Toronto, Inc. issued 4,000 shares of $100 par preferred stock at $155 a share. Each share of stock has a warrant attached to it that allows the holder to purchase one share of $20 par value common stock at $50. Shortly after the preferred stock was issued, the stock sold for $150 ex-rights, and the warrants sold for $10 each. Required: a. Prepare the journal entry to record the issuance of the preferred stock. b. Prepare the journal entry to record the exercise of 3,200 of the warrants. c. Prepare the journal entry to record the expiration of the remaining 800 warrants.

Toronto, Inc. issued 4,000 shares of $100 par preferred stock at $155 a share. Each share of stock has a warrant attached to it that allows the holder to purchase one share of $20 par value common stock at $50. Shortly after the preferred stock was issued, the stock sold for $150 ex-rights, and the warrants sold for $10 each. Required: a. Prepare the journal entry to record the issuance of the preferred stock. b. Prepare the journal entry to record the exercise of 3,200 of the warrants. c. Prepare the journal entry to record the expiration of the remaining 800 warrants.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 12MC: A corporation issued 100 shares of $100 par value preferred stock for $150 per share. The resulting...

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