13-2 Rodriguez Corporation issued 18,000 shares of its common stock for $160,000. 1. The stock has a $2 par value, 2. The stock has neither par nor stated value. 3. The stock has a $5 stated value. 13-3 Prepare journal entries for each of the following four issuances of stock. 1. A corporation issued 4,000 shares of $5 par value common stock for $40,000. 2. A corporation issued 3,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $50,000. The stock has a $1 per share stated value. 3. A corporation issued 3,000 shares of no-par common stock to its promoters, in exchange for their efforts, estimated to be worth $50,000. The stock has no stated value. 4. A corporation issued 1,500 shares of $50 par value preferred stock for $100,000 cash. 13-4 Sudoku Company issues 9,000 shares of $9 par value common stock in exchange for land and building. The land is valued at $65,000 and the building at $100,000. Prepare the journal entry to record issuance of the stock in exchange for the land and building. Chapter 13 Exercises - Pages 572-575 - Solutions Debit Credit 13-1 e 1. Owner authority and control a 2. Ease of formation d 3. Transferability of ownership f 4. Ability to raise large amounts 8 5. Duration of life h 6. Owners' liability C 7. Legal status b 8. Tax status of income One Vote Per Share Requires government approval Readily transferred High ability Unlimited Limited Separate legal entity Corporate income is taxed 13-2 1) $152.000 $38,000 $114,000 2) Issued 19,000 shares for $152.000 20-Feb $2 par Cash Com Stk (19,000@$2) PICEP-C/S 20-Feb No par or stated Cash Com Stk 20-Feb $5 stated value Cash Com Stk (19,000@$5) PICESV-C/S $152,000 $152,000 $152.000 $95,000 $57,000 13-3 Issued Stock $35.000 Cash Com Stk (4000@$5) PICEP-C/S $20,000 $15,000 $40,000 Organization Expenses Com Stk (2000@ $1 SV) PICESV-C/S $2,000 $38,000 Organization Expenses Common Stock $40,000 $40,000 Cash Pref. Stk(1000@$50) PICEP-P/S $60,000 $50,000 $10,000 13-4 Sudoku issued stock for land and building land Building Com Stk(7,000@$7 par) PICEP-C/S $45,000 $85,000 $49,000 $81,000 13-2 Rodriguez Corporation issued 18,000 shares of its common stock for $160,000. 1. The stock has a $2 par value, 2. The stock has neither par nor stated value. 3. The stock has a $5 stated value. 13-3 Prepare journal entries for each of the following four issuances of stock. 1. A corporation issued 4,000 shares of $5 par value common stock for $40,000. 2. A corporation issued 3,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $50,000. The stock has a $1 per share stated value. 3. A corporation issued 3,000 shares of no-par common stock to its promoters, in exchange for their efforts, estimated to be worth $50,000. The stock has no stated value. 4. A corporation issued 1,500 shares of $50 par value preferred stock for $100,000 cash. 13-4 Sudoku Company issues 9,000 shares of $9 par value common stock in exchange for land and building. The land is valued at $65,000 and the building at $100,000. Prepare the journal entry to record issuance of the stock in exchange for the land and building. Chapter 13 Exercises - Pages 572-575 - Solutions Debit Credit 13-1 e 1. Owner authority and control a 2. Ease of formation d 3. Transferability of ownership f 4. Ability to raise large amounts 8 5. Duration of life h 6. Owners' liability C 7. Legal status b 8. Tax status of income One Vote Per Share Requires government approval Readily transferred High ability Unlimited Limited Separate legal entity Corporate income is taxed 13-2 1) $152.000 $38,000 $114,000 2) Issued 19,000 shares for $152.000 20-Feb $2 par Cash Com Stk (19,000@$2) PICEP-C/S 20-Feb No par or stated Cash Com Stk 20-Feb $5 stated value Cash Com Stk (19,000@$5) PICESV-C/S $152,000 $152,000 $152.000 $95,000 $57,000 13-3 Issued Stock $35.000 Cash Com Stk (4000@$5) PICEP-C/S $20,000 $15,000 $40,000 Organization Expenses Com Stk (2000@ $1 SV) PICESV-C/S $2,000 $38,000 Organization Expenses Common Stock $40,000 $40,000 Cash Pref. Stk(1000@$50) PICEP-P/S $60,000 $50,000 $10,000 13-4 Sudoku issued stock for land and building land Building Com Stk(7,000@$7 par) PICEP-C/S $45,000 $85,000 $49,000 $81,000
