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Grouper Corporation is authorized to issue 22,000 shares of $50 par value, 10% preferred stock and 125,000 shares of $5 par value common stock. On
Grouper Corporation is authorized to issue 22,000 shares of $50 par value, 10% preferred stock and 125,000 shares of $5 par value common stock. On January 1, 2022, the ledger contained the following stockholders equity balances.
During 2022, the following transactions occurred.
Feb. | 1 | Issued 1,900 shares of preferred stock for land having a fair value of $125,000. | |
Mar. | 1 | Issued 1,000 shares of preferred stock for cash at $70 per share. | |
July | 1 | Issued 17,000 shares of common stock for cash at $7 per share. | |
Sept. | 1 | Issued 550 shares of preferred stock for a patent. The asking price of the patent was $31,500. Market price for the preferred stock was $71 and the fair value for the patent was indeterminable. | |
Dec. | 1 | Issued 8,250 shares of common stock for cash at $7.50 per share. | |
Dec. | 31 | Net income for the year was $257,000. No dividends were declared. |
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