1. Fleishman Corporation issued 5,000 shares of its no-par common stock for $28 per share and 510 shares of its $50 par value preferred stock for $52.50 per share. Prepare the journal entries to record the sale of the stock.
2. Kidwell, Inc., is authorized to issue 5,000,000 shares of no-par common stock and 800,000 shares of $30 par value preferred stock. During its first year of operation, the company issued 1,200,000 shares of common stock for a total amount of $20,400,000 and 250,000 shares of preferred stock for a total of $8,750,000. The firm has net income of $535,000 for the year, but it declared no dividends. Prepare the shareholders’ equity section of the balance sheet as it would appear after the first year’s operation.
Stephenson Products issued 9,000 shares of its $1 par value common stock in exchange for some machinery. Prepare the journal entry for each of the following situations:
A. The machinery has a fair market value of $187,000.
B. The machinery has a list price of $245,000, but the stock sold earlier in the day for $26 per share.
Make the entries for the following events of the Burns Corporation:
A. Sold 3,000 shares of a $30 par value preferred stock for $102,000.
B. Declared a two-for-one stock split on its $2 par value common stock. There are 1,600,000 shares of common stock authorized and 300,000 issued and outstanding.