Question

In: Accounting

Lanier Tech This company was incorporated as a new business on January 1, 2019. The company...

Lanier Tech This company was incorporated as a new business on January 1, 2019. The company is authorized to issue 50,000 shares of $5 par common stock and 10,000 shares of 6%, $10 par, cumulative, participating preferred stock. On January 1, 2019, the company issued 8,000 shares of the common stock for $15 per share and 2,000 share of the preferred stock for $30 per share. Net income for the year ended December 31, 2019 was $375,000. Refer to Lanier Tech. What is the number of the company’s unissued shares of common stock at December 31, 2019? a. 42,000 b. 6,000 c. 40,000 d. 8,000

Solutions

Expert Solution

Answer:a. 42,000

Number of unissued shares of common stock = Authorized shares - issued shares

                                                                   = 50000 - 8000

                                                                   = 42000

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

Stockholders' Equity Category Peeler Company was incorporated as a new business on January 1, 2017. The...
Stockholders' Equity Category Peeler Company was incorporated as a new business on January 1, 2017. The corporate charter approved on that date authorized the issuance of 1,000 shares of $100 par, 7% cumulative, nonparticipating preferred stock and 10,000 shares of $5 par common stock. On January 10, Peeler issued for cash 500 shares of preferred stock at $120 per share and 4,000 shares of common stock at $80 per share. On January 20, it issued 1,000 shares of common stock...
Peeler Company was incorporated as a new business on January 1, 2017. The corporate charter approved...
Peeler Company was incorporated as a new business on January 1, 2017. The corporate charter approved on that date authorized the issuance of 1,100 shares of $100 par, 7% cumulative, nonparticipating preferred stock and 12,000 shares of $5 par common stock. On January 10, Peeler issued for cash 430 shares of preferred stock at $120 per share and 4,000 shares of common stock at $81 per share. On January 20, it issued 1,500 shares of common stock to acquire a...
On 1 January 2019, Umi Bhd, a company incorporated in Malaysia, acquired 80% interest in Adeq...
On 1 January 2019, Umi Bhd, a company incorporated in Malaysia, acquired 80% interest in Adeq Ltd, a company incorporated in Singapore whose functional and presentation currencies are Singapore Dollar (S$). At this date, Adeq Ltd’s net assets were represented by share capital of S$3,000,000; revaluation reserve of S$1,000,000, and retained profit of S$1,000,000. The functional and presentation currencies of Umi Bhd are Ringgit Malaysia (RM). Required: a) Advise the directors of UMI Bhd of how they should consolidate and...
A. A company acquired a new high-tech printing press on January 1, 2016, for $90,000. At...
A. A company acquired a new high-tech printing press on January 1, 2016, for $90,000. At that time, the company estimated the press would have a six-year life and salvage value of $6,000. The company uses the straight-line depreciation method for all its equipment. In December 2017, a newer high-tech printing press is introduced in the market. The company controller is concerned that the value of the press may be impaired. The controller has provided you with the following data...
On 1 January 20X7, Change Incorporated commenced business operations. At 31
On 1 January 20X7, Change Incorporated commenced business operations. At 31 December 20X9, the following information relates to Chang: 20X7 20X8 20X9 Earnings (loss) before tax $ 334,900 $ (486,100 ) $ 785,000 Tax rate (enacted in each year) 30 % 35 % 40 % Depreciation expense (asset cost was $730,000) 63,000 63,000 63,000 Capital cost allowance 219,000 0 91,000 Dividends received (nontaxable) 41,000 66,500 66,500 Golf club dues 10,900 10,900 10,900 Required:1. Prepare journal entries to record tax for...
Gundagai Ltd was incorporated on June 30, 2019. On July 1, 2019, the company issued a...
Gundagai Ltd was incorporated on June 30, 2019. On July 1, 2019, the company issued a prospectus offering 300,000 ordinary shares at an issue price of $10, payable on the following terms. $3 on application $3 on allotment $2 on the first call $2 on the second call A summary of the applications and allotments register follows. Amount paid per share on application Number of shares applied for Number of shares allotted $3.00 200,000 150,000 $6.00 100,000 100,000 $10.00 50,000...
Gundagai Ltd was incorporated on June 30, 2019. On July 1, 2019, the company issued a...
Gundagai Ltd was incorporated on June 30, 2019. On July 1, 2019, the company issued a prospectus offering 300,000 ordinary shares at an issue price of $10, payable on the following terms. $3 on application $3 on allotment $2 on the first call $2 on the second call A summary of the applications and allotments register follows. Amount paid per share on application Number of shares applied for Number of shares allotted $3.00 200,000 150,000 $6.00 100,000 100,000 $10.00 50,000...
1. On January 1, 2019, ABC Company purchased a new piece of equipment. The equipment was...
1. On January 1, 2019, ABC Company purchased a new piece of equipment. The equipment was assigned a $7,000 residual value and is expected to produce a total of 60,000 units over its life. The depreciation expense reported on the equipment for 2019 was $10,734. During 2020, the equipment was used to produce 9,000 units. At December 31, 2020, the book value of the equipment was $57,466. ABC Company is using the units-of-production depreciation method to depreciate the equipment. Calculate...
Permabilt Corp. was incorporated on January 1, 2019, and issued the following stock for cash: 2,000,000...
Permabilt Corp. was incorporated on January 1, 2019, and issued the following stock for cash: 2,000,000 shares of no-par common stock were authorized; 750,000 shares were issued on January 1, 2019, at $35 per share. 800,000 shares of $100 par value, 7.5% cumulative, preferred stock were authorized; 540,000 shares were issued on January 1, 2019, at $105 per share. No dividends were declared or paid during 2019 or 2020. However, on December 22, 2021, the board of directors of Permabilt...
Homestead Oil Corp. was incorporated on January 1, 2019, and issued the following stock for cash:...
Homestead Oil Corp. was incorporated on January 1, 2019, and issued the following stock for cash: 850,000 shares of no-par common stock were authorized; 140,000 shares were issued on January 1, 2019, at $18.00 per share. 250,000 shares of $110 par value, 7.50% cumulative, preferred stock were authorized; 61,000 shares were issued on January 1, 2019, at $150 per share. Net income for the years ended December 31, 2019 and 2020 was $1,400,000 and $2,500,000, respectively. No dividends were declared...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT