Yellowstone Inc. issued 300 shares of $5 par Common Stock and 200 shares of $50 par Preferred Stock for a lump sum of $75,000. The fair value of the common stock is $155 per share. The fair value of preferred stock is unknown. The journal entry to record the stock issuance includes a:
Read DetailsUSE THE FOLLOWING FACT SET TO ANSWER THE NEXT 3 QUESTIONS: Whistler Inc. has outstanding 12,600 shares of $10 par value common stock. On July 1, 2025, Whistler reacquired 108 shares at $86 per share. On September 1, Whistler reissued 61 shares at $92 per share. On November 1, Whistler reissued 47 shares at $82 per share. Prepare Whistler’s journal entries for each event using the cost method. QUESTION –> The Journal Entry on July 1st will include a:
Read DetailsOn October 1, 2025, Shenandoah issued 10%, 10-year bonds with a face value of $800,000 for $708,241, an effective yield of 12%. Interest is paid on April 1 and October 1, with any premiums or discounts amortized using the effective interest method. The bond issuance is recorded correctly on October 1, 2025. Shenandoah’s fiscal year end is December 31st. On December 31, 2025, the Journal Entry to record interest would include a:
Read DetailsUSE THE FOLLOWING FACT SET TO ANSWER THE NEXT 3 QUESTIONS: ***Now change the above scenario from a 5% stock dividend to a 100% stock dividend*** Big Sky Corporation has outstanding 470,000 shares of $10 par value common stock. The corporation declares a 100% stock dividend when the fair value of the stock is $59 per share. QUESTION –> The Journal Entry on the date of declaration will include a:
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