20-4A STOCK ISSUANCE (NONCASH ASSETS SUBSCRIPTION AND TREASURYSTOCK

20-4A STOCK ISSUANCE (NONCASH ASSETS SUBSCRIPTION AND TREASURYSTOCK) Smith & Cline had the following stock transactions during the year:(a) Issued 5 000 shares of common stock with a $5 par value in exchange for realestate (land) with a fair market value of $27 500.(b) Issued 7 500 shares of common stock with a $5 par value and $6 fair marketvalue in exchange for a building with an uncertain fair market value.(c) Received subscriptions for 10 000 shares of $6 par common stock for $65 000.(d) Received subscriptions for 5 000 shares of $6 par common stock for $28 000.(e) Received a payment of $30 000 on the stock subscription in transaction (c).(f) Received the balance in full for the stock subscription in transaction (c) andissued the stock.(g) Received the balance in full for the stock subscription in transaction (d) andissued the stock.(h) Purchased 1 000 shares of its own $6 par common stock for $7 a share ($7 000).(i) Sold 500 shares of the treasury stock in transaction (h) for $7.50 a share.(j) Sold 500 shares of the treasury stock in transaction (h) for $6.75 a share.Prepare general journal entries to record the transactions identifying each by letter.20-5A STOCKHOLDERS’ EQUITY SECTION After closing its books on December 31 ProParts’ stockholders’ equity accounts had the following balances:Common stock subscriptions receivable $ 5 000Common stock $5 par 12 000 shares 60 000Preferred stock $10 par 4% 4 000 shares 40 000Common stock subscribed $5 par 3 000 shares 15 000Paid-in capital in excess of par-common stock 4 000Retained earnings 35 000Prepare the stockholders’ equity section of the balance sheet.20-7A STATED VALUE COMMON AND PREFERRED STOCK AND NONCASHASSETS Kris Kraft Stores had the following stock transactions during the year:(a) Issued 4 000 shares of no-par common stock with a stated value of $10 per sharefor $40 000 cash.(b) Issued 6 000 shares of no-par common stock with a stated value of $8 per sharefor $50 000 cash.(c) Issued 5 000 shares of no-par 6% preferred stock with a stated value of $15 pershare for $75 000 cash.(d) Issued 3 000 shares of no-par 6% preferred stock with a stated value of $20 pershare for $58 000 cash.(e) Issued 10 000 shares of $5 par common stock for land with a fair market valueof $50 000.(f) Issued 10 000 shares of $8 par common stock with a $9 fair market value for abuilding with an uncertain fair market value.(g) Issued 8 000 shares of $50 par 8% preferred stock for land with a fair marketvalue of $405 000.REQUIREDPrepare general journal entries to record the transactions identifying each transactionby letter. Review questions1. Briefly describe five advantages of the corporate form of business organization. Describe two disadvantages.10. How is treasury stock usually shown on the balance sheet?11. How is paid-in capital from sale of treasury stock usually shown on the balance sheet?

3 Simple steps to get your paper done

Step 1

Step 2

Step 3

Place Order Down to work Paper is Ready!

Takes just a few minutes!

Best writer takes the order

Access via your account