Reference no: EM131128281
Newgen Products Inc., a wholesaler of office products, was organized on February 20 of the current year, with an authorization of 75,000 shares of 2% preferred stock, $50 par and 400,000 shares of $15 par common stock. The following selected transactions were completed during the first year of operations:
Feb. 20. Issued 150,000 shares of common stock at par for cash
26. Issued 500 shares of common stock at par to an attorney in payment of legal fees for organizing the corporation.
Mar. 6. Issued 18,000 shares of common stock in exchange for land, buildings, and equipment with fair market prices of $50,000, $275,000, and $60,000, respectively
Apr. 30. Issued 20,000 shares of preferred stock at $60 for cash
Journalize the transactions.
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Determine the following amounts before the stock
: Determine the following amounts after the stock dividend was declared and closing entries were recorded at the end of the year:
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The important dates in connection with a cash dividend
: The important dates in connection with a cash dividend of $69,500 on a corporation’s common stock are May 3, June 17, and August 1. Journalize the entries required on each date.
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What will be the impact on its capital ratio
: Oldhat decides to invest the $77 million in excess reserves in commercial loans. What will be the impact on its capital ratio? Its risk-weighted capital ratio?
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What would be the annual adjustment
: Congress allowed Oldhat to amortize the loss over the remaining life of the mortgage. If this technique was used in the sale, how would the transaction have been recorded? What would be the annual adjustment? What does Oldhat’s balance sheet look lik..
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Issued shares of preferred stock
: Mar. 6. Issued 18,000 shares of common stock in exchange for land, buildings, and equipment with fair market prices of $50,000, $275,000, and $60,000, respectively
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How does this affect its capital position
: Bank regulators force Oldhat to sell its mortgages to recognize the fair market value. What is the accounting transaction? How does this affect its capital position?
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What is the market value of oldhats mortgages
: The next day, terrible news hits the mortgage markets, and mortgage rates jump to 13%. What is the market value of Oldhat’s mortgages? What is Oldhat’s “market value” capital ratio?
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Calculate the risk-weighted assets and risk weighted capital
: Calculate the risk-weighted assets and risk-weighted capital ratio after Oldhat’s first day.
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Journalize the two entries to record the transactions
: All shares within each class of stock were sold at the same price. The preferred stock was issued in exchange for the land and buildings.
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