Question -
Q1. Luis Corporation issued 1,000 shares of stock
Prepare the entry for the issuance under the following assumptions:
(a) The stock had a par value of $5 per share and was issued for a total of $48,000.
(b) The stock had a stated value of $5 per share and was issued for a total of $48,000.
(c) The stock had no par or stated value and was issued for a total of $48,000.
(d) The stock had a par value of $5 per share and was issued to attorneys for services during incorporation valued at $48,000.
(e) The stock had a par value of $5 per share and was issue for land worth $48,000.
Q2. Robydek Corporation issued 100,000 shares of $20 par value, cumulative, 9% preffered stock on January 1, 2012, for $2,080,000. In December 2014, Robydek declared its first dividend of $550,000.
(a) Prepare Robydek's journal entry to record the issuance of the preferred stock.
(b) If the prefferd stock is not cumulative, how much of the $550,000 would be paid to common stockholders?
(c) If the preferred stock is cumulative, how much of the $550,000 would be paid to common stockholders?
Attachment:- Template.rar