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.)

No.

Account Titles and Explanation

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. 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

(All amounts in $) No. Account Titles and Explanation Debit Credit 1 Cash/Bank A/c DR 14306 To 8% Bond Payable A/c 14200 To Preferred Stock A/c 50 To Excess Over Paid-up Capital A/c 56 2 Equipment A/c DR 10720 To Common Stock A/c 6700 To Excess Over Paid-up Capital A/c 4020 Appraisal Loss A/c DR 3330 To Equipment A/c 3330 3 Cash/Bank A/c DR 11530 To Common Stock A/c 4050 To Preferred Stock A/c 4000 To Excess Over Paid-up Capital A/c 3480 4 Equipment A/c 7370 To Common Stock A/c 2150 To Preferred Stock A/c 2400 To Excess Over Paid-up Capital A/c 1290 To Appraisal Gain A/c 1530

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