Question

Coronado Corporation's charter authorized issuance of 91,000 shares of $10 par value common stock and 53,700 shares of $50 preferred stock. The following transactions involving the issuance of shares of stock were completed. Each transaction is independent of the others. 1. Issued a $10,500, 9% bond payable at par and gave as a bonus one share of preferred stock, which at that time was selling for $107 a share. 2. Issued 470 shares of common stock for equipment. The equipment had been appraised at $6,700; the seller's book value was $6,800. The most recent market price of the common stock is $15 a share. 3. Issued 396 shares of common and 109 shares of preferred for a lump sum amounting to $9,800. The common had been selling at $13 and the preferred at $65. 4. Issued 180 shares of common and 53 shares of preferred for equipment. The common had a fair value of $15 per share; the equipment has a fair value of $7,000. Record the transactions listed above in journal entry form. (Round Round intermediate calculations to 6 decimal places, e.g. 0.546872 and final answers to O 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 O for the amounts.)

Please show work (answer of paid-in capital excess of par-common stock is not 1188 and paid-in capital excess of par-preferred stock is not 1635)

Answer 1

3)

	Market value [A]	weight based on market value [B]	Allocation of 9800 proceeds [A*B]	Credited to par value	Credited paid in capital excess of par
Common stock	396*13=5148	5148/12233 = .420829	9800*.420829 =4124	396*10 =3960	4124-3960= 164
Preferred stock	109*65 = 7085	7085/12233=.579171	9800*.579171= 5676	109*50= 5450	5676-5450= 226
Total	12233		9800	9410	390

Paid in capital in excess of par -common stock = 164

Paid in capital in excess of par -preferred stock = 226