PROBLEM 1 Use the following information to answer the question(s...

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Use the following information to answer the question(s) below. When Rosemary Corporation was formed on January 1, 20x1, the corporate charter provided for 50,000 shares of $20 par value common stock. The following transactions were among those engaged in by the corporation during its first month of operation:

1. The corporation issued 200 shares of stock to its lawyer in full payment of the $5,000 bill for assisting the company in drawing up its articles of incorporation and filing the proper papers with the state agency.
2. The company issued 8,000 shares of stock at a price of $25 per share.
3. The company issued 7,000 shares of stock in exchange for equipment that had a fair market value of $160,000. Required: Prepare the appropriate journal entries for the above transactions.


Pawel Corporation purchases 400 shares of its $50 par value common stock at $55 per share. It then reissues 60 shares at $58 per share. Required: Prepare the journal entries to record the purchase and the issuance of the shares.

Precious Corporation had 5,000 shares of $100 par value, 9 percent cumulative preferred stock and 30,000 shares of $10 par value common stock outstanding during each of its first four years of operation. The following amounts of cash dividends were paid during the years indicated: 20x1, $0; 20x2, $80,000; 20x3, $220,000; 20x4, $270,000. Determine the cash dividends per share paid to the preferred and common stockholders during each of the four years.

Ashaki Corporation had both the following transactions occur on the same day:
1. Issued 30,000 shares of its $5 par value common stock for $360,000 cash.
2. Issued 10,000 shares of its $5 par value common stock in exchange for land and a building. The building is estimated to have a market value of $90,000. Prepare the entries in journal form to record the above transactions. Show computations

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