Mercer Corporation Has 200,000 Shares of $10 Stated Value No-Par

question 73

Essay

Mercer Corporation has 200,000 shares of $10 stated value no-par common stock authorized, and 160,000 shares were outstanding during 2009. The following transactions relate to cash dividends of Mercer Corporation for the year ended December 31, 2009. Prepare entries in journal form without explanations to record the following transactions:

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Definitions:

Maintenance Margin

The minimum account balance that an investor must maintain in a margin account after buying securities on credit, to protect brokers against deficits.

Private Placements

The sale of stocks, bonds, or securities directly to private investors rather than through a public offering in the capital markets.

Primary Security Offerings

The process by which new securities are issued and sold to investors, allowing companies or governments to raise capital.

Institutional Investors

Entities such as banks, insurance companies, and pension funds that invest large sums of money into financial markets.