ACC 423 Week 5 Final Exam 2 Chapter-15

Brief Exercise 15-4

Kingbird Corporation issued

341

shares of

$10

 par value common stock and

145

shares of

$50

par value preferred stock for a lump sum of

$19,188

The common stock has a market price of

$20

per share, and the preferred stock has a market price of

$100

per share. Prepare the journal entry to record the issuance.

Exercise 15-1

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During its first year of operations, Metlock Corporation had the following transactions pertaining to its common stock.

Jan. 10

Issued

80,000

shares for cash at

$6

per share.

Mar. 1

Issued

5,000

shares to attorneys in payment of a bill for

$35,000

for services rendered in helping the company to incorporate.

 July 1

 Issued

30,000

shares for cash at

$8

per share.

Sept. 1

Issued

60,000

 shares for cash at

$10

per share.

(a) Prepare the journal entries for these transactions, assuming that the common stock has a par value of

 $             5

 per share. 

(b) Prepare the journal entries for these transactions, assuming that the common stock is no-par with a stated value of

 $             3

per share.