ACC 304 help A Guide to career/Snaptutorial ACC 304 help A Guide to career/Snaptutorial | Page 157

1) Ravonette Corporation issued 375 shares of $14 par value
common stock and 128 shares of $51 par value preferred stock for a
lump sum of $17,118. The common stock has a market price of $20
per share, and the preferred stock has a market price of $90 per
share.
Prepare the journal entry to record the issuance. (Round answers to 0
decimal places, e.g., 1520. 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.)
Account Titles and Explanation
Debit Credit
2) nArantxa Corporation has outstanding 20,110 shares of $5 par
value common stock. On August 1, 2014, Arantxa reacquired 370
shares at $86 per share. On November 1, Arantxa reissued the 370
shares at $78 per share. Arantxa had no previous treasury stock
transactions.
Prepare Arantxa’s journal entries to record these transactions using
the cost method. (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.)
Date Account Titles and Explanation
Debit Credit
3) Cole Inc. owns shares of Marlin Corporation stock classified as
an available-for-sale investment. At December 31, 2014, the
available-for-sale securities were carried in Cole’s accounting
records at their cost of $886,600, which equals their fair value. On
September 21, 2015, when the fair value of the securities was
$1,250,300, Cole declared a property dividend whereby the Marlin
securities are to be distributed on October 23, 2015 to stockholders of
record on October 8, 2015.