P 20-7A (L03) (e) Dr. Building: $140,000 STATED VALUE, COMMON AND PREFERRED STOC

Question

P 20-7A (L03) (e) Dr. Building: $140,000 STATED VALUE, COMMON AND PREFERRED STOCK, AND NONCASH ASSETS Kris Kraft Stores had the following stock transactions during the year (a) Issued 8,000 shares of no-par common stock with a stated value of $5 per share for $40,000 cash (b) Issued 6,000 shares of no-par common stock with a stated value of $5 per share for $33,000 cash Issued 5,000 shares of no-par, 6% preferred stock with a stated value of $15 per share for $75,000 cash 807 808 (c) (d) Issued 10,000 shares of $5 par common stock for land with a fair market value of $50,000 (e) Issued 20,000 shares of $5 par common stock with a $7 fair market value for a building with an uncertain fair market value.

Explanation / Answer

Solution:-

Please Rate or comment if you have any doubt regarding this solution.

Transaction General Journal Debit Credit (a) Cash 40,000 Common stock no par 40,000 (b) Cash 33,000 Common stock (6,000 * 5) 30,000 Paid-in capital in excess of par- common stock 3,000 (c) Cash 75,000 6% Preferred stock 75,000 (d) Land 50,000 Common stock 50,000 (e) Building 140,000 Common stock 100,000 Pain-up capital in excess of par- common stock 40,000 (f) Land 405,000 8% preferred stock (8,000 * $50) 400,000 Paid-up capital in excess of par - preferred stock 5,000

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.