Parker Corporation's charter authorizes the issuance of 1 million common shares and 500,000 preferred shares. The following
Question:
Parker Corporation's charter authorizes the issuance of 1 million common shares and 500,000 preferred shares. The following transactions involving share issues were completed. Assume that Parker follows IFRS and that each transaction is independent of the others.
1. Issued 4,200 common shares for machinery. The machinery had been appraised at $74,500, and the seller's carrying amount was $58,600. The common shares' most recent market price is $18 a share.
2. Voted a $6 dividend on both the 17,000 shares of outstanding common and the 40,000 shares of outstanding preferred.
3. Issued 2,500 common shares and 1,200 preferred shares for a lump sum of $125,000. The common shares had been selling at $13 and the preferred at $80.
4. Issued 2,200 common shares and 135 preferred shares for furniture. The common shares had a fair value of $14 per share and the furniture was appraised at $36,000.
Instructions
Prepare the journal entries to record the transactions.
DividendA dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Intermediate Accounting Volume 2
ISBN: 9781119497042
12th Canadian Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy