Exercises I need help with. I've started it but havent finished yet. I am still working on it but would like some input. My assigned numbers are in the Mar-Apr column.

1. Issuanceofstock

Preparejournalentriestorecordtheissuanceof100,000sharesofcommonstockat$20pershareforeachofthefollowingindependentcases:

1. JacksonCorporationhascommonstockwithaparvalueof$1pershare.
2. RoyalCorporationhasno-parcommonwithastatedvalueof$5pershare.
3. FrenchCorporationhasno-parcommon;nostatedvaluehasbeenassigned.

3.

Analysisofstockholders'equity

StarCorporationissuedbothcommonandpreferredstockduring20X6.Thestockholders'equitysectionsofthecompany'sbalancesheetsattheendof20X6and20X5follow:

Preferredstock,$100parvalue,10%	$580,000	$500,000
Commonstock,$10parvalue	2,350,000	1,750,000
Paid-incapitalinexcessofparvalue
Preferred	24,000	?
Common	4,620,000	3,600,000
Retainedearnings	8,470,000	6,920,000
Totalstockholders'equity	$16,044,000	$12,770,000

1. Computethenumberofpreferredsharesthatwereissuedduring20X6.
2. Calculatetheaverageissuepriceofthecommonstocksoldin20X6.
3. Bywhatamountdidthecompany'spaid-incapitalincreaseduring20X6?
4. DidStar'stotallegalcapitalincreaseordecreaseduring20X6?Bywhatamount?

PROB 3.

Issuanceofstock

VenturesInc.wasformedonJanuary1toinvestinartwork.Thecompanyisauthorizedtoissue10,000sharesof$1par-valuecommonstockand1,000sharesof10%,$50par-valuecumulativepreferredstock.Thefollowingselectedtransactionsoccurredduringthefirstquarterofoperation:

Jan.3	Sold5,000sharesofcommonstocktothecorporation'sfoundersat$30pershare.
19	Sold600sharesofpreferredstockat$58pershare.
Feb.4	Issued100commonsharestoanattorneyfor$3,300oflegalworkrelatedtocorporatestart-upandformation.
11	Issued2,000sharesofcommonstocktoPierreLaTourinexchangeforapaintingappraisedat$75,000.TheartoriginallycostLaTour$30,000.

Instructions

1. Preparejournalentriestorecordthecompany'stransactions.
2. Preparethestockholders'equitysectionofthefirm'sMarch31balancesheet.TheRetainedEarningsbalanceonthisdatetotals$41,000.
3. ThepresidentofVenturesbelievesthatorganizationcostsshouldbeexpensedimmediately.Brieflyexplainwhythepresident'sviewisincorrect.

Ex 4.

Basicmanufacturingcomputations

LyonManufacturingreportedtotalmanufacturingcosts(directmaterialsused,directlabor,andfactoryoverhead)of$549,000for20X3.Salesandoperatingexpenseswere$759,200and$142,500,respectively.Thefollowinginformationappearedoncompanybalancesheets:

	FortheYearEnded
	12/31/X3	12/31/X2
Finishedgoods	$150,000	$153,700
Workinprocess	86,400	74,100

Computecostofgoodsmanufactured,costofgoodssold,andnetincomefor20X3.

PRO 2

Straightforwardmanufacturingstatements

ThefollowinginformationwasextractedfromtheaccountingrecordsofOlympic Companyfortheyearjustended:

Sales	$628,000
Workinprocess,Jan.1	56,700
Advertisingexpense	23,500
Directmaterialpurchases	231,500
Finishedgoods,Dec.31	67,800
Indirectmaterialsused	12,300
Directlabor	85,600
Directmaterials,Jan.1	45,500
Finishedgoods,Jan.1	55,900
Directmaterials,Dec.31	38,200
Salesstaffsalaries	33,300
Workinprocess,Dec.31	47,400
Indirectlabor	50,700

Utilities,taxes,insurance,anddepreciationareincurredjointlybyOlympic'smanufacturing,sales,andadministrativefacilities.Thecostswereasfollows:

Utilities	$40,000
Taxes	25,000
Insurance	10,000
Depreciation	36,000

Thefirstthreecostsareallocatedproportionatelyonthebasisofsquarefeetoccupiedbythethreefunctionalareas.Areviewofthecompany'sfacilitiesrevealedthefollowingpercentageswouldbeappropriate:manufacturing,50%;sales,30%;andadministrative,20%.Depreciationisallocated70,20,and10%,respectively.

Instructions

1. Prepareascheduleofcostofgoodsmanufacturedingoodform.
2. Prepareanincomestatementingoodform.