Morgan Corporation issues 500 “packages” of securities for $180 per package. Each package includes 10 shares of $1 par value common stock and 2 shares of $50 par value preferred stock. The separate market value of the common stock was $8 at the time of the sale and Morgan credits the Common Stock account to $5,000 and the Additional Paid in Capital on Common Stock account for $29,615.38. What was the separate market value of the preferred stock on the date of the sale, and what journal entry' would Morgan make to record this transaction?
Answer to relevant QuestionsGiven the following information from Fire Corporation's fixed share option compensation plan, prepare the journal entry to record its current compensation expense for Year 2. On January' 1, Lorain Corporation had 2,000 shares of $5 par common stock LO 15.7 authorized and outstanding. These shares were originally issued at a price of $26 per share. In addition, 500 shares of $50 par preferred ...What information is contained in a corporation's articles of incorporation? Sarasota Corporation has 9% convertible bonds outstanding. It recorded interest expense (net of income taxes) of $6,300 on these bonds during the year. The bonds are convertible into 2,500 shares of common stock. Compute the ...The shareholders’ equity' section of Gaines Industries’ balance sheet appeared as follows’ at December 31, 2015: Contributed Capital: Preferred stock, 8%, $100 par (5,000 shares authorized, 3,000 shares issued) ...
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