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I have the first part but need help with the last 2 parts. Thank you in advance. Young Corporation has been operating successfully for several
I have the first part but need help with the last parts. Thank you in advance.
Young Corporation has been operating successfully for several years. It is authorized to issue shares of nopar common stock and shares of $ par preferred stock. The Contributed Capital section of its January balance sheet is as follows:
preferred stock, $ par $
Common stock, no par
Additional paidin capital on preferred stock
$
Part a A shareholder has raised the following questions:
What is the legal capital of the corporation?
At what average price per share has the preferred stock been issued?
How many shares of common stock have been issued the common stock has been issued at an average price of $ per share
Part b The company engaged in the following transactions in :
Mar. Issued shares of the preferred stock at a price of $ per share.
Apr. Sold shares of common stock for $ per share.
Issued shares of common stock in exchange for land. The stock is currently selling at $ per share.
June Reacquired shares of common stock at $ per share. The company uses the cost method to account for treasury stock.
Oct. Issued for $ a combination of shares of common stock and shares of preferred stock. The common and preferred stock are currently selling for $ and $ per share, respectively.
Nov. Reissued the shares of treasury stock at $ per share.
Dec. Distributed an $pershare dividend on all preferred stock outstanding and a $pershare dividend on all common stock outstanding on this date debit Retained Earnings and credit Cash for each dividend
Required:
Answer the questions in Part a
Prepare journal entries to record the transactions in Part b
Prepare the Contributed Capital section of Youngs December balance sheet.
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