Kunzig Corporation is authorized to issue 500 000 common shares During
Kunzig Corporation is authorized to issue 500,000 common shares. During 2012, the company took part in the following selected transactions.
1. Issued 6,000 common shares at $30 per share, less $2,000 in costs related to the issuance of the shares.
2. Issued 3,750 common shares for land appraised at $140,000. The shares were actively traded on a national stock exchange at approximately $32 per share on the date of issuance.
3. Purchased and retired 500 of the company’s shares at $29 per share. The repurchased shares have an average per share amount of $38.
(a). Prepare the journal entries to record the three transactions listed.
(b). When shares are repurchased, is the original issue price of those individual shares relevant?
Membership TRY NOW
  • Access to 800,000+ Textbook Solutions
  • Ask any question from 24/7 available
  • Live Video Consultation with Tutors
  • 50,000+ Answers by Tutors
Relevant Tutors available to help