On February 2, 2016, the Farmer Corporation issued 9,000 shares of no-par stock for $17 per...
On February 2, 2016, the Farmer Corporation issued 9,000 shares of no-par stock for $17 per share. Within two hours of the issue, the stock's price jumped on the New York Stock Exchange to $21 per share. Which of the following answers describes the effect of the February 2, 2016 transaction? Assets = Liab. + Com. Stk. Rev. - Exp. = Net Inc Cash A. 153,000 = NA + 153,000 NA - NA = NA 153,000 FA B. 189,000 = NA + 189,000 NA - NA = NA 189,000 IA C. 153,000 = NA + 153,000 NA - NA = NA 153,000 IA D. 189,000 = NA + 189,000 NA - NA = NA 189,000 FA
Homework Answers
|
Option A is the answer Assets and stockholders equity increase by 153,000 (9,000*17) The issue of common stock for cash is a financial activities in flow. Hence option A is the answer |
|
Add Answer to:
On February 2, 2016, the Farmer Corporation issued 9,000 shares of no-par stock for $17 per...
Beacon Corporation issued a 5 percent stock dividend on 30,000 shares of its $8 par common...
Beacon Corporation issued a 5 percent stock dividend on 30,000 shares of its $8 par common stock. At the time of the dividend, the market value of the stock was $24 per share. Required a. Compute the amount of the stock dividend. b. Show the effects of the stock dividend on the financial statements using a horizontal statements model. (In the Statement of Cash Flows column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing...
On January 2, 2016, Alpha Corporation issued 5,000 shares of $2 par value common stock. The...
On January 2, 2016, Alpha Corporation issued 5,000 shares of $2 par value common stock. The issue price was $7.50 per share. Use this information to prepare the General Journal entry (without explanation) for the January 2 entry.
On January 2, 2016, Alpha Corporation issued 2,500 shares of $4 par value common stock. The...
On January 2, 2016, Alpha Corporation issued 2,500 shares of $4 par value common stock. The issue price was S15 per share. On January 15, Alpha Corporation issued 1,000 shares of its S100 par 5% cumulative preferred stock for S107 per share. Use this information to prepare the General Journal entry (without explanation) for the January 2 and January 15 entries. Format General Journal: Debit Credit Date Accounts
On February 1, 2021, the Xilon Corporation issued 59,000 shares of its no-par common stock in...
On February 1, 2021, the Xilon Corporation issued 59,000 shares of its no-par common stock in exchange for five acres of land located in the city of Monrovia. On the date of the acquisition, Xilon's common stock had a fair value of $16 per share. An office building was constructed on the site by an independent contractor. The building was completed on November 2, 2021, at a cost of $8,000,000. Xilon paid $5,000,000 in cash and the remainder was paid...
On February 1, Westwood Corporation issued 5,000 shares of its $20 par value preferred stock for...
On February 1, Westwood Corporation issued 5,000 shares of its $20 par value preferred stock for $26 per share. Journalize the transaction. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Feb. 1 (Issued 5,000 shares at $26 per share)
Question 7 (6 points) On January 2, 2016, Alpha Corporation issued 2,500 shares of $5 par...
Question 7 (6 points) On January 2, 2016, Alpha Corporation issued 2,500 shares of $5 par value common stock. The issue price was $15 per share. On January 15, Alpha Corporation issued 1,000 shares of its $100 par 5% cumulative preferred stock for $105 per share. Use this information to prepare the General Journal entry (without explanation) for the January 2 and January 15 entries. B Format General Journal: Debit Credit Date Accounts </> Question 8 (6 points) On January...
Beacon Corporation issued a 4 percent stock dividend on 30,500 shares of its $9 par common...
Beacon Corporation issued a 4 percent stock dividend on 30,500 shares of its $9 par common stock. At the time of the dividend, the market value of the stock was $24 per share. Required a. Compute the amount of the stock dividend. Stock dividend b. Show the effects of the stock dividend on the financial statements using a horizontal statements model. In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing...
Beacon Corporation issued a 4 percent stock dividend on 30,500 shares of its $9 par common...
Beacon Corporation issued a 4 percent stock dividend on 30,500 shares of its $9 par common stock. At the time of the dividend, the market value of the stock was $24 per share. Required a. Compute the amount of the stock dividend. Stock dividend b. Show the effects of the stock dividend on the financial statements using a horizontal statements model. In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing...
Exercise 2-2B Tpes of transactions and the horizontal financial statements model Pet Partners experienced the following...
Exercise 2-2B Tpes of transactions and the horizontal financial statements model Pet Partners experienced the following events during its first year of operations, Year 1: 1. Acquired cash by issuing common stock LO 2-1 2. Borrowed cash from a bank. 3 Signed a contract to provide services in the future. Purchased land with cash. 4. Paid cash for operating expenses 6. Paid a cash dividend to the stockholders 7. Determined that the market value of the land is higher than...
On January 2, 2016, Alpha Corporation issued 15,000 shares of $10 par value common stock for...
On January 2, 2016, Alpha Corporation issued 15,000 shares of $10 par value common stock for $15 per share. On March 1, 2016, Alpha reacquired 1,000 of these shares when they were trading $20 each. September 1, 2016, when the market was soaring, Alpha reissued 500 shares of treasury stock at the going market rate of $22 per share. Use this information to prepare the General Journal entry (without explanation) for September 1. 0 of ▼ Bly Format General Journal:...
On January 2, 2016, Alpha Corporation issued 2,500 shares of $4 par value common stock. The issue price was S15 per share. On January 15, Alpha Corporation issued 1,000 shares of its S100 par 5% cumulative preferred stock for S107 per share. Use this information to prepare the General Journal entry (without explanation) for the January 2 and January 15 entries. Format General Journal: Debit Credit Date Accounts
On February 1, 2021, the Xilon Corporation issued 59,000 shares of its no-par common stock in exchange for five acres of land located in the city of Monrovia. On the date of the acquisition, Xilon's common stock had a fair value of $16 per share. An office building was constructed on the site by an independent contractor. The building was completed on November 2, 2021, at a cost of $8,000,000. Xilon paid $5,000,000 in cash and the remainder was paid...
On February 1, Westwood Corporation issued 5,000 shares of its $20 par value preferred stock for $26 per share. Journalize the transaction. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Feb. 1 (Issued 5,000 shares at $26 per share)
Question 7 (6 points) On January 2, 2016, Alpha Corporation issued 2,500 shares of $5 par value common stock. The issue price was $15 per share. On January 15, Alpha Corporation issued 1,000 shares of its $100 par 5% cumulative preferred stock for $105 per share. Use this information to prepare the General Journal entry (without explanation) for the January 2 and January 15 entries. B Format General Journal: Debit Credit Date Accounts </> Question 8 (6 points) On January...
Beacon Corporation issued a 4 percent stock dividend on 30,500 shares of its $9 par common stock. At the time of the dividend, the market value of the stock was $24 per share. Required a. Compute the amount of the stock dividend. Stock dividend b. Show the effects of the stock dividend on the financial statements using a horizontal statements model. In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing...
Beacon Corporation issued a 4 percent stock dividend on 30,500 shares of its $9 par common stock. At the time of the dividend, the market value of the stock was $24 per share. Required a. Compute the amount of the stock dividend. Stock dividend b. Show the effects of the stock dividend on the financial statements using a horizontal statements model. In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing...
Exercise 2-2B Tpes of transactions and the horizontal financial statements model Pet Partners experienced the following events during its first year of operations, Year 1: 1. Acquired cash by issuing common stock LO 2-1 2. Borrowed cash from a bank. 3 Signed a contract to provide services in the future. Purchased land with cash. 4. Paid cash for operating expenses 6. Paid a cash dividend to the stockholders 7. Determined that the market value of the land is higher than...
On January 2, 2016, Alpha Corporation issued 15,000 shares of $10 par value common stock for $15 per share. On March 1, 2016, Alpha reacquired 1,000 of these shares when they were trading $20 each. September 1, 2016, when the market was soaring, Alpha reissued 500 shares of treasury stock at the going market rate of $22 per share. Use this information to prepare the General Journal entry (without explanation) for September 1. 0 of ▼ Bly Format General Journal:...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 11 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 11 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 11 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 11 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 11 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 11 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 11 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 11 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 11 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 11 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 11 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 11 months ago