ZuoTi.Pro
Question

On January 1st, the firm conducts an IPO. The firm has 1,070,000 shares authorized and decides to issue 530,000 common shares
A credit guarantee is created when a firm cosigns a note payable for supplier or customer. True False
business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Number of shares issued = 530,000 shares

Par value = $0.06

Value = $25

Additional paid-in capital is credited with 530,000 * (25- 0.06) = $13,218,200

So, firm should record $13,218,200 in the additional paid-in capital account.

2) Yes, the statement is true,

Credit guarantee is created when a firm consigns a note payable for supplier or customer

0 0
Add a comment
Know the answer?
Add Answer to:
On January 1st, the firm conducts an IPO. The firm has 1,070,000 shares authorized and decides...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • On January 1st, the firm repurchase 3,800 shares of $0.01 par value common stock for $48...

    On January 1st, the firm repurchase 3,800 shares of $0.01 par value common stock for $48 cash per share. On January 31st, the firm resells 310 of the repurchased shares for $35 cash per share. What value does the firm record as decrease to the treasury stock account on January 31st? Your Answer: Answer On January 1st, the firm repurchase 7,700 shares of $0.10 par value common stock for $49 cash per share. On January 31st, the firm resells 200...

  • Poodle Corporation was organized on January 3, 2018. The firm was authorized to issue 94,000 shares...

    Poodle Corporation was organized on January 3, 2018. The firm was authorized to issue 94,000 shares of $5 par common stock. During 2018, Poodle had the following transactions relating to shareholders' equity: Issued 28,000 shares of common stock at $6.00 per share. Issued 18,000 shares of common stock at $8.20 per share. Reported a net income of $107,000. Paid dividends of $59,000. What is total Paid-in capital at the end of 2018? Multiple Choice $315,600 $316,600. $422,600. Reported a net...

  • Record each transaction, from March 1st-Dec 31st Donnie Hilfiger has two classes of stock authorized: $1...

    Record each transaction, from March 1st-Dec 31st Donnie Hilfiger has two classes of stock authorized: $1 par preferred and $0.01 par value common. As of the beginning of 2021, 440 shares of preferred stock and 5,400 shares of common stock have been issued. The following transactions affect stockholders' equity during 2021: March 1 Issue 2,500 shares of common stock for $56 per share. May 15 Purchase 540 shares of treasury stock for $49 per share. July 10 Resell 340 shares...

  • Roberto Corporation was organized on January 1, 2018. The firm was authorized to issue 86,000 shares...

    Roberto Corporation was organized on January 1, 2018. The firm was authorized to issue 86,000 shares of $5 par common stock. During 2018, Roberto had the following transactions relating to shareholders' equity: Issued 9,400 shares of common stock at $5.50 per share. Issued 19,400 shares of common stock at $9.70 per share. Reported a net income of $104,000. Paid dividends of $46,000. Purchased 2,300 shares of treasury stock at $11.70 (part of the 19,400 shares issued at $9.70). What is...

  • Roberto Corporation was organized on January 1, 2018. The firm was authorized to issue 96,000 shares...

    Roberto Corporation was organized on January 1, 2018. The firm was authorized to issue 96,000 shares of $5 par common stock. During 2018, Roberto had the following transactions relating to shareholders' equity: Issued 10,500 shares of common stock at $6.80 per share. Issued 19,200 shares of common stock at $9.40 per share. Reported a net income of $99,000. Paid dividends of $53,000. Purchased 3,000 shares of treasury stock at $11.40 (part of the 19,200 shares issued at $9.40). What is...

  • PDC Corporation is authorized to issue 1,000,000 shares of $1 par value common stock. During 2016,...

    PDC Corporation is authorized to issue 1,000,000 shares of $1 par value common stock. During 2016, the company has the following stock transactions. Journalize the transactions for PDC Corporation. Jan. 15 Issued 700,000 shares of stock at $7 per share Dr. Cash $ 4,900,000 Cr Paid-in Capital in Excess of Par Value Common Stock $ Sept 5 Purchased 30,000 shares of common stock for the treasury at $6 per share Cr. Cash Dec 6 Declared a $0 50 per share...

  • Roberto Designers was organized on January 1, 2021. The firm was authorized to issue 150,000 shares...

    Roberto Designers was organized on January 1, 2021. The firm was authorized to issue 150,000 shares of $5 par value common stock During 2021, Roberto had the following transactions relating to stockholders' equity Issued 15,000 shares of common stock at $7 per share. Issued 30,000 shares of common stock at $8 per share. Reported a net income of $150,000 Paid dividends of $75,000. Purchased 2,500 shares of treasury stock at $10 (part of the 30,000 shares issued at $8) What...

  • A corporation is authorized by its corporate charter to issue 10,000 shares of preferred stock with...

    A corporation is authorized by its corporate charter to issue 10,000 shares of preferred stock with a 7% dividend rate and a par value of $3 per share, and 25,000 shares of common stock with a par value of $1 per share. On January 15, 2015, 1,000 shares of preferred stock were issued for $7 per share along with 10,000 shares of common stock for $5.50 per share. How much would each account increase by for the issuance of the...

  • On January 2, 2011, Blueman Corporation was incorporated in the province of Ontario. It was authorized...

    On January 2, 2011, Blueman Corporation was incorporated in the province of Ontario. It was authorized to issue an unlimited number of no-par value common shares, and 25,000 shares of no-par, $8, cumulative and non-participating preferred. During 2011, the firm completed the following transactions: Jan 8 Accepted subscriptions for 34,000 common shares at $12 per share. Down payment received on the subscribed shares was 50%. Jan 30 Issued 10,000 preferred shares in exchange for the following assets: machinery with a...

  • Apex Co. was organized on January 1, 2015. It is authorized to issue 60,000 shares of...

    Apex Co. was organized on January 1, 2015. It is authorized to issue 60,000 shares of 6%, $100 par value preference shares, and 600,000 shares of ordinary shares with a par value of $1 per share. The following share transactions were completed during the first year. Date Transaction January, 10 Issued 70,000 ordinary shares for cash at $6 per share. March, 1 Issued 10,000 preference shares for cash at $140 per share. April, 1 Issued 40,000 ordinary shares for equipment....

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT