Seles Corporation’s charter authorized issuance of 101,800 shares of $10 par val

Question

Seles Corporation’s charter authorized issuance of 101,800 shares of $10 par value common stock and 51,500 shares of $50 preferred stock. The following transactions involving the issuance of shares of stock were completed. Each transaction is independent of the others.

Record the transactions listed above in journal entry form. (Round answers to 0 decimal places, e.g. $38,487. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

1. Issued a $14,200, 8% bond payable at par and gave as a bonus one share of preferred stock, which at that time was selling for $106 a share. 2. Issued 670 shares of common stock for equipment. The equipment had been appraised at $7,390; the seller’s book value was $6,300. The most recent market price of the common stock is $16 a share. 3. Issued 405 shares of common and 80 shares of preferred for a lump sum amounting to $11,530. The common had been selling at $14 and the preferred at $66. 4. Issued 215 shares of common and 48 shares of preferred for equipment. The common had a fair value of $16 per share; the equipment has a fair value of $7,370.

Explanation / Answer

Issued a $14,200, 8% bond payable at par and gave as a bonus one share of preferred stock, which at that time was selling for $106 a share.

General reserve A/c

To Bonus to share holders A/c

Bonus to share holders A/c

To preferred stock A/c

14,200

14,200

41,200

14,200

Issued 670 shares of common stock for equipment.

equipment A/c

general reserve A/c

To common stock A/c

The equipment had been appraised at $7,390 - 6,300 =1090

equipment A/c

Revaluation Surplus A/c

6,300

4,420

1,090

10,720

1,090

Issued 405 shares of common and 80 shares of preferred for a lump sum amounting to $11,530

Bank A/c

To common stock A/c

To preferred stock A/c

To Share Premium Account

5,670

5,280

580

Issued 215 shares of common and 48 shares of preferred for equipment.

equipment A/c

   To common stock A/c

To preferred stock A/c

To Paid-in Capital in Excess of Par Value

7,370

3,440

768

3,162

sl. no. journal entry debit credit 1

Issued a $14,200, 8% bond payable at par and gave as a bonus one share of preferred stock, which at that time was selling for $106 a share.

General reserve A/c

To Bonus to share holders A/c

Bonus to share holders A/c

To preferred stock A/c

14,200

14,200

41,200

14,200

2

Issued 670 shares of common stock for equipment.

equipment A/c

general reserve A/c

To common stock A/c

The equipment had been appraised at $7,390 - 6,300 =1090

equipment A/c

Revaluation Surplus A/c

6,300

4,420

1,090

10,720

1,090

3

Issued 405 shares of common and 80 shares of preferred for a lump sum amounting to $11,530

Bank A/c

To common stock A/c

To preferred stock A/c

To Share Premium Account

11,530

5,670

5,280

580

4

Issued 215 shares of common and 48 shares of preferred for equipment.

equipment A/c

   To common stock A/c

To preferred stock A/c

To Paid-in Capital in Excess of Par Value

7,370

3,440

768

3,162

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