Question 1 Hernandez Company had the following stock transactions during the yea

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Question 1

Hernandez Company had the following stock transactions during the year:

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

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

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

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

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

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

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

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.

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

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

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

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

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

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

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:

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.

05/05 Record date of record entry.

05/10 Paid cash dividends.

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.

11/5 Record date of record entry.

11/20 Paid cash dividends

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.

12/08 Record date of record entry.

12/16 issued certificated for common stock dividend.

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

Explanation / Answer

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

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