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Conversion (or stock) value of convertible bonds?
conversion (or stock) value = Conversion Ratio x Price of Common Stock
= 25 x $50 = $1,250
b. A $1,000-par-value bond that is convertible into 12.5 shares of common stock. The common stock is currently selling for $42 per share.
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Shikai Corporation's charter authorized issuance of 100,000 shares of $10 par value common stock and 50,000 shares of $50 preferred stock
Fair market value of furniture and equipment=$6,200
Market value of common stock=16*200=$3200
Total value assigned to preferred stock=$3,000
Journal entries
Furniture and Fixtures $6,200
Preferred Stock $2,500
Common Stock $2,000
Paid-in
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Calculating conversion or stock value of convertible bond.
A $1,000-par-value bond that is convertible into 12.5 shares of common stock. The common stock is currently selling for $42 per share.
c. A $1,000-par-value bond that is convertible into 100 shares of common stock.
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Stockholders equity : explained
(b) On April 1, GT Co. issues no-par value common stock for $50,000 cash.
Apr. 1 Cash 50,000
Common Stock, No-Par Value 50,000
Issued no-par value stock for cash.
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Present Value of Preferred Stock
What are the cash flows associated with calculating the present value of common stock? Why is it more difficult to calculate the present value of common stock than it is to calculate the value of bonds or preferred stock?
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Prepare Journal Entries: Issuance, Common & Purchase Stock
Preferred Stock $166,400
Paid-in Capital in Excess of Par Value-Preferred Stock 20,710
Common Stock 2,129,000
Paid-in Capital in Excess of Stated Value-Common Stock 1,724,500
Treasury Stock-Common (5,550 shares) 61,050
Retained Earnings 82,400
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ABC Corporation: Weight of Debt; weight of common stock;
The market value of the debt is 80% of the book value, the market value of preferred stock is 70% of book value, and the market value of common stock is 130% of book value.
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Jajoo Corp. - Journal Entries
Preferred Stock (10%,$100 par noncumulative, 5,000 shares authorized)=$300,000
Common Stock ($5 stated value, 300,000 shares authorized)=$1,000,000
Paid in capital in excess of par value preferred stock=$20,000
Paid in capital in excess of stated value
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Hayslett Corp
Paid in capital in excess of stated value common stock 30,000
(10,000 x $2 = $20,000)
Sept. 1 Cash 30,000
Common Stock 10,000
Paid in capital in excess of stated value common stock 20,000
(5,000 x $2 = $10,000)
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Recording the Issuance of Common and Preferred Stock
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 stock transactions were completed during the first year.