Intermediate Accounting

Intermediate Accounting: week 4 Assignment

Student Name: Nidal Charafeddine
Professor: Sheila Woods
Devry University
July-2016

Accounting Intermediate

E15-2
Jan.10

Mar.1

Cash (80,000 X $5)

400,000
Common Stock (80,000 X $1)
80,000
Paid-in Capital in Excess of Stated
ValueCommon Stock
320,000
(80,000 X $4)
Cash (5,000 X $108)
Preferred Stock (5,000 X $100)
Paid-in Capital in Excess of Par
Preferred Stock
(5,000 X $8)

540,000
500,000
40,000

April.1

Land
80,000
Common Stock (24,000 X $1)
24,000
Paid-in Capital in Excess of Stated
ValueCommon Stock
56,000
($80,000 $24,000)

May.1

Cash (80,000 X $7)

560,000
Common Stock (80,000 X $1)
80,000
Paid-in Capital in Excess of Stated
ValueCommon Stock
480,000
(80,000 X $6)

Aug.1

Organization Expense
Common Stock (10,000 X $1)
Paid-in Capital in Excess of Stated
ValueCommon Stock
($50,000 $10,000)

Sept.1

50,000

Cash (10,000 X $9)

90,000
Common Stock (10,000 X $1)
10,000
Paid-in Capital in Excess of Stated
ValueCommon Stock
80,000

10,000
40,000

Accounting Intermediate

(10,000 X $8)

Nov.1

Cash (1,000 X $112)

112,000
Preferred Stock (1,000 X $100)
100,000
Paid-in Capital in Excess of Par
Preferred Stock
12,000
(1,000 X $12)

E 15-5
(a)

Fair Value of Common (500 X $165)

Fair Value of Preferred (100 X $230)

Allocated to Common:
Allocated to Preferred:
Total allocation

$ 82,500
23,000
$105,500

$82,500/$105,500 X $100,000
$23,000/$105,500 X $100,000

Cash

100,000
Common Stock (500 X $10)
Paid-in Capital in Excess of Par
Common Stock ($78,199 $5,000)
Preferred Stock (100 X $100)
Paid-in Capital in Excess of Par
Preferred Stock ($21,801 $10,000)

(b)

Lump-sum receipt
Allocated to common (500 X $170)
Balance allocated to preferred
Cash

5,000
73,199
10,000
11,801

$100,000
85,000
$ 15,000

100,000
Common Stock
Paid-in Capital in Excess of Par
Common Stock ($85,000 $5,000)
Preferred Stock
Paid-in Capital in Excess of Par
Preferred Stock ($15,000 $10,000)

5,000
80,000
10,000
5,000

$ 78,199
21,801
$100,000

Accounting Intermediate

E 15-6
(a)

(b)

Cash [(5,000 X $45) $7,000]

Common Stock (5,000 X $5)
Paid-in Capital in Excess of Par
Common Stock

218,000
25,000
193,000

Land (1,000 X $46)

46,000
Common Stock (1,000 X $5)
5,000
Paid-in Capital in Excess of Par
Common Stock ($46,000 $5,000) 41,000
The market value of the stock ($46,000) is used to value the exchange because it is a more
objective measure than the appraised value of the land ($50,000).

(c)

Treasury Stock (500 X $43)

Cash

21,500
21,500