the following transactions relate to the selling andrepurchasing of common and p
ID: 2434028 • Letter: T
Question
the following transactions relate to the selling andrepurchasing of common and preffered shares. A) prepare general journal entries for the transactions thatfollows. Some of the Journal entries will be dependent on priorones. Nov 1. 75000 shares of common stock were issuedand sold at the price of $57. Nov 2. 100 shares of common stock @ $57 weregiven in exchange for the costs of organizing the business. Nov 5. 5000 shares of preffered stockwere sold at $100 in exchange for a building, cumulativeand callable @ $110, dividend $4. Nov 10. 1000 shares of common stock wererepurchased for $57. B) What amount would be listed in the fixed assets fororganizational costs? C) Calculate the amount of the first year ofamortization. D) Calculate the number of common shares outstandingafter these transactions. E) Using the correct table format, prepare the CapitalStock section of Shareholder's Equity for the balance sheet. I need it Asap ...I will give the person the highest point.... the following transactions relate to the selling andrepurchasing of common and preffered shares. A) prepare general journal entries for the transactions thatfollows. Some of the Journal entries will be dependent on priorones. Nov 1. 75000 shares of common stock were issuedand sold at the price of $57. Nov 2. 100 shares of common stock @ $57 weregiven in exchange for the costs of organizing the business. Nov 5. 5000 shares of preffered stockwere sold at $100 in exchange for a building, cumulativeand callable @ $110, dividend $4. Nov 10. 1000 shares of common stock wererepurchased for $57. B) What amount would be listed in the fixed assets fororganizational costs? C) Calculate the amount of the first year ofamortization. D) Calculate the number of common shares outstandingafter these transactions. E) Using the correct table format, prepare the CapitalStock section of Shareholder's Equity for the balance sheet. I need it Asap ...I will give the person the highest point....Explanation / Answer
Nov 1 Cash 4,275,000 CommonStock 4,275,000 (75,000*$57) Nov 2 OrganizationalCosts 5,700 CommonStock 5,700 (100*$57) Nov 5 Building 500,000 PreferredStock 500,000 (5,000*$100) Nov 10 Treasury Stock 57,000 Cash 57,000 (1000*$57) B)Fixed asset of organization cost is $5,700 C) Amortization = $4*5,000 = $20,000 D) Number of share outstanding = 75,000 + 100 - 1,000 = 74,100 E) Balance Sheet(Partial) Capital Stock PreferredStock 500,000 CommonStock 4,332,000 total CapitalStock 4,832,000
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