Question Completion Status QUESTION 1 $ - Safari Fusion reported shareholders' equity as follows: Preferred stock,...

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Answer 1

Answer #1

1. Average issue price of the common stock

This formula calculates the average issue price per share of stock: [(number of shares issued X par value) + paid in capital] / number of shares issued.

= (15,000 X $1) + 45,000 / 15,000

= $4

2. Journal Entry

	Debit	Credit

Cash (1,000 shares x $4 per share)	4,000
Common Stock, $1 par (1,000 shares x $1 par per share)		1,000
Paid-In Capital in Excess of Par Value—Common (4,000 cash – 1,000 par)		3,000
To record the issuance of 1,000 shares of stock for cash.

3. The number of shares outstanding for Safari are 16,000 common stock. 15,000 shares were issued earlier and 1,000 have been issued through the Journal Entry above,

4. If the shares are split as 3 for 1, then the total shares outstanding would be 48,000 shares.

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Answer 2

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Question Completion Status QUESTION 1 $ - Safari Fusion reported shareholders' equity as follows: Preferred stock,...

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