Ranier Company isauthorized to issue 10,000 shares of 8%, $100 par value preferredstock and 500,000 shares of no-par common stock with a stated valueof $1 per share. If Ranier issues 5,000 shares of preferred stockfor land with an asking price of $575,000 and a market value of$550,000, which of the following would be the journal entry forRanier to record?
Land: 500,000
Preferred Stock: 500,000
Land: 550,000
Preferred Stock: 550,000
Land: 575,000
Preferred Stock: 500,000
Paid-in Capital in Excess of Par-Preferred: 75,000
Land: 550,000
Preferred Stock: 500,000
Paid-in Capital Excess of Par-Preferred: 50,000
Ranier Company isauthorized to issue 10,000 shares of 8%, $100 par value preferredstock and 500,000 shares of no-par common stock with a stated valueof $1 per share. If Ranier issues 5,000 shares of preferred stockfor land with an asking price of $575,000 and a market value of$550,000, which of the following would be the journal entry forRanier to record?
Land: 500,000 | ||
Land: 550,000 | ||
Land: 575,000 | ||
Land: 550,000 |
Related questions
1. A company issued 165 shares of $100 par value common stock for $17,500 cash. The total amount of paid-in capital is:
Multiple Choice
$100.
$1,000.
$1,650.
$17,500.
$16,500.
2.
A corporation issued 6,200 shares of $10 par value common stock in exchange for some land with a market value of $94,000. The entry to record this exchange is:
Multiple Choice
Debit Land $94,000; credit Common Stock $62,000; credit Paid-In Capital in Excess of Par Value, Common Stock $32,000.
Debit Land $94,000; credit Common Stock $94,000.
Debit Land $62,000; credit Common Stock $62,000.
Debit Common Stock $62,000; debit Paid-In Capital in Excess of Par Value, Common Stock $32,000; credit Land $94,000.
Debit Common Stock $94,000; credit Land $94,000.
3.
Fargo Company's outstanding stock consists of 600 shares of noncumulative 5% preferred stock with a $10 par value and 3,200 shares of common stock with a $1 par value. During the first three years of operation, the corporation declared and paid the following total cash dividends.
| Dividend Declared | ||
| year 1 | $ | 22,000 |
| year 2 | $ | 5,000 |
| year 3 | $ | 31,000 |
The amount of dividends paid to preferred and common shareholders in year 1 is:
Multiple Choice
$300 preferred; $21,700 common.
$6,000 preferred; $16,000 common.
$19,0000 preferred; $3,000 common.
$11,000 preferred; $11,000 common.
$22,000 preferred; $0 common.
