14(a) Flashcards
In a corporate firm of business organization, legal capital is best defined as
The par or stated value of all capital stock issued
when a corporation issues it’s capital stock in payment for services, the least appropriate basis for recording the transaction is the
Market value of the services received or the market value of the shares issued.
Manning company issued 10,000 shares of its five dollar power value common stock having a fair value of $20 per share and 15,000 shares of its $15 power you preferred stock having a fair value of $20 per share for a lump sum of $520,000. How much of the proceeds would be allocated to common stock?
$236,364
A primary source of stockholders equity is
both income retained by the corporation and contributions by stockholders
Barry corporation has 100,000 shares of $10 per common stock authorized. The following transactions took place during 2025, the first year of the corporation’s existence: sold 20,000 shares of common stock for $13.50 per share. Issued 20,000 shares of common stock in exchange for a patent valued at $300,000. at the end of the Berry’s, first year, the total paid-in capital was
$570,000
Parker corporation has issued 2000 years of common stock in 400 shares of preferred stock for a lump sum of $72,000 cash.
record for the issuance assuming par value of common stock was $5 fair value $30, preferred stock was $40 and fair value $50. [understand how to record without a FV]
cash = $72,000
Common stock $10,000
PIC - CS $44,000
Preferred stock $16,000
PIC - PS $2,000
grabbing company issued 6000 shares if it’s $5 par value common stock having a fair value of $25 per share and 9000 shares if it’s $15 power value preferred stock having a fair value of $20 per year for a lump sum of $310,000. The amount of the proceeds allocated to the common stock is
$140,909
A corporation was organized in January 20 26 with authorized capital of 10 Mallory value common stock. On February 1, 2026, 1000 shares were issued at par for cash. On March one, 2026, the corporation’s attorney accepted 7000 shares of common stock and settlement for legal services with the fair value of $90,000. Additional paid in would total
$20,000
A corporation was organized in January 20 26 with authorized capital of $10 par value common stock. In February one, 2026, 1000 shares were issued at Work for cash. On March one, 2026, the corporation’s attorney accepted 7000 shares of common stock settlement for legal services with the fair value of $90,000. On March 1, 2026 the common stock account with total
$80,000
Common stock $1 par $3,500,000
PIC - CS 550,000
8 1/2% preferred stock, $50 par 2,000,000
PIC - PS 400,000
Retained Earnings 1,500,000
Treasury Common stock (at cost) 150,000
the total stockholders equity is
$7,800,000
Manning company issued 10,000 shares of its $5 par value common stock having a fair value of $25 per share and 15,000 shares of its $15 par you preferred stock with an unknown fair value for a lump sum of $520,000. How much of the proceeds would be allocated to common stock?
$250,000
