Problem-17: Corporations: Organization and Capital Stock Transactions

The stockholders equity section of Haley Corporation at December 31 is as follows.

Instructions

From a review of the stockholders' equity section, as chief accountant, write a memo to the president of the company answering the following questions.

How many shares of common stock are outstanding?
Assuming there is a stated value, what is the stated value of the common stock?
What is the par value of the preferred stock?

Solution

Problems: Corporations: Organization and Capital Stock Transactions

Problem-01: Corporations: Organization and Capital Stock Transactions

DeLong Corporation was organized on January 1, 2020. It is authorized to issue 10,000 shares of 8%, $100 per value preferred stock, and 500,000 shares of no-par common stock with...

Problem-02: Corporations: Organization and Capital Stock Transactions

Fechter Corporation had the following stockholders equity accounts on January 1, 2019: Common Stock ($5 par) $50,000, Paid-in Capital in Excess of Par-Common Stock $200,000, and Retained Earnings $100,000. In...

Problem-03: Corporations: Organization and Capital Stock Transactions

The stockholders equity accounts of Castle Corporation on January 1, 2020, were as follows Preferred Stock (8%, $50 par, 10,000 shares authorized)$400,000 Common Stock ($1 stated value, 2,000,000 shares authorized)1,000,000...

Problem-04: Corporations: Organization and Capital Stock Transactions

Peck Corporation is authorized to issue 20,000 shares of $50 par value, 10% preferred-stock and 125,000 shares of $5 par value common stock. On January 1, 2019, the ledger contained...

Problem-05: Corporations: Organization and Capital Stock Transactions

The following stockholders equity accounts arranged alphabetically are in the ledger of Galindo Corporation at December 31, 2020. Common Stock ($5 stated value)$2,000,000 Paid-in Capital from Treasury Stock10,000 Paid-in Capital...

Problem-06: Corporations: Organization and Capital Stock Transactions

Irwin Corporation has been authorized to isue 20,000 shares of $100 par value, 10% preferred stock and 1,000,000 shares of no-par common stock. The corporation assigned a $2,50 stated value...

Problem-07: Corporations: Organization and Capital Stock Transactions

Andrea has prepared the following list of statements about corporations A corporation is an entity separate and district from its owners. As a legal entity, a corporation has most of...

Problem-08: Corporations: Organization and Capital Stock Transactions

During its first year of operations, Foyle Corporation had the following transactions pertaining to its common stock. Jan. 10Issued 70,000 shares for cash at $5 per share July 1Issued 40,000...

Problem-09: Corporations: Organization and Capital Stock Transactions

Osage Corporation issued 2,000 shares of stock. Instruction The stock had a par value of $5 per share and was issued for a total of $52,000. the stock had a...

Problem-10: Corporations: Organization and Capital Stock Transactions

Quay Co. had the following transactions during the current period. Mar. 2Issued 5,000 shares of $5 par value common stock to attorneys in payment of a bill for $30,000 for...

Problem-11: Corporations: Organization and Capital Stock Transactions

As an auditor for the CPA firm of Hinkson and Calvert, you encounter the following situations in auditing different clients. LR Corporation is a closely held corporation whose stock is...

Problem-12: Corporations: Organization and Capital Stock Transactions

On January 1, 2021, the stockholders equity section of Newlin Corporation shows common stock ($5 par value) $1,500,000; paid-in capital in excess of par $1,000,000; and retained earnings $1,200,000. During...

Problem-13: Corporations: Organization and Capital Stock Transactions

Rinehart Corporation purchased from its stockholders 5,000 shares of its own previously issued stock for $255,000. It later resold 2,000 shares for $54 per share, then 2,000 more shares for...

Problem-14: Corporations: Organization and Capital Stock Transactions

Tran Corporation is authorized to issue both preferred and common stock. The par value of the preferred is $50. During the first year of operations, the company had the following...

Problem-15: Corporations: Organization and Capital Stock Transactions

Gillian corporation recently hired a new accountant with extensive experience in accounting for partnerships. Because of the pressure of the new job, the accountant was unable to review his textbooks...

Problem-16: Corporations: Organization and Capital Stock Transactions

The following stockholders equity accounts, arranged alphabetically, are in the ledger of Eudaley Corporation at December 31, 2020. Common Stock ($5 stated Value)$1,500,000 Paid-in Capital in Excess of Par-Preferred Stock280,000...

Problem-17: Corporations: Organization and Capital Stock Transactions

The stockholders equity section of Haley Corporation at December 31 is as follows. Instructions From a review of the stockholders' equity section, as chief accountant, write a memo to the...

Problem-18: Corporations: Organization and Capital Stock Transactions

The stockholders equity section of Aluminum Company of America (Alcoa) showed the following ( in alphabetical order): additional paid-in capital $6,101, common stock $925, preferred stock $56, retained earnings $7,428,...

Problem-19: Corporations: Organization and Capital Stock Transactions

The ledger of Rolling Hills Corporation contains the following accounts: Common Stock, Preferred Stock, Treasury stock, Paid-in Capital in Excess of Par-Preferred Stock, Paid-in Capital in Excess of Stated Value-Common...

Corporations: Organization and Capital Stock Transactions