Novak Corporation’s charter authorized issuance of 110,000 shares of $10 par value common stock and 49,300...

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Accounting

Novak Corporation’s charter authorized issuance of 110,000shares of $10 par value common stock and 49,300 shares of $50preferred stock. The following transactions involving the issuanceof shares of stock were completed. Each transaction is independentof the others. 1. Issued a $10,700, 9% bond payable at par and gaveas a bonus one share of preferred stock, which at that time wasselling for $97 a share. 2. Issued 480 shares of common stock forequipment. The equipment had been appraised at $7,500; the seller’sbook value was $5,700. The most recent market price of the commonstock is $16 a share. 3. Issued 373 shares of common and 107 sharesof preferred for a lump sum amounting to $9,800. The common hadbeen selling at $14 and the preferred at $67. 4. Issued 180 sharesof common and 51 shares of preferred for equipment. The common hada fair value of $16 per share; the equipment has a fair value of$6,900.

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4.3 Ratings (825 Votes)

1 Cash 10700 Discount on bonds payable 97 Bonds payable 10700 Preferred stock 50 Paid in capital in excess of parPreferred stock 47 2 Equipment 48016 7680 Common stock 4800 Paid in capital in See Answer

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