EXERCISE 15-2

 

Facts: Kathleen Battle Corporation was organized on January 1, 2014. It is authorized to issue 10,000 shares of 8%, $100 par value preferred stock, and 500,000 shares of no-par common stock with a stated value of $1 per share. The following transactions were completed during the first year. Prepare entries to record the transactions.

E15-5 (Lump-Sum Sales of Stock with Preferred Stock) Dave Matthew Inc. issues 500 shares of $10 par value common stock and 100 shares of $100 par value preferred stock for a lump sum of $100,000.

 

EXERCISE 15-6 (15th edition)

Facts: Lindsey Hunter Corporation is authorized to issue 50,000 shares of $5 par value C/S. During 2014, Lindsey Hunter took part in the following selected transactions.

1. Issued 5,000 shares of stock at $45 per share, less costs related to the issuance of the stock totaling $7,000.

2. Issued 1,000 shares of stock for land appraised at $50,000. The stock is actively traded on a national exchange at approximately $46 per share on the date of issuance.

2. Issued 1,000 shares of stock for land appraised at $50,000. The stock is actively traded on a national exchange at approximately $46 per share on the date of issuance. 

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