Questionuzi company received a charter granting the right

Assignment Help Auditing

Reference no: EM13348554

Question:

Uzi Company received a charter granting the right to issue 200,000 shares of $1 par value common stock and 10,000 shares of 8% nonparticipating and cumulative, $50 par value preferred stock that is callable at $80 per share. Selected transactions are shown below.

2011

Feb. 19 Issued 45,000 shares of common stock at par for cash.

22 Gave the corporation's promoters 30,000 shares of common stock for their services in getting the corporation organized. The directors valued the services at $50,000.

Mar 30 Exchanged 100,000 shares of common stock for the following assets at fair market values: land, $25,000; building, $100,000; and machinery, $125,000.

Dec. 31 Closed the Income Summary account. A $25,000 loss was incurred.

2012

Jan. 12 Issued 1,000 shares of preferred stock at $75 per share.

Dec. 15 The board of directors declared an 8% dividend on preferred shares and $0.10 per share on outstanding common shares, payable on January 31 to the January 17 stockholders of record.

31 Closed the Income Summary account. A $69,000 net income was earned.

2013

Jan. 31 Paid the previously declared dividends.

Required:

1. Write general journal entries to record the selected transactions.

2. Write a stockholders' equity section as of the close of business on December 31, 2012.

3. Evaluate the book value per preferred share and per common stock as of December 31, 2012.

4. Give a rationale between 200 and 300 words in length for buying or not buying this stock based on the financial information presented.

Reference no: EM13348554

Questions Cloud

Questionwrite down a c program sortc that performs a : questionwrite down a c program sort.c that performs a combine sort on two number sequences produced by program in q1.

Question 1a define motivationb how would you use strategies : question 1a define motivation?b how would you use strategies of motivation to motivate your trainees?question 2a what

Questionwrite down this following program using c language : questionwrite down this following program using c language programming.at unknown university admissions department has

Questionforeign currency translation and hedging : questionforeign currency translation and hedging activities.many companies make annual reports available on their

Questionuzi company received a charter granting the right : questionuzi company received a charter granting the right to issue 200000 shares of 1 par value common stock and 10000

Question 1a evaluation of the duration and degree of : question 1a evaluation of the duration and degree of disability after an occupational accident with a single body

Questiontwo parties a and b try to communicate with : questiontwo parties a and b try to communicate with following encryption scheme-both sides agree on same long random

Questionwinner corporation acquired 80 of the common : questionwinner corporation acquired 80 of the common shares and 70 of the preferred shares of first corporation at

Questionexecute a recursive directory traversal as walking : questionexecute a recursive directory traversal. as walking the file tree you will be looking for duplicate files and

User Account

All Pages