Chapter 12 Practice Problems #1

Feb 1, ABC Company issued 30,000 shares of 6.25% preferred stock, $35 par value. The company received $55 cash per share.

Feb 12, ABC Company issued 250,000 shares of $7.50 par value common stock for $15.25 cash per share.

Feb 20, purchased land and a building from Purple, Inc. in exchange for common stock issued at par value. The building has a mortgage for $1,750,000 for 20 years at 5.75% and there is accrued interest on $40,200 on the mortgage note at the time of purchase. It is agreed that the land will be priced at $1,050,000 and the building at $1,100,250 and that Purple, Inc. will receive equity in the corporation at par value. The corporation has agreed to assume the mortgage note. Feb 24, issued 130,000 shares of $7.50 par value common stock in exchange for furniture, equipment, and machinery with fair market values of $500,575, $1,200,000, and $562,300 respectively. Mar 9, ABC Company declared a $75,200 cash dividend to all stockholders of record as of Mar 31. The dividend will be paid on April 30. April 30, paid the cash dividend. July 1, the company purchased 205,000 shares of treasury stock for $3,331,250. Round all dollars to two decimal points (Ex: $22.95) share. Sept 10, the company sold 108,500 shares of the treasury stock for $20 cash pers Round all dollars to two decimal points (Ex: $22.95) Oct 30, the company sold the remaining treasury stock for $15.00 cash per share. Round all dollars to two decimal points (Ex: $22.95)

Chapter 12 Proctice Problems \#1 Feb 1, ABC Company issued 30,000 shares of 6.25% preferred stock, $35 par value. The company received $55 cash per share. Feb 12, ABC Company issued 250,000 shares of $7.50 par value common stock for $15.25 cash per shar Feb 20, purchased land and a building from Purple, Inc. in exchange for common stock issued at par value. The building has a mortgage for $1,750,000 for 20 years at 5.75% and there is occrued interest on $40,200 on the mortgage note at the time of purchase. It is agreed that the land will be priced at $1,050,000 and the building at $1,100,250 and that Purple, Inc. will receive equity in the corporation at par volue. The corponation has ogreed to ossume the mortgoge note. Feb 24, issued 130,000 shares of $7.50 par value common stock in exchange for furniture, equipment, and mochinery with fair market volues of $500,575,$1,200,000, and $562,300 respectively. Mar 9, ABC Company declared a $75,200 cash dividend to all stockholders of record as of Mar 31. The dividend will be poid on April 30. April 30, paid the cash dividend. July 1, the company purchased 205,000 shares of treasury stock for $3,331,250. Round all dollars to two decimal points (Ex: \$22.95) Sept 10, the compary sold 108,500 shares of the treasury stock for $20 cash per share. Round all dollars to two decimal points (Ex:\$22.95) Oct 30 , the company sold the remaining treasury stock for $15.00 cash per share. Round all dollars to two decimal points (Ex: \$22.95)