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Cheetah Corporations charter authorized issuance of 500,000 shares of $1 par value common stock and 250,000 shares of $100 preferred stock. The following transactions involving
Cheetah Corporations charter authorized issuance of 500,000 shares of | |||||||||||||||||||||
$1 par value common stock and 250,000 shares of $100 preferred stock. The following transactions involving the issuance of | |||||||||||||||||||||
shares of stock were completed. Each transaction is independent of the others. | |||||||||||||||||||||
1. Issued a $100,000 8% bond payable at par and gave as a bonus ten shares of preferred stock, which at that time was selling | |||||||||||||||||||||
for $102 a share. | |||||||||||||||||||||
2. Issued 7,500 shares of common stock for land. The land had been appraised at $91,100; the sellers book value was $54,600. | |||||||||||||||||||||
The most recent market price of the common stock is $12 a share. | |||||||||||||||||||||
3. Issued 5,000 shares of common and 50 shares of preferred for a lump sum amounting to $68,800. The common had been | |||||||||||||||||||||
selling at $13 and the preferred at $110. | |||||||||||||||||||||
4. Issued 800 shares of common and 50 shares of preferred for equipment. The common had a fair value of $21 per share; the | |||||||||||||||||||||
equipment has a fair value of $21,900.
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