Assignment 2 - Seles Corporation’s charter authorized issuance

Assignment 2

Seles Corporation’s charter authorized issuance of 100,000 shares of $10 par value  common stock and 50,000 shares of $50 preferred stock. The following transactions  involving the issuance of shares of stock were completed. Each transaction is  independent of the others. Seles Corporation General Journal 

1. Issued a $10,000, 9% bond payable at par and gave as a bonus one share of  preferred stock, which at that time was selling for $106 a share. 

2. Issued 500 shares of common stock for equipment. The equipment had been  appraised at $7,100; the seller’s book value was $6,200. The most recent market  price of the common stock is $16 a share. 

3. Issued 375 shares of common and 100 shares of preferred for a lump sum  amounting to $10,800. The common had been selling at $14 and the preferred at  $65. Seles Corporation General Journal 

4. Issued 200 shares of common and 50 shares of preferred for equipment. The  common had a fair value of $16 per share; the equipment has a fair value of $6,500 

 Record the transactions listed above in journal entry form.