On January 10, BOC Corporation issued for cash 100,000 shares of $10 par value common stock at $80. On April 20, BOC issued at par 25,000 shares of preferred 4% stock, $25 par at $90. On July 1, BOC issued for cash 10,000 shares of 5%, $15 par preferred stock at $100.
Answer parts a. through c. for the common stock issued on January 10.
How much cash did BOC Corporation receive from the issuance of this stock?
$
What is the total par value of the common stock issued?
$
As the par value per share of the common stock increases, the amount of cash that BOC will receive from the issuance of the stock will – Select your answer -decreaseincreaseremain the sameCorrect 3 of Item 6.
Answer parts a. through c. for the preferred stock issued on April 20.
How much cash did BOC Corporation receive from the issuance of this stock?
$
What is the total par value of this preferred stock?
$
As the issue price per share of the preferred stock increases, the amount of cash that BOC will receive from the issuance of this preferred stock will – Select your answer -decreaseincreaseremain the sameCorrect 6 of Item 6.
Answer parts a. through c. for the preferred stock issued on July 1.
How much cash did BOC Corporation receive from the issuance of this stock?
$
What is the total par value of this preferred stock?
1
A
How much cash did BOC Corporation receive from the issuance of this stock?
$ 8,000,000
(100,000 Shares X $80)
B
What is the total par value of this preferred stock?
$ 1,000,000
(100,000 Shares X $10)
C
As the issue price per share of the preferred stock increases, the amount of cash that BOC will receive from the issuance of this preferred stock will –
Answer: As the par value per share of the common stock increases, the amount of cash that BOC will receive from the issuance of stock will remain same.
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2
A
How much cash did BOC Corporation receive from the issuance of this stock?
2,250,000
(25,000 Shares X $90)
B
What is the total par value of this preferred stock?
$625,000
(25,000 Shares X $25)
C
As the par value per share of the preferred stock increases, the amount of cash that BOC will receive from the issuance of stock will remain same.
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3
How much cash did BOC Corporation receive from the issuance of this stock?
$1,000,000
(10,000 Shares X $100)
What is the total par value of this preferred stock?
$150,000
(10,000 Shares X $15)
