Matsui Corporation’s charter authorized issuance of 100,000 shar

Matsui Corporation’s charter authorized issuance of 100,000 shares of $10 par value common stock and 50,000 shares of $50 preferred stock. The following transactions involving the issuance of shares of stock were completed. Each transaction is independent of the others.

1. Issued a $10,000, 9% bond payable at par and gave as a bonus one share of preferred stock, which at that time was selling for $106 a share.

2. Issued 500 shares of common stock for machinery. The machinery had been appraised at $7,100; the seller’s book value was $6,200. The most recent market price of the common stock is $15 a share.

3. Issued 375 shares of common stock and 100 shares of preferred stock for a lump sum amounting to $11,300. The common stock had been selling at $14 and the preferred stock at $65.

4. Issued 200 shares of common stock and 50 shares of preferred stock for furniture and fixtures. The common stock had a fair market value of $16 per share; the furniture and fixtures have a fair value of $6,200.


Record the transactions listed above in journal entry form.

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...
Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...


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