Question
Recording Entries for Common Stock Issuance Record journal entries for the following separate transactions. Note: As needed, use the account Common Stock for parts a
Recording Entries for Common Stock Issuance Record journal entries for the following separate transactions.
Note: As needed, use the account "Common Stock" for parts a through e, and use the accounts "Common Stock-Class A" and "Common Stock-Class B' for parts fand g.
Note: As needed, use the account "Paid-in Capital in Excess of Par--Common Stock" for parts a through e, and use the accounts "Paid-in Capital in Excess of Par--Class A Common Stock" and
"Paid-in Capital in Excess of Par--Class B Common Stock" for parts fand g.
A. Max Inc. issued 7,000 shares of $1 par value common stock for $20 per share.
B. Max Inc. issued 1,400 shares of no-par common stock for $25 per share. The state of incorporation requires a minimum value per share of $2.
C. Max Inc. issued 700 shares of no-par common stock for $18 per share.
D. Max Inc. issued 7,000 shares of $1 par value common stock for $18 per share and incurred $1,400 in legal fees related to the stock issuance.
E. Max Inc. issued 14,000 shares of common stock ($1 par) in exchange for equipment with a fair value of $249,200.
F. Max Inc. issued 4,200 shares of Class A common stock ($1 par) and 5,600 shares of Class B common stock ($2 par) for $112,000 cash. At the time of issuance, the market price of the Class A common stock is $15 per share, and the market price of the Class B common stock is $10 per share.
G. Max Inc. issued 4,200 shares of Class A common stock ($1 par) and 5,600 shares of Class B common stock ($2 par) for $119,000 cash. At the time of issuance, the market price of the Class A common stock is $16 per share, and the market price of the Class B common stock is unknown.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started