Asked by Stone Jamison on Apr 26, 2024
Verified
Prepare entries to record the following transactions for Maine Corp.:
(a)Issued 2,000 shares of $10 par common stock at $72 for cash.
(b)Issued 2,500 shares of common stock in exchange for land with a fair market price of $130,000.
(c)Purchased 400 shares of treasury stock at $70.
(d)Sold the 400 shares of treasury stock purchased in
(c) at $76.
Par Common Stock
The nominal or face value of a share of common stock, as stated in the corporate charter.
Fair Market
The price at which a willing buyer and seller would agree to transact in an open and unrestricted market.
- Examine the effects of stock dealings, such as the issuance of shares and treasury stock activities, on the financial reports of a corporation.
- Ready oneself for the documentation and comprehension of dealings linked to the reacquisition and offloading of treasury shares.
Verified Answer
JK
Learning Objectives
- Examine the effects of stock dealings, such as the issuance of shares and treasury stock activities, on the financial reports of a corporation.
- Ready oneself for the documentation and comprehension of dealings linked to the reacquisition and offloading of treasury shares.
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