Supper Company Ltd., reported the following stockholders’ equity on its balance sheet at June 30, 2012:

Supper Company Ltd.

Stockholders’ Equity

June 30,2012

Paid-in Capital

Preferred stock, 10%,? par, 650,000 shares authorized, 280,000 shares issued $ 1,400,000

Common stock, par value $? per share, 5,000,000 shares authorized,

1,000,000 shares issued and outstanding

2,000,000

Paid-in capital in excess of par—common 6,000,000

Total paid-in capital 9,400,000

Retained earnings 12,300,000

Total Stockholders’ equity $21,700,000

Requirements:

1. What is the par value per share of Supper’s preferred stock? (Show Workings)

2. What is the par value per share of Supper’s common stock? (Show Workings)

3. What is the selling per share for the $6,000,000 reported as paid-in capital in excess of par –

common? (Show Workings)

4. Prepare two (2) summary journal entries to record issuance of all the Supper Company Ltd stock for

cash. Explanations are not required.

1. Par Value of Preferred stock;

= Preferred stock value / Shares issued

= 1,400,000/280,000

= $5

2. Par Value of Common Stock

= Common stock value / Shares issued

= 2,000,002/1,000,000

= $2

3. Selling price per share including Paid-In Cap

Paid-in cap is the price of a share that exceeds its par value. Selling price therefore is;

= (Par Value + Paid In cap)/ Number of shares

= (2,000,000 + 6,000,000) / 1,000,000

= $8 per share

4.

DR Cash                                                         $1,400,000

     CR Preferred Stock                                                            $1,400,000

DR Cash                                                                $8,000,000

      CR Common Stock                                                                $2,000,000    

            Paid-In Capital in excess of par - Common Stock       $6,000,000

answer; encouraging the development of innovations by firms attempting to break a monopoly; (creative destruction)

the correct answer is:

it required the president to inform congress within forty-eight hours of any new troop commitment.

the war powers resolution (1973) is a federal law designed to limit the u.s. president’s ability to initiate or intensify military actions abroad without the approval of the congress.

it establishes that the president can send armed forces into action abroad only by declaration of war by congress, statutory authorization, or in case of a national emergency created by attack upon the united states, its territories or possessions, or its armed forces.

it requires the president to notify congress within 48 hours of sending armed forces to military action.