Question

Kieso, Intermediate Accounting, 16e Help I S VERSİON .BA X Problem 15 Metlock Corporation's charter authorized issuance of 92,000 shares of $10 par value common stock and 51,400 shares of $50 preferred stock. The following transactions involving the issuance of shares of stock were completed. Each transaction is independent of the others , Issued a $10.700. 10% bond payable at par and gave as a bonus one share of preferred stock, which at that time was selling for $104 a share. issued 70 s wes common dok foi eguǐprnent. The au r ent had been appraised at S6 000: the seller's book value was $5,900. The most recent market price of the common stock is $16 a share. 3. Issued 308 shares of common and 99 shares of preferred for a lump sum amounting to $10,000. The common had been selling at $14 and the preferred at $62 4. Issued 190 shares of common and 51 shares of preferred for equipment. The common had a fair value of $16 per share; the equipment has a fair value of $6,100 Record the t $38,487. Credit account titles are automatically enter o for the amounts.) indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and Credit

Answer 1

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Event	Account	Debit	Credit
1	Cash	$                    10,700
	Discount on Bond Payable	$                         104
	Bond Payable		$   10,700
	Preferred Stock		$           50
	Paid-in Capital in Excess of par-Preferred (104-50)		$           54
	(Being bond issued on discount for cash and preferred stock)
2	Equipment (470*16)	$                      7,520
	Common Stock (470*10)		$     4,700
	Paid-in Capital in Excess of par-Common (470*6)		$     2,820
	(being equipment purchased in exchange of common stock)
3	Cash	$                    10,000
	Preferred Stock (99*50)		$     4,950
	Paid-in Capital in Excess of par-Preferred (5242-4950)		$         292
	Common Stock (398*10)		$     3,980
	Paid-in Capital in Excess of par-Common (4758-3980)		$         778
	(being preferred and common stock issued)
	Working :
	Fair Market Value of Common	398*14	$     5,572
	Fair Market Value of Preferred	99*62	$     6,138
	Total Fair Market Value		$   11,710
	Allocation:
	Common Stock	5572/11710*10000	$     4,758
	Prefered Stock	6138/11710*10000	$     5,242
4	Cash	$                      6,100
	Preferred Stock (51*50)		$     2,550
	Paid-in Capital in Excess of par-Preferred (3060-2550)		$         510
	Common Stock (190*10)		$     1,900
	Paid-in Capital in Excess of par-Common (3040-1900)		$     1,140
	(being preferred and common stock issued)
	Working :
	Fair Value of Equipment		$     6,100
	Fair Market Value of Common	190*16	$     3,040
	Value assigned to Preferred Stock		$     3,060