Sources of equity and journalizing stock issuance

Assignment Help Financial Accounting

Reference no: EM131292147

Sources of equity and journalizing stock issuance. This problem continues the Daniels Consulting situation from Problem P12-39 of Chapter 12. Daniels decides to raise additional capital for a planned business expansion by issuing 8,000 additional $2 par value common shares for $24,000 and by issuing 2, 500, 4%, $50 par preferred shares at $55 per share. Assuming total stockholders' equity is $25, 422 and includes 200 shares of common stock and 0 shares of preferred stock issued and outstanding immediately before the previously described transactions, journalize the entries related to the issuances of both common and preferred shares.

Reference no: EM131292147

Questions Cloud

Calculate the amount of the allowance for doubtful accounts : A company uses the aging of accounts receivable method to estimate its bad debts expense. On December 31 of the current year an aging analysis of accounts receivable revealed the following: Calculate the amount of the Allowance for Doubtful Accounts ..

Fifo and average cost inventory methods have on net income : Identify and define the three main sections in the income statement of a merchandising company that are different than those shown on an income statement for a service company. Discuss and compare the effects that the LIFO, FIFO and Average Cost inve..

What is amount of contribution per unit and margin ratio : What is the amount of contribution per unit? What is the contribution margin ratio? Using the contribution margin per unit, compute the break-even point in units. Evaluate the above plans by preparing comparative income statements for the three alter..

Audit test to determine all customer orders are delivered : The external auditor is determining whether the internal controls relative to the revenue cycle are operating effectively, the auditor is concerned the company may fail to ship all of the customers orders. what is the best audit test to determine all..

Sources of equity and journalizing stock issuance : This problem continues the Daniels Consulting situation from Problem P12-39 of Chapter 12. Daniels decides to raise additional capital for a planned business expansion by issuing 8,000 additional $2 par value common shares for $24,000 and by issuing ..

Contradiction between the loss and the positive cash flows : On its income statement for a recent year, Twin Cities Airlines, Inc. reported a net loss of $68 million from operations. On its statement of cash flows, it reported $457 million of cash flows from operating activities. Explain this apparent contradi..

The land now has potential soil and groundwater problems : Mr. Smith is an accrual basis taxpayer with multiple lines of businesses. One business is a gas station. The land underneath the gas station did not appear contaminated when Mr. Smith purchased it. However, the land now has potential soil and groundw..

Determine the amount of noncontrolling interest : Stanger Corporation purchased fifty five percent of Manzini Company on August 31, 2010 and an additional thirty five percent on October 1, 2011. There was no control premium paid. Annual excess amortization of $3,000 related to the first purchase and..

Equipment leasing : D invested $100,000 in an equipment leasing LLC. He was to be allocated all of the depreciation for the first five years and 40% of the net income before depreciation. The venture borrowed $400,000, non-recourse debt? D’s depreciation for the first y..

User Account

All Pages