Maine Corporation has two classes of stock: Common, 3.00 par; Preferred, $30.00 par. Journalize Maine's issuance of the following:

1. 1,000 shares of common stock for $9.00 per share.

2. 1,000 shares of preferred stock for a total of $30,000.00

Question

Mathematics

Devon Hill

24 April, 07:05

Maine Corporation has two classes of stock: Common, 3.00 par; Preferred, $30.00 par. Journalize Maine's issuance of the following:

1. 1,000 shares of common stock for $9.00 per share.

2. 1,000 shares of preferred stock for a total of $30,000.00

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Answers (1)

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Rich · Answer 1

1) Cost of 1 share = $9.00

No. of shares = 1000

Total cost of shares = $9000

Hence, the shares are issued at a premium of $6.

Profit through premium on 1000 shares = 6*1000 = $6000

2) Total cost of shares = $30,000

Number of shares = 1000

Cost of 1 share = $30.

Hence, the shares are issued at par value with no profit no loss.

Maine Corporation has two classes of stock: Common, 3.00 par; Preferred, $30.00 par. Journalize Maine's issuance of the following:1. 1,000 shares of common stock for $9.00 per share.2. 1,000 shares of preferred stock for a total of $30,000.00

Maine Corporation has two classes of stock: Common, 3.00 par; Preferred, $30.00 par. Journalize Maine's issuance of the following:

1. 1,000 shares of common stock for $9.00 per share.

2. 1,000 shares of preferred stock for a total of $30,000.00