Question

Brief Exercise 18-4 (Algo) Stock issued [L018-4) 2 Hamilton Boats issued 246,500 shares of its no-par common stock to Sudoku Motors in exchange for 1,450 four-stroke outboard motors that normally sell in quantity for $3,400 each By what amount should Hamilton's shareholders' equity increase as a result of this transaction? ts awarded Scored Shareholders' equity $ 357,425,000 eBook Prim

Answer 1

Solution: Shareholder's Equity $4,930,000

Explanation: Following journal entry will be passed

Four-stroke outward motors (1,450 * $3,400)	$4,930,000
Common Stock		$4,930,000
(To issued 246,500 shares of no par common stock to Sudoku motors)

Hence, Shareholder's Equity will be increased by $4,930,000.

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