Chapter 11 Checkpoint Problem #1

I. Barney Corporation was authorized to issue 50,000 shares of common stock. REQUIRED: On June 1, Barney Corporation issued 28,000 shares of common stock for $15 per share cash. Give the general journal entry required to record the issue of the 28,000 shares of stock at $15 per share assuming that the common stock A. has a par value of $6 per share. B. has a stated value of $10 per share. C. has no par and no stated value. II. Wilma Corporation was authorized to issue 200,000 shares of $8-par value common stock and 50,000 shares of $50-par value, 6%, cumulative preferred stock. REQUIRED: A. Give the general journal entries required to record the following transactions for Wilma Corporation. 1. Issued 40,000 shares of common stock for $13 per share cash. 2. Issued 15,000 shares of common stock in exchange for land. On the date of the exchange, the common stock had a market price of $15 per share. 3. Issued 50,000 shares of preferred stock for $60 per share cash. II. (continued) 4. Issued 10,000 shares of common stock in exchange for land. On the date of the exchange, the common stock had a market price of $18 per share. B. Answer the following questions, based on your journal entries in Part A. 1. How many shares of common stock are outstanding? 2. How many shares of preferred stock are outstanding? 3. What is the total stockholders' equity? 4. What is the total legal capital in dollars?