Question

URCES Problem 15-4 Your answer is partially correct. Try again. Marigold Corporation's charter authorized issuance of 105,000 shares of $10 par value common stock completed. Each transaction is independent of the others. 1 Issued a $9,200,9% bond payable at par and gave as a bonus one share of preferred stock, which at that time and 4o soo shares of sso preferred stock. The followino transactions involving the issuance of shares of stock were Jbv. Study 2. Issued 460 shares of common stock for equipment. The equipment had been appraised at $7,000; the seller's 3. Issued 343 shares of common and 107 shares of preferred for a lump sum amounting to $11,000. The common was selling for $102 a share. book value was $6,400. The most recent market price of the common stock is $15 a share. had been selling at $13 and the preferred at $69. 4. Issued 190 shares of common and 50 shares of preferred for equipment. The common had a fair value of $15 per share; the equipment has a fair value of $6,100. Record the transactions listed above in journal entry form. (Round Round intermediate calculations to 6 decimal places, e.g. 0.546872 and final answers to 0 decimal places, e.g. $38,487. Credit account titles are automatically indented when amount is entered. Do not indent manualy. If no entry is required, select No Entry" for the account titles and enter o for the amounts.) No. Account Titles and Explanation 1Cash Debit Credit 9,200 Discount on Bonds Payable 102 Paid-in Capital in Excess of Par-Preferred Stock 52

Answer 1

	Account Titles and Explanation	Debit	Credit
1	Cash	$   9,200
	Discount on bonds payable	$       102
	Bonds payable		$   9,200
	Preferred stock		$         50
	Paid - in capital in excess of par - Preferred stock		$         52
2	Equipment (460 X $15)	$   6,900
	Common stock (460 X $10)		$   4,600
	Paid - in capital in excess of par - Common stock		$   2,300
3	Cash	$ 11,000
	Preferred stock (107 X $50)		$   5,350
	Paid - in capital in excess of par - Preferred stock ($6858 - $5350)		$   1,508
	Common stock (343 X $10)		$   3,430
	Paid - in capital in excess of par - Common stock ($4142 - $3430)		$       712
	Workings:
	Total Lump sum amount = $11000
	Fair Value of:
	Common stock (343 X $13)	=	$   4,459
	Preferred stock (107 X $69)	=	$   7,383
	Total	=	$ 11,842
	Lump sum amount allocated to:
	Common stock [($4459/$11842) X $11000]	=	$   4,142
	Preferred stock [($7383/$11842) X $11000]	=	$   6,858
4	Equipment	$   6,100
	Preferred stock (50 X $50)		$   2,500
	Paid - in capital in excess of par - Preferred stock ($3555 - $2500)		$   1,055
	Common stock (190 X $10)		$   1,900
	Paid - in capital in excess of par - Common stock ($2545 - $1900)		$       645
	Workings:
	Total Lump sum amount = $6100
	Fair Value of:
	Common stock (190 X $13)	=	$   2,470
	Preferred stock (50 X $69)	=	$   3,450
	Total	=	$   5,920
	Lump sum amount allocated to:
	Common stock [($2470/$5920) X $6100]	=	$   2,545
	Preferred stock [($3450/$5920) X $6100]	=	$   3,555