Non-Current Operation Assets, assignment help

This needs to be 2-3 pages of original work. Assignment is below:

You will provide the journal entry to record issuing of common stock shares by a corporation, record issuing of cumulative preferred stock, and record a declaration of stock split.

Company A

During 2013, Company A has the following transactions involving its common and preferred stock:

  • Issued 20,000 shares of $8 par common stock for $26 a share; brings total shares outstanding to 50,000 shares
  • Issued 6,000 shares of $100 par, 6%, cumulative preferred stock for $150 per share
  • When market value of the common stock reached $15 a share, Company A declared a 3-for-1 stock split, reducing the par value to $188 per share

The following is required:

  1. Prepare a journal entry for each transaction.
  2. Discuss the right of shareholders of capital stock for company A that they are entitled to.
  3. Company A is formed as a corporation and therefore, its shareholders have limited liability. Limited liability means that stockholders can only lose the amount of their investment. Discuss how this limited liability affects a corporation.
 
"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"

Hi there! Click one of our representatives below and we will get back to you as soon as possible.

Chat with us on WhatsApp