Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Indigo Corporation's charter authorized issuance of 92,000 shares of $10 par value common stock and 51,400 shares of $50 preferred stock. The following transactions involving

image text in transcribedimage text in transcribedimage text in transcribed

Indigo Corporation's charter authorized issuance of 92,000 shares of $10 par value common stock and 51,400 shares of $50 preferred stock. The following transactions involving the issuance of shares of stock were completed. Each transaction is independent of the others. Issued a $10,700, 10% bond payable at par and gave as a bonus one share of preferred stock, which at that time was selling for $104 a 1. share. Issued 47O shares of common stock for equipment. The equipment had been appraised at $6,900; the seller's book value was $5,900. The most recent market price of the common stock is $16 a share. 2. Issued 398 shares of common and 99 shares of preferred for a lump sum amounting to $10,000. The common had been selling at $14 and the preferred at $62. 3. Issued 19O shares of common and 51 shares of preferred for equipment. The common had a fair value of $16 per share; the equipment has a fair value of $6,100. 4. Record the transactions listed above in journal entry form. (Round Round intermediate calculations to 6 decimal places, e.g. O.546872 and final answers to 0 decimal places, e.g. $38,487. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) No. Account Titles and Explanation Credit Debit 1 2 3. 4 eTextbook and Media

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Audit Sampling An Introduction

Authors: Dan M. Guy, D. R. Carmichael, O. Ray Whittington

5th Edition

047137590X, 978-0471375906

More Books

Students also viewed these Accounting questions