1. Swifty Corporation issued 309 shares of $10 par value common
stock and 141 shares of $50 par value preferred stock for a lump
sum of $18,252. The common stock has a market price of $20 per
share, and the preferred stock has a market price of $100 per
Prepare the journal entry to record the issuance
2. Oriole Corporation issued 530 shares of $100 par value
preferred stock for $64,400.
Prepare Oriole’s journal entry.
3. The common stock of Stellar Inc. is currently selling at $119
per share. The directors wish to reduce the share price and
increase share volume prior to a new issue. The per share par value
is $10; book value is $68 per share. 9.20 million shares are issued
Prepare the necessary journal entries assuming the following.
|(a)||The board votes a 2-for-1 stock split.|
|The board votes a 100% stock dividend.