Question1 If Waterway Company issues 10300 shares of $5 par value common stock for $160200, the...

Question

Question

business accounting

Answer 1

Answer #1

1) Journal entry :

Date	accounts & explanation	debit	credit
	Cash	160200
	Common Stock		51500
	Paid in capital in excess of par value		108700

So answer is c) Common Stock will be credited for $51500

2) Price earning ratio = MPS/EPS

EPS = 168000/56000 = 3

Price earning ratio = 24/3 = 8 Times

So answer is a) 8.0 Times

3) Current ratio = 160000/100000 = 1.6

So answer is c) 1.6:1

Answer 2

Similar Homework Help Questions

If Sheffield Company issues 5300 shares of $5 par value common stock for $189000. Cash will...

If Sheffield Company issues 5300 shares of $5 par value common stock for $189000. Cash will be debited for $162500. Paid-In Capital in Excess of Par will be credited for $162500. Common Stock will be credited for $189000. Paid-In Capital in Excess of Par will be credited for $26500.
Question 6 If Bramble Corp. issues 11000 shares of $5 par value common stock for $205000,...

Question 6 If Bramble Corp. issues 11000 shares of $5 par value common stock for $205000, the account O Cash will be debited for $150000. O Common Stock will be credited for $55000. O Paid-in Capital in Excess of Par Value will be credited for $55000. O Paid-in Capital in Excess of Par Value will be credited for $205000
If Pina Colada Corp. issues 9500 shares of $5 par value common stock for $217500, the...

If Pina Colada Corp. issues 9500 shares of $5 par value common stock for $217500, the account A- Cash will be debited for $170000. B- Common Stock will be credited for $217500. C- Paid-in Capital in Excess of Par Value will be credited for $170000. D- Paid-in Capital in Excess of Par Value will be credited for $47500.

d. $16,667 9. If Vickers Company issues 4,000 shares of $5 par value common stock for...

d. $16,667 9. If Vickers Company issues 4,000 shares of $5 par value common stock for $140,000 a. Common Stock will be credited for $140,000. b. Paid-in Capital in Excess of Par will be credited for $20,000. c. Paid-In Capital in Excess of Par will be credited for $120,000. d. Cash will be debited for $120,000 in navment of
If Vaughn Manufacturing issues 11500 shares of $10 par value common stock for $415000, the account...

If Vaughn Manufacturing issues 11500 shares of $10 par value common stock for $415000, the account Paid-in Capital in Excess of Par Value will be credited for $415000. Cash will be debited for $300000. Common Stock will be credited for $115000. Paid-in Capital in Excess of Par Value will be credited for $115000. 8-4
if Mary Gold Corp. issues 4000 shares of $10 par value common stock for $36000 the...

if Mary Gold Corp. issues 4000 shares of $10 par value common stock for $36000 the account Question 18 View Policies Current Attempt in Progress If Marigold Corp. issues 4000 shares of $10 par value common stock for $360000, the account Cash will be debited for $320000. Common Stock will be credited for $360000. Paid-in Capital in Excess of Par Value will be credited for $40000. Paid-in Capital in Excess of Par Value will be credited for $320000. e Textbook...

Exercise 15-05 Waterway Inc. issues 500 shares of $10 par value common stock and 100 shares...

Exercise 15-05 Waterway Inc. issues 500 shares of $10 par value common stock and 100 shares of $100 par value preferred stock for a lump sum of $114,000. (a) Prepare the journal entry for the issuance when the market price of the common shares is $176 each and market price of the preferred is $220 each. (b) Prepare the journal entry for the issuance when only the market price of the common stock is known and it is $198 per...
If Dakota Company issues 1,000 shares of $7 par common stock for $18,000, a.Paid-In Capital in...

If Dakota Company issues 1,000 shares of $7 par common stock for $18,000, a.Paid-In Capital in Excess of Par will be credited for $11,000. b.Paid-In Capital in Excess of Par will be credited for $7,000. c.Common Stock will be credited for $18,000. d.Cash will be debited for $7,000.
Question 9 3 pts 1,000 shares of common stock with a par value of $5 is...

Question 9 3 pts 1,000 shares of common stock with a par value of $5 is sold for $8. Which of the following is correct: A. Cash is debited for $5,000 B. Common Stock is debited for $5,000 C. Paid in Capital in Excess of Paris credited for $3,000 D. Common Stock is credited for $8,000 Clied for 90

If a corporation issues 6,000 shares of $5 par value common stock for $90,000, the journal...

If a corporation issues 6,000 shares of $5 par value common stock for $90,000, the journal entry would include a credit to: O A. Paid - in Capital in Excess of Par-Common for $90,000 O B. Common Stock for $90,000 OC. Paid - in Capital in Excess of Par—Common for $60,000. OD. Common Stock for $60,000