Sometimes Common Stock is issued as a way to pay for an asset such as land...
Sometimes Common Stock is issued as a way to pay for an asset such as land or a patent. Sometimes the asset’s value is known and other times it cannot be determined without undue cost. Also sometimes Common Stock’s market value cannot be readily determined without great cost because the company is private. Regardless of the item acquired, and regardless of whether Common Stock’s market value can be readily determined we use the same type of US GAAP measure to record such transactions. Please name the measure.
Homework Answers
In all these kind of transactions we use fair value measurment. Bcoz measuring fair value can present significant challenges for prepares of financial statement. Bcoz its involves using judgement and estimates.
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Sometimes Common Stock is issued as a way to pay for an asset
such as land...
2 yes! 3 4 YES or NO Questions Preferred Stock can take many complicated forms. It...
2 yes! 3 4 YES or NO Questions Preferred Stock can take many complicated forms. It might be perpetual or have a fixed maturity, it might be cumulative, redeemable, collateralized or secured in other ways. Under certain circumstances is it possible that US GAAP will force us to record Preferred Stock as a LIABILITY rather than as EQUITY in the balance sheet? In general, should it be true that Earnings cannot be generated from Equity Transactions? An equity investor in...
Uw How Calculator Print item Issuing Stock for Assets Other Than Cash On November 23, Elder...
Uw How Calculator Print item Issuing Stock for Assets Other Than Cash On November 23, Elder Lift Corporation, a wholesaler of hydraulic lifts, acquired land in exchange for 20,000 shares of $10 par common stock with a current market price of $18. Journalize the entry to record the transaction. If an amount box does not require an entry, leave it blank. Nov. 23 Land Common Stock Pald-In Capital in Excess of Par-Common Stock r e the Recall the fair value...
A corporation issued 6,000 shares of its $2 par value common stock in exchange for land...
A corporation issued 6,000 shares of its $2 par value common stock in exchange for land that has a market value of $84,000. The entry to record this transaction would include: A credit to Land for $12,000. A credit to Paid-in Capital in Excess of Par Value, Common Stock for $72,000. A debit to Common Stock for $12,000. A debit to Land for $12,000. A credit to Common Stock for $84,000.
On March 15, 2021, Ellis Corporation issued 5,000 shares of its no-par common stock in exchange for a patent. On the d...
On March 15, 2021, Ellis Corporation issued 5,000 shares of its no-par common stock in exchange for a patent. On the date of the transaction, the market price of the common stock was $22 per share. Ellis also received a tract of land from the City of Montrose as an enticement to build a new office building on the site. The land had a fair value of $510,000 and Ellis was required to pay only $200,000 to secure title to...
Astro Corporation recently organized. The company issued common stock to an inventor in exchange for a patent with a ma...
Astro Corporation recently organized. The company issued common stock to an inventor in exchange for a patent with a market value of $55,000. In addition, Astro received cash for 5,000 shares of its $15 par preferred stock at par value and 6,500 shares of its no-par common stock at $50 per share. Without making journal entries, determine the total paid-in capital created by these transactions. The total paid-in capital created by these transactions amounts to $ L .
Pace Tech Market had the following transactions during 2020: 1.Issued $50,000 of par value common stock...
Pace Tech Market had the following transactions during 2020: 1.Issued $50,000 of par value common stock for cash. 2.Repaid a 6 year note payable in the amount of $22,000. 3.Acquired land by issuing common stock of par value $100,000. 4.Declared and paid a cash dividend of $2,000. 5.Sold a long-term investment (cost $53,000) for cash of $82,000. 6.Acquired an investment in PwC stock for cash of $55,000. What is the net cash provided (used) by investing activities? a.$15,000 b.$33,000 c.$27,000...
Mobile Video Systems sold land, investments, and issued their own common stock for $11 million, $16...
Mobile Video Systems sold land, investments, and issued their own common stock for $11 million, $16 million and $21 million respectively. Mobile Video also purchased treasury stock, equipment, and a patent for $2 million $2 million, and $5 million respectively a. What amount should the company report as net cash flows from investing activities? (Negative value should be indicated by minus sign. Enter your answer in millions.) Net cash flow from investing activities b. What amount should the company report...
Axle Corporation recently organized. The company issued common stock to an inventor in exchange for a...
Axle Corporation recently organized. The company issued common stock to an inventor in exchange for a patent with a market value of $59,000. In addition, Axle received cash for 7,000 shares of its $20 par preferred stock at par value and 7,500 shares of its no-par common stock at $45 per share. Without making journal entries, determine the total paid-in capital created by these transactions. The total paid-in capital created by these transactions amounts to $ Rates Corp. issued 1,000...
Bramble's Vegetable Market had the following transactions during 2017: 1. Issued $45000 of par value common...
Bramble's Vegetable Market had the following transactions during 2017: 1. Issued $45000 of par value common stock for cash. 2. Repaid a 6 year note payable in the amount of $17000. 3. Acquired land by issuing common stock of par value $45000. 4. Declared and paid a cash dividend of $7100. 5. Sold a long-term investment (cost $3000) for cash of $5500. 6. Acquired an investment in IBM stock for cash of $9700. What is the net cash provided by...
Bonita’s Vegetable Market had the following transactions during 2016: 1. Issued $53000 of par value common...
Bonita’s Vegetable Market had the following transactions during 2016: 1. Issued $53000 of par value common stock for cash. 2. Repaid a 6 year note payable in the amount of $23000. 3. Acquired land by issuing common stock of par value $53000. 4. Declared and paid a cash dividend of $6900. 5. Sold a long-term investment (cost $3500) for cash of $5500. 6. Acquired an investment in IBM stock for cash of $10500. What is the net cash provided by...
2 yes! 3 4 YES or NO Questions Preferred Stock can take many complicated forms. It might be perpetual or have a fixed maturity, it might be cumulative, redeemable, collateralized or secured in other ways. Under certain circumstances is it possible that US GAAP will force us to record Preferred Stock as a LIABILITY rather than as EQUITY in the balance sheet? In general, should it be true that Earnings cannot be generated from Equity Transactions? An equity investor in...
Uw How Calculator Print item Issuing Stock for Assets Other Than Cash On November 23, Elder Lift Corporation, a wholesaler of hydraulic lifts, acquired land in exchange for 20,000 shares of $10 par common stock with a current market price of $18. Journalize the entry to record the transaction. If an amount box does not require an entry, leave it blank. Nov. 23 Land Common Stock Pald-In Capital in Excess of Par-Common Stock r e the Recall the fair value...
Astro Corporation recently organized. The company issued common stock to an inventor in exchange for a patent with a market value of $55,000. In addition, Astro received cash for 5,000 shares of its $15 par preferred stock at par value and 6,500 shares of its no-par common stock at $50 per share. Without making journal entries, determine the total paid-in capital created by these transactions. The total paid-in capital created by these transactions amounts to $ L .
Mobile Video Systems sold land, investments, and issued their own common stock for $11 million, $16 million and $21 million respectively. Mobile Video also purchased treasury stock, equipment, and a patent for $2 million $2 million, and $5 million respectively a. What amount should the company report as net cash flows from investing activities? (Negative value should be indicated by minus sign. Enter your answer in millions.) Net cash flow from investing activities b. What amount should the company report...
Axle Corporation recently organized. The company issued common stock to an inventor in exchange for a patent with a market value of $59,000. In addition, Axle received cash for 7,000 shares of its $20 par preferred stock at par value and 7,500 shares of its no-par common stock at $45 per share. Without making journal entries, determine the total paid-in capital created by these transactions. The total paid-in capital created by these transactions amounts to $ Rates Corp. issued 1,000...
Bramble's Vegetable Market had the following transactions during 2017: 1. Issued $45000 of par value common stock for cash. 2. Repaid a 6 year note payable in the amount of $17000. 3. Acquired land by issuing common stock of par value $45000. 4. Declared and paid a cash dividend of $7100. 5. Sold a long-term investment (cost $3000) for cash of $5500. 6. Acquired an investment in IBM stock for cash of $9700. What is the net cash provided by...
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