How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask linda_us Your Own Question
linda_us
linda_us, Master's Degree
Category: Business and Finance Homework
Satisfied Customers: 7291
Experience:  A tutor for Business, Finance, Accounts and other related topics.
19873544
Type Your Business and Finance Homework Question Here...
linda_us is online now
A new question is answered every 9 seconds

Sheldon optics produces medical lasers for use in hospitals.

This answer was rated:

Sheldon optics produces medical lasers for use in hospitals. The accounts and their balances appear in the ledger of Sheldon Optics on October 31 of the current year as follows
Preferred 2% stock, $80 par(50,000 shares authorized, 25000 shares issued $2,000, 000
Paid in capital in excess of par preferred stock 75, 000
common stock, $100 par (500,000 shares authorized, 50,000 shares issued) 5, 000,000
paid in capital in excess of par common stock 600,000
retained earnings 16,750,000
At the annual stockholders meeting on dec 7, the board of directors presented a plan for modernizing and expanding plant operations at a cost of 5,300,000. The plan provided that on
Jan 10: borrowed $2,000,000 from whitefish National Bank, giving a 7% mortgage note
Jan 21: Issued 15,000 shares of preferred stock, receiving $84.50 per share in cash
Jan 31: Issued 17, 500 shares of common stock in exchange for land and a building, building valued at $1,850,000 and land valued at $162,500
Illustrate the effects on the accounts and financial statements of each of the preceding transactions.
Hi JACUSTOMER

Welcome back to JA

Please click here for your solution

If you like my work In future you can request me by writing "FOR LINDA" in front of your post.

Please note that I get credit for my work only when you click accept.

Regards

Linda

Edited by Linda on 10/4/2010 at 6:50 PM EST
linda_us and other Business and Finance Homework Specialists are ready to help you
Customer: replied 6 years ago.
how did you get the paid in capital in excess of par-preferred stock value on Jna 21 and paid in excess -common stock on jan 31
Hi JACUSTOMER

Click here for updated solution

I have included the working.

Please note that I get credit for my work only when you click accept. If you need any other explanation let me know.

Regards

Linda
Are you able to understand the solution now?