accounting 454631

Aug 29, 2021 | Uncategorized

Complete each question record transactions

Question 1

Hernandez Company had the following stock transactions during the year:

  1. Issued 25,000 shares of $1 par common stock for $25,000.

  2. Issued 20,000 shares of $1 par common stock for $22,000 cash.

  3. Issued 22,000 shares of $1 par common stock for $21,000 cash.

  4. Issued 2,000 shares of $50 par, 8% preferred stock for $100,000 cash.

  5. Issued 1,000 shares of $50 par, 8% preferred stock for $49,000 cash.

  6. Issued 1,000 shares of $50 par 8% preferred stock for $51,500

  7. Issued 2,500 shares of no par common stock for $11,875 cash

  8. Issued 1,500 shares of no par 7% preferred stock for $72,000 cash.

Question 2

Kris Kraft Stores had the following stock transactions during the year.

  1. Issued 4,000 shares of no par common stock with a stated value of $10 per share for $40,000 cash.

  2. Issued 6,000 shares of no par common stock with a stated value of $8 per share for $50,000 cash.

  3. Issued 5,000 shares of no par 6% preferred stock with a stated value of $15 per share for $75,000 cash.

  4. Issued 3,000 shares of no par 6% preferred stock with a stated value of $20 per share for $58,000 cash.

  5. Issued 10,000 shares of $8 par common stock with a $9 fair market value for a building with an uncertain fair market value.

  6. Issued 10,000 shares of $5 common stock for land with a fair market value of $50,000.

  7. Issued 8,000 shares of $50 par, 8% preferred stock for land with a fair market value of $405,000.

Question 3

During the year ended December 21, 2013, Smith Company completed the following transactions:

  1. 04/15 Declared a semiannual dividend of $0.80 per share on preferred stock and $0.05 per share on common stock to shareholders of record on 05/05, payable on 05/10. Currently, 4,000 shares of $100 par preferred stock and 50,000 shares of $1 par common stock are outstanding.

  2. 05/05 Record date of record entry.

  3. 05/10 Paid cash dividends.

  4. 10/15 Declared semiannual dividend of $0.80 per share on preferred stock and $0.50 per share on common stock to shareholders of record on November 5, payable on November 20.

  5. 11/5 Record date of record entry.

  6. 11/20 Paid cash dividends

  7. 11/22 Declared a 10% stock dividend to shareholders of record on December 8, distributable on December 16. Market value of the common stock was estimated to be $8.

  8. 12/08 Record date of record entry.

  9. 12/16 issued certificated for common stock dividend.

  10. 12/20 Board of directors declared a two for one common stock split.