P15-4 (Stock
Transactions—Lump Sum)
P15-4 Seles
Corporation’s charter authorized issuance of 100,000 shares of $10 par value
common stock and 50,000 shares of $50 preferred stock. The following
transactions involving the issuance of shares of stock were completed. Each
transaction is independent of the others.
1. Issued a
$10,000, 9% bond payable at par and gave as a bonus one share of preferred stock,
which at that time was selling for $106 a share.
2. Issued 500
shares of common stock for equipment. The equipment had been appraised at
$7,100; the seller’s book value was $6,200. The most recent market price of the
common stock is $16 a share.
3. Issued 375
shares of common and 100 shares of preferred for a lump sum amounting to
$10,800. The common had been selling at $14 and the preferred at $65.
4. Issued 200
shares of common and 50 shares of preferred for equipment. The common had a
fair value of $16 per share; the equipment has a fair value of $6,500.
Instructions
Record the
transactions listed above in journal entry form.
TUTORIAL PREVIEW
Record the
transactions listed above in journal entry form.
|
S.no.
|
Account title /
Description
|
Debit
|
Credit
|
|
1.
|
Cash
|
10,000
|
|
|
|
Discount on Bonds
Payable
|
106
|
|
|
|
Bonds Payable
|
|
10,000
|
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