Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the daily bugle has issued 3,000 shares of common

The Daily Bugle has issued 3,000 shares of common stock and 1,500 shares of preferred...

80.2K

Verified Solution

Question

Accounting

The Daily Bugle has issued 3,000 shares of common stock and 1,500 shares of preferred stock for a lump sum of $180,000 cash.

Instructions (show all of your work)

(a) Give the entry for the issuance assuming the par value of the common stock was $10 and the fair value $25, and the par value of the preferred stock was $25 and the fair value $100. (Each valuation is on a per share basis and there are ready markets for each stock.)

(b) Give the entry for the issuance assuming the same facts as (a) above except the preferred stock has no ready market and the common stock has a fair value of $32 per share.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Finance
1.2K views

Assume that you hold a. diversified 90,000 portfolio with a beta of 1.20 and that you...

Chemistry
1.2K views

Describe the difference between a \"homolytic bond dissociation energy\" and a \"heterolytic bond dissociation energy\". In...

Finance
1.2K views

Lazare Corporation expects an EBIT of $22,500 every year forever. Lazare currently has no debt, and...

Basic Math
1.2K views

For which of the statements below an indirect prove would be the most efficient Select...

Basic Math
1.2K views

Find the exact value of sin ( 7?/4 )a) 1/?2b) 1/?3c) -1/?2d) - 1/?3

Algebra
1.2K views

32 Let F be a field and let p x a x a x a...

Accounting
1.2K views

Tarth enters into a contract with Mormont on September 1, 2022 to supply 100 axes...

Accounting
1.2K views

How do we record and report inventory shrinkage? Which accounts are affected?

Accounting
1.2K views

Deters Duplicating Chart of Accounts Balance Sheet Accounts Assets 110 Cash 120 Accounts Receivable-J. Chin...

Accounting
1.2K views

The right-of-use asset is increased by A) Initial direct costs incurred by the lessee only....

Accounting
1.2K views

Hi what is the best answer for question number 5, You helped me understand previous...

Accounting
1.2K views

A company issues $50 million in new shares. The company later uses this money to...