If a company issues 10,000 shares of $8 par value common stock at a market price of $120 per share, which of the following is the correct balance sheet entry?
Select one:
A. Increase cash by $1,200,000 and increase paid-in capital by $1,200,000
B. Increase revenues by $1,200,000
C. Increase common stock and cash by $80,000
D. Increase cash by $1,200,000 and increase retained earnings by $1,200,000
Issuance of Common Stock for cash increases cash and paid-in capital |
Increase cash by $1,200,000 and increase paid-in capital by $1,200,000 (10000*120) |
Option A is correct |
If a company issues 10,000 shares of $8 par value common stock at a market price...
If a company issues 1,000 shares of common stock at a market price of $20 per share, which of the following is the correct balance sheet effect? A. Increase cash by $20,000 and increase contributed capital by $20,000 B. Increase cash by $20,000 and increase earned capital by $20,000 C. Increase stock revenues by $20,000 D. Stock issuances are not reported on the balance sheet E. None of the above
1. BonitaCorp. issues 2800 shares of $10 par value common stock
at $15 per share. When the transaction is recorded, credits are
made to
Common Stock $28000 and Retained Earnings $14000.
Common Stock $28000 and Paid-in Capital in Excess of Par
$14000.
2. VaughnCompany is authorized to issue 9000 shares of 7%, $100
par value preferred stock and 532000 shares of no-par common stock
with a stated value of $1 per share. If Vaughn issues 4500 shares
of preferred stock...
Jackson Corporation issues 1000 shares of $2 par value common stock for $10,000. When common stock is issued, which of the following is the correct journal entry? a. Common stock 10,000 Common stock 2,000 Cash 8,000 b. Paid in capital in excess of par 11,000 Cash 10,000 Common stock 1,000 c. Cash 10,000 Common stock 2,000 Paid in capital in excess of par 8,000 d. Cash 8,000 Common Stock 2,...
1. Nexis Corp. issues 1,000 shares of $15 par value common stock at $22 per share. When the transaction is recorded, credits are made to a.Common Stock, $7,000, and Paid-In Capital in Excess of Stated Value, $15,000 b.Common Stock, $15,000, and Paid-In Capital in Excess of Par—Common Stock, $7,000 c.Common Stock, $22,000 2. Sabas Company has 20,000 shares of $100 par, 2% cumulative preferred stock and 100,000 shares of $50 par common stock. The following amounts were distributed as dividends:...
Blue Inc. issues 500 shares of $10 par value common stock and 100 shares of $100 par value preferred stock for a lump sum of $121,000. Prepare the journal entry for the issuance when the market price of the common shares is $164 each and market price of the preferred is $205 each. (b) Prepare the journal entry for the issuance when only the market price of the common stock is known and it is $212 per share. (Round answers...
1)Madrid Corporation has 17,000 shares of $70 par common stock outstanding. On June 8, Madrid Corporation declared a 5% stock dividend to be issued August 12 to stockholders of record on July 13. The market price of the stock was $81 per share on June 8. Journalize the entries required on June 8, July 13, and August 12. For a compound transaction, if an amount box does not require an entry, leave it blank. If no entry is required, select...
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...
Alliance Corp. Issues 1,350 shares of $11 par value common stock at $15 per share. When the transaction is recorded, what credit entry or entries are made? Select the correct answer. Common Stock $20,250. Common Stock $14,850 and Pald-in Capital in Excess of Stated Value $5,400. Common Stock $5,400 and Retained Earnings $14,850. Common Stock $14,850 and Paid-in Capital in excess of Par Value $5,400.
Fronthouse Corp. issues 10,000 shares of no-par value preferred stock for cash at $60 per share. The journal entry to record the transaction will consist of a debit to Cash for $600,000 and a credit (or credits) to: Preferred Stock for $20,000 and Retained Earnings for $580,000. Retained Earnings for $600,000. Preferred Stock for $20,000 and Additional Paid-in Capital for $580,000. Preferred Stock for $600,000.
Calculator Alliance Corp. issues 1,920 shares of $10 par value common stock at $15 per share. When the transaction is recorded, what credit entry or entries are made? Select the correct answer. Ocommon Stock $19,200 and Paid-in Capital in excess of Par Value $9,600. O Common Stock $28,800. O Common Stock $9,600 and Retained Earnings $19,200. Ocommon Stock $19,200 ahd Paid-in Capital in Excess of Stated Value $9,600.