один из мужчин был крупного телосложения, в очках в тонкой металлической оправе с разбитыми стеклами. Второй - молодой темноволосый, в окровавленной рубашке. - Халохот - тот, что слева, - пояснил Смит.

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