Question 4 2 pts Albert Corp. issued 2,000 shares of $50 par value preferred stock at...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Question 4 2 pts Albert Corp. issued 2,000 shares of $50 par value preferred stock at $70 per share on 3/1/2021. To promote sales of preferred stock, a warrant is attached to each share of preferred stock to allow the holder to purchase one share of $1 par common stock at $20 per share. Immediate after the issuance, the preferred began selling ex-right on the market for $68 per share while the warrant began selling for $5 per share. On 4/20/2021, 1,000 warrants were exercised. The entry to record the issuance of 2,000 shares of preferred stock on 3/1/2021 will include: debit Cash $146,000. credit Paid-in Capital-Stock Warrants $9,589. credit Preferred Stock $130,411. O debit Additional Paid-in Capital -Preferred Stock $30,411. Question 5 Using the information of question 4 on Alber Corp.'s issuance of preferred stock with warrants attached, the journal entry to record the issuance of 1,000 shares of common stock upon the exercise of 1,000 warrants on 4/20/2021 will include: credit Cash $20,000 debit Common Stock $1,000 credit Additional Paid-in Capital- Common Sstock $23,795 debit Paid-in Capital-Stock warrants $9,589 2 pts Question 6 Using the information of question 4 on Alber Corp.'s issuan of preferred stock with warrants, the journal entry to record the expiration of 1,000 warrants expired on 7/15/2021 will include: debit Paid-in Capital - Stock Warrants $4,795. credit Paid-in Capital - Stock Warrants $4,795. debit Paid-in Capital - Stock Warrants $9,589. credit Paid-in Capital - Stock Warrants $9,589. 2 pts Question 4 2 pts Albert Corp. issued 2,000 shares of $50 par value preferred stock at $70 per share on 3/1/2021. To promote sales of preferred stock, a warrant is attached to each share of preferred stock to allow the holder to purchase one share of $1 par common stock at $20 per share. Immediate after the issuance, the preferred began selling ex-right on the market for $68 per share while the warrant began selling for $5 per share. On 4/20/2021, 1,000 warrants were exercised. The entry to record the issuance of 2,000 shares of preferred stock on 3/1/2021 will include: debit Cash $146,000. credit Paid-in Capital-Stock Warrants $9,589. credit Preferred Stock $130,411. O debit Additional Paid-in Capital -Preferred Stock $30,411. Question 5 Using the information of question 4 on Alber Corp.'s issuance of preferred stock with warrants attached, the journal entry to record the issuance of 1,000 shares of common stock upon the exercise of 1,000 warrants on 4/20/2021 will include: credit Cash $20,000 debit Common Stock $1,000 credit Additional Paid-in Capital- Common Sstock $23,795 debit Paid-in Capital-Stock warrants $9,589 2 pts Question 6 Using the information of question 4 on Alber Corp.'s issuan of preferred stock with warrants, the journal entry to record the expiration of 1,000 warrants expired on 7/15/2021 will include: debit Paid-in Capital - Stock Warrants $4,795. credit Paid-in Capital - Stock Warrants $4,795. debit Paid-in Capital - Stock Warrants $9,589. credit Paid-in Capital - Stock Warrants $9,589. 2 pts
Expert Answer:
Answer rating: 100% (QA)
Answer Question 4 The journal entry to record the issuance of 2000 shares of 50 par value preferred ... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0324659139
11th edition
Authors: Loren A. Nikolai, John D. Bazley, Jefferson P. Jones
Posted Date:
Students also viewed these accounting questions
-
You purchase a desk for 60% of the original price p. This price is $32 less than the original price. Write and solve an equation to find the original price of the desk.
-
Show that 1. Every differentiable concave function is pseudoconcave. 2. Every pseudoconcave function is quasiconcave
-
What competitive advantages and disadvantages do regional chains have in comparison with national chains?
-
This week we learned about the courts, their operations and the different parties in litigation. Please use course, library and online means to find academic quality resources, then answer the...
-
Figure 20.27 shows the flowsheet for a process for the production of gasoline (mainly octane) from an olefins feed (propane, propene, and butene). The feed to the process is heated in E-100, and then...
-
Tadoussac Inc. and Sturgis Ltd. are plumbing supply companies operating in eastern Canada. Both companies are looking for investment to help with their expansion plans. You work for a small venture...
-
If triangles ABC and DFG are similar triangles and side DF = 218, what is the value of side DG?
-
Accountants for Elwin, Inc. have assembled the following data for the year ended December 31, 2018: (Click the icon to view the current accounts.) (Click the icon to view the transaction data.)...
-
Based on the weekly reading related to Technology: Ethics and Social Responsibility Issues - What are the ways in which a company can manage the growth of technology and leverage technological...
-
a CMAA is crating an encounter form for a patient's appointment upon check-in. Whcih of the following information should the assistnt include on the form? a) debit balance b) Credit balance c)...
-
Which information concerning periodic statements and coupon books is true? A. If the servicer uses periodic statements, each statement must be sent reasonably promptly after the previous payment date...
-
An example illustrating how the equity method can result in manipulation of financial results is the case of Sunbeam Corporation. Sunbeam employed various manipulative tactics, including the use of...
-
Under the temporal method of translation, a foreign entity Multiple choice question. can have a net asset or a net liability balance sheet exposure. always has a net liability balance sheet exposure....
-
Develop a paper, evaluation on the Overview of Financial Statements using the following as guides: -Locate a financial statement (income, balance, statement of cash flow) for a company similar to one...
-
Find the area of the surface generated by revolving the para- metric curve x = cos 1, y = sin? 1 (0 < I sa/2) about the y-axis.
-
You own your own firm, and you want to raise \($40\) million to fund an expansion. Currently, you own 100% of the firms equity, and the firm has no debt. To raise the \($40\) million solely through...
-
If investors are holding optimal portfolios, how will the portfolios of a more risk averse and a more risk-tolerant investor differ?
-
According to the managerial entrenchment theory, managers choose capital structures so as to preserve their control of the firm. On the one hand, debt is costly for managers because they risk losing...
Study smarter with the SolutionInn App