Question

Problem 15-04

Sheridan Corporation’s charter authorized issuance of 97,000 shares of $10 par value common stock and 53,600 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 $9,400, 10% bond payable at par and gave as a bonus one share of preferred stock, which at that time was selling for $96 a share.
2.		Issued 450 shares of common stock for equipment. The equipment had been appraised at $6,400; the seller’s book value was $5,700. The most recent market price of the common stock is $15 a share.
3.		Issued 339 shares of common and 100 shares of preferred for a lump sum amounting to $11,500. The common had been selling at $13 and the preferred at $66.
4.		Issued 190 shares of common and 52 shares of preferred for equipment. The common had a fair value of $15 per share; the equipment has a fair value of $6,200.

Record the transactions listed above in journal entry form.

Answer 1

SR.no	Particulars			In dollars ($)
				Debit	Credit
1	Cash /Bank			902400
	Bonds issued				902400
2	Equipment			6400
	Bonds issued				6400
3	Cash/Bank			11500
	Bonds issued				11500
4	Equipment			6200
	Bonds issued				6200