Answer | |||
Journal entries | |||
Particulars | Debit($) | Credit($) | |
Receivable stock subscription | $ 1,200,000 | 50000*24 | |
Subscribed common stock | $ 1,200,000 | ||
Cash | $ 444,000 | 1200000*37% | |
Receivable stock subscription | $ 444,000 | ||
Cash | $ 756,000 | 1200000*63% | |
Receivable stock subscription | $ 756,000 | ||
Subscribed common stock | $ 1,200,000 | ||
Common stock | $ 1,200,000 |
Concord Inc. decided to sell shares to raise additional capital so that it could expand into...
Splish Ltd. offered to sell common shares on a subscription
basis. Each subscription allowed for the purchase of 20 shares at a
price of $80 per share. Terms of the subscription stated that
subscribers were to pay 40% of the price as a down payment, with
the remainder due in six months. On June 1, 2020, 210 subscriptions
were sold. Six months later, on December 1, only 105 of the
subscriptions were fully paid for. According to the subscription
contract,...
View Policies Current Attempt in Progress Marigold Ltd. offered to sell common shares on a subscription basis. Each subscription allowed for the purchase of 10 shares at a price of 548 per share. Terms of the subscription stated that subscribers were to pay 50% of the price as a down payment, with the remainder due in six months. On June 1, 2020. 150 subscriptions were sold. Six months later, on December 1, only 75 of the subscriptions were fully paid...
Pronghorn Corporation showed the following information on its
financial statements on December 31, 2021:
Preferred Shares, no par value $5 cumulative, 380,000 shares
authorized,
190,000 shares issued and
outstanding
$34,200,000
Common Shares, no par value, unlimited shares authorized,
450,000 shares issued and
outstanding
$13,500,000
The following transactions occurred, in the order given, during
2022:
(a)
April 15: Received subscriptions and down payments for 115,000
common shares at $38 per share. The subscription contracts call for
55% of the subscription price...
Grouper Corporation showed the following information on its financial statements on December 31, 2021: Preferred Shares, no par value $8 cumulative, 400,000 shares authorized, 140,000 shares issued and outstanding $28,000,000 Common Shares, no par value, unlimited shares authorized, 460,000 shares issued and outstanding $12,420,000 The following transactions occurred, in the order given, during 2022: (a) April 15: Received subscriptions and down payments for 117,000 common shares at $36 per share. The subscription contracts call for 65% of the subscription price...
Ayayai Inc. has decided to raise additional capital by issuing $185,000 face value of bonds with a coupon rate of 10%. In discussions with investment bankers, it was determined that to help the sale of the bonds, detachable stock warrants should be issued at the rate of one warrant for each $100 bond sold. The value of the bonds without the warrants is considered to be $138,400, and the value of the warrants in the market is $34,600. The bond...
Pina Inc. has decided to raise additional capital by issuing
$168,000 face value of bonds with a coupon rate of 9%. In
discussions with investment bankers, it was determined that to help
the sale of the bonds, detachable stock warrants should be issued
at the rate of one warrant for each $100 bond sold. The value of
the bonds without the warrants is considered to be $154,800, and
the value of the warrants in the market is $17,200. The bonds...
Sandhill Inc. has decided to raise additional capital by issuing
$187,000 face value of bonds with a coupon rate of 9%. In
discussions with investment bankers, it was determined that to help
the sale of the bonds, detachable stock warrants should be issued
at the rate of one warrant for each $100 bond sold. The value of
the bonds without the warrants is considered to be $121,600, and
the value of the warrants in the market is $30,400. The bonds...
Coronado Inc. has decided to raise additional capital by issuing $168,000 face value of bonds with a coupon rate of 9%. In discussions with investment bankers, it was determined that to help the sale of the bonds, detachable stock warrants should be issued at the rate of one warrant for each $100 bond sold. The value of the bonds without the warrants is considered to be $138,550, and the value of the warrants in the market is $24.450. The bonds...
Nash Inc. has decided to raise additional capital by Issuing $168.000 face value of bonds with a coupon rate of 9%. In discussions with investment bankers, it was determined that to help the sale of the bonds, detachable stock warrants should be issued at the rate of one warrant for each $100 bond sold. The value of the bonds without the warrants is considered to be $154,800, and the value of the warrants in the market is $17.200. The bonds...
Sheffield Inc. has decided to raise additional capital by
issuing $175,000 face value of bonds with a coupon rate of 10%. In
discussions with investment bankers, it was determined that to help
the sale of the bonds, detachable stock warrants should be issued
at the rate of one warrant for each $100 bond sold. The value of
the bonds without the warrants is considered to be $126,650, and
the value of the warrants in the market is $22,350. The bonds...