The following are a number of transactions and events for the Nielsen Corporation. For each, prepare the
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Question:
a. The state of Delaware approves the application for incorporation made by Nielsen and authorizes 100,000 shares of common stock with a $10 per share par value.
b. Nielsen issues the first 1,000 shares of its common stock for $12 per share in cash.
c. On the same day as (b), Nielsen issues another 500 shares of common stock for equipment that is valued at $6,200.
d. Nielsen's board of directors declares a $2 per share cash dividend.
e. On the date of record for the previous dividend, Nielsen prepares a list of all owners.
f. The date of payment arrives and Nielsen mails out all dividend distributions.
g. A 10 percent stock dividend is declared and immediately issued after the market price of the common stock has risen to $19 per share.
h. The company reacquires 300 shares of common stock for $16 per share in cash. Treasury stock is reported by means of the cost method.
i. The company reissues 200 shares of its treasury stock for $17 per share in cash.
j. The company reissues the remaining shares of treasury stock for $11 per share in cash.
k. A 40 percent stock dividend is declared and immediately issued on a day when the fair value of the stock is $20 per share.
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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