Question

Cheetah Corporation’s charter authorized issuance of 500,000 shares of
$1 par value common stock and 250,000 shares of $100 preferred stock. The following transactions involving the issuance of
shares of stock were completed. Each transaction is independent of the others.
1. Issued a $100,000 8% bond payable at par and gave as a bonus ten shares of preferred stock, which at that time was selling
for $102 a share.
2. Issued 7,500 shares of common stock for land. The land had been appraised at $91,100; the seller’s book value was $54,600.
The most recent market price of the common stock is $12 a share.
3. Issued 5,000 shares of common and 50 shares of preferred for a lump sum amounting to $68,800. The common had been
selling at $13 and the preferred at $110.
4. Issued 800 shares of common and 50 shares of preferred for equipment. The common had a fair value of $21 per share; the
equipment has a fair value of $21,900. 1 a. What are the total proceeds allocated to the bond?    b. what are the total proceeds allocated to the preferred stock 2 as. What amount is the debit to Land?     b. What is the credit to Paid-in capital in excess of par-common stock? 3. a. What are the total proceeds allocated to the preferred stock?    b. What are the total proceeds allocated to the common stock? 4. a. What is the debit to the Equipment?    b. What are the total proceeds allocated to the preferred stock?     c. What are the total proceeds allocated to the common stock?

Answer 1