Brockbank Corporation was organized on July 15, 2012. Record the journal entries for Brockbank to account for
Question:
a. The state authorized 30,000 shares of 7% preferred stock ($20 par) and 100,000 shares of no-par common stock.
b. Brockbank gave 6,000 shares of common stock to its attorney in return for her help in incorporating the business. Fees for this work are normally about $18,000.
c. Brockbank gave 15,000 shares of common stock to an individual who contributed a building worth $50,000.
d. Brockbank issued 5,000 shares of preferred stock at $25 per share.
e. Peter Brockbank paid $70,000 cash for 30,000 shares of common stock.
f. Another individual donated a $15,000 machine and received 4,000 shares of common stock.
g. The attorney sold all her shares to her brother-in-law for $18,000.
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain
Question Posted: