Answer:
Cash 9500 debit
Discount on BP 103 debit
Bonds payable 9500 credit
Preferred stock 50 credit
Additional paid-in preferred Stock 63 credit
Equipment 7,100 debit
Common Stock 4,800 credit
additional paid-in 2,300 credit
Cash 10,054 debit
Common stok 3,580 credit
Additional piad-in CS 1,074 credit
Preferred Stock 4,500 credit
Additiona paid-in PS 900 credit
Equipment 6,000 debit
Common stok 2,200 credit
Additional piad-in CS 625.32 credit
Preferred Stock 2,550 credit
Additiona paid-in PS 724.68 credit
Explanation:
common stock face value 480 x 10 = 4,800
equipment market value 7,100
additional paid-in 2,300
Common stock issuance
358 x 10 3,580
358 x 13 <u> 4,654</u>
additional paid in CS 1,074
Preferred stock issuance
90 x 50 4,500
90 x 60 <u> 5,400</u>
additional paid-in PS 900
Total cash proceds: 4,654 + 5,400 = 10,054
Second issuance for equipment(#4)
220 x 10 = 2,200 common shares = 2,200 /4,750 = 0.4632
51 x 50 = 2,550 preferred shares = 2,550/4,750 = 0.5368
Total face value of issuesd shares 4,750
Fair value of the equipment 6,000
additional paid in of 1,350
from which:
common stock 1,350 x 0.4632 = 625.32
preferred stock 1,350 x .5368 = 724.68
