Hello, I have three questions. If you can please provide a solution to all three problems.
Question one: both proportional and incremental methods need to be used
Dave Matthew Inc. issues 500 shares of $10 par value common stock and 100 shares of $100 par value preferred stock for a lump sum of $100,000.
(a) Prepare the journal entry for the issuance when the market price of the common shares is $165 each and market price of the preferred is $230 each.
(b) Prepare the journal entry for the issuance when only the market price of the common stock is known and it is $170.00 per share.
The following information has been taken from the ledger accounts of Isaac Stern Corporation.
Total income since incorporation $317,000
Total cash dividends paid 60,000
Total value of stock dividends distributed 30,000
Gains on treasury stock transactions 18,000
Unamortized discount on bonds payable 32,000
Determine the current balance of retained earnings.
Current balance of retained earnings $
Before Gordon Corporation engages in the treasury stock transactions listed below, its general ledger reflects, among others, the following account balances (par value of its stock is $30 per share).
Paid-in Capital in Excess of Par—Common Stock $99,000
Common Stock $270,000
Retained Earnings $80,000
Record the treasury stock transactions (given below) under the cost method of handling treasury stock; use the FIFO method for purchase-sale purposes. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
(a) Bought 380 shares of treasury stock at $40 per share.
(b) Bought 300 shares of treasury stock at $45 per share.
(c) Sold 350 shares of treasury stock at $42 per share.
(d) Sold 110 shares of treasury stock at $38 per share.