Please help me with the correct answers. I\'ve submitted this question twice wit
ID: 2422692 • Letter: P
Question
Please help me with the correct answers. I've submitted this question twice with wrong answers.
Seles Corporation’s charter authorized issuance of 101,800 shares of $10 par value common stock and 51,500 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 $14,200, 8% bond payable at par and gave as a bonus one share of preferred stock, which at that time was selling for $106 a share.
2. Issued 670 shares of common stock for equipment. The equipment had been appraised at $7,390; the seller’s book value was $6,300. The most recent market price of the common stock is $16 a share.
3. Issued 405 shares of common and 80 shares of preferred for a lump sum amounting to $11,530. The common had been selling at $14 and the preferred at $66
4. Issued 215 shares of common and 48 shares of preferred for equipment. The common had a fair value of $16 per share; the equipment has a fair value of $7,370.
Record the transactions listed above in journal entry form. (Round answers to 0 decimal places, e.g. $38,487. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Explanation / Answer
JOURNAL ENTRIES
PARTICULARS DEBIT CREDIT
1. Cash 14,200
Bond payable 14,200
2. Equipment 7,390
common stock 6,700
Paid in capital in excess of par value 690
3. Cash 11,530
Common stock 4,050
Preffered stock 4,000
Paid-in Capital in Excess of Par Value 3,480
4. Equipment 7,370
Common stock 2,150
Preffered stock 2,400
Paid-in Capital in Excess of Par Value 2,820
Note: Shares are taken at par value.