Glavine Company issues 6,000 shares of its $5 par value ordinary shares having a market value of $25 per share and 9,000 shares of its $15 par value preference shares having a fair value of $20 per share for a lump sum of $288,000.The proceeds allocated to the ordinary shares is

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The proceeds allocated to the ordinary shares is $130,909. This is calculated as follows:Proceeds from the sale of ordinary shares = Market value per share x Number of shares= $25 x 6,000= $150,000Proceeds from the sale of preference shares = Fair value per share x Number of shares= $20 x 9,000= $180,000Total proceeds from the sale of shares = $150,000 + $180,000= $330,000Proceeds allocated to the ordinary shares = Total proceeds from the sale of shares - Proceeds from the sale of preference shares= $330,000 - $180,000= $150,000

Glavine Company Issues 6,000 Shares of Its $5 Par Value