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Prepare journalentries to record each of the following independent stock issuesituations.
(a) Sherri Hui Corporation issued100,000 shares of $1 par value common stock. The issue price was$30 per share.
(b) Ariana Corporation issued50,000 shares of no par common stock for $10 per share.
(c) Laser Golf issued 40,000shares of $100 par value preferred stock. The issue price was $102per share.
(d) Charleston Industries issued5,000 shares of $5 par value common stock for land with a fairvalue of $75,000.

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Tod Thiel
Tod ThielLv2
28 Sep 2019

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Related questions

Complete each question record transactions


Question 1

Hernandez Company had the following stock transactions duringthe year:

  1. Issued 25,000 shares of $1 par common stock for $25,000.

  2. Issued 20,000 shares of $1 par common stock for $22,000cash.

  3. Issued 22,000 shares of $1 par common stock for $21,000cash.

  4. Issued 2,000 shares of $50 par, 8% preferred stock for $100,000cash.

  5. Issued 1,000 shares of $50 par, 8% preferred stock for $49,000cash.

  6. Issued 1,000 shares of $50 par 8% preferred stock for$51,500

  7. Issued 2,500 shares of no-par common stock for $11,875 cash

  8. Issued 1,500 shares of no par 7% preferred stock for $72,000cash.


Question 2

Kris Kraft Stores had the following stock transactions duringthe year.

  1. Issued 4,000 shares of no par common stock with a stated valueof $10 per share for $40,000 cash.

  2. Issued 6,000 shares of no par common stock with a stated valueof $8 per share for $50,000 cash.

  3. Issued 5,000 shares of no par 6% preferred stock with a statedvalue of $15 per share for $75,000 cash.

  4. Issued 3,000 shares of no par 6% preferred stock with a statedvalue of $20 per share for $58,000 cash.

  5. Issued 10,000 shares of $8 par common stock with a $9 fairmarket value for a building with an uncertain fair marketvalue.

  6. Issued 10,000 shares of $5 common stock for land with a fairmarket value of $50,000.

  7. Issued 8,000 shares of $50 par, 8% preferred stock for land witha fair market value of $405,000.


Question 3

During the year ended December 21, 2013, Smith Company completedthe following transactions:

  1. 04/15 Declared a semiannual dividend of $0.80 per share onpreferred stock and $0.05 per share on common stock to shareholdersof record on 05/05, payable on 05/10. Currently, 4,000shares of $100 par preferred stock and 50,000 shares of $1 parcommon stock are outstanding.

  2. 05/05 Record date of record entry.

  3. 05/10 Paid cash dividends.

  4. 10/15 Declared semiannual dividend of $0.80 per share onpreferred stock and $0.50 per share on common stock to shareholdersof record on November 5, payable on November 20.

  5. 11/5 Record date of record entry.

  6. 11/20 Paid cash dividends

  7. 11/22 Declared a 10% stock dividend to shareholders of record onDecember 8, distributable on December 16. Market valueof the common stock was estimated to be $8.

  8. 12/08 Record date of record entry.

  9. 12/16 issued certificated for common stock dividend.

  10. 12/20 Board of directors declared a two for one common stocksplit.





Ranier Company isauthorized to issue 10,000 shares of 8%, $100 par value preferredstock and 500,000 shares of no-par common stock with a stated valueof $1 per share. If Ranier issues 5,000 shares of preferred stockfor land with an asking price of $575,000 and a market value of$550,000, which of the following would be the journal entry forRanier to record?

Land: 500,000
Preferred Stock: 500,000

Land: 550,000
Preferred Stock: 550,000

Land: 575,000
Preferred Stock: 500,000
Paid-in Capital in Excess of Par-Preferred: 75,000

Land: 550,000
Preferred Stock: 500,000
Paid-in Capital Excess of Par-Preferred: 50,000

On January 2, 2015, ABC Co. was authorized to issue 300,000shares of common stock, par value $10 per share and 50,000 sharesof 6% Preferred stock, par value $100 per share. Record thefollowing events for 2015:

1. Issued 100,000 shares of common stock at $15 per share.

Debit Credit

2. Issued 11,000 shares of preferred stock at $105 pershare.

Debit Credit

3. Reacquired 2,000 shares of common stock at $18 per share.

Debit Credit

4. Reissued 500 shares of treasury stock for $10,000.

Debit Credit

5. Declared the annual cash dividend on the preferred stock anda $1 per share dividend on the

common stock. This will be paid the followingyear.

Debit Credit

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