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P15-4 (Stock Transactions—Lump Sum) Seles Corporation’s charter
authorized issuance of 100,000 shares of $10 par value common stock
and 50,000 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 $10,000, 9% 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 500 shares of common stock for equipment. The equipment
had been appraised at $7,100; the seller’s book value was $6,200. The
most recent market price of the common stock is $16 a share.
3. Issued 375 shares of common and 100 shares of preferred for a
lump sum amounting to $10,800. The common had been selling at $14
and the preferred at $65.
4. Issued 200 shares of common and 50 shares of preferred for
equipment. The common had a fair value of $16 per share; the
equipment has a fair value of $6,500.
Instructions Record the transactions listed above in journal entry
form.