6. When collectability is reasonably assured, the excess of thesubscription price over the stated value of no-par common stocksubscribed should be recorded as. Please explain
A.
Additional paid-in capital when the subscription isrecorded.
B.
Additional paid-in capital when the common stock is issued.
C.
No-par common stock.
D.
Additional paid-in capital when the subscription iscollected.
6. When collectability is reasonably assured, the excess of thesubscription price over the stated value of no-par common stocksubscribed should be recorded as. Please explain
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Related questions
1. A company purchases 1,000 shares of its $10 par value common stock when the market price per share is $25. The entry to record the treasury stock purchase is:
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2. Tri-City Corporation reports on its balance sheet 1,000 shares of $100 par value, 5%, cumulative, preferred stock; 6,000 shares issued, 5,000 outstanding, of $10 par value common stock; Additional Paid-in Capital, Common of $40,000; 1,000 shares of Treasury Stock, Common at $10,000; and Retained Earnings of $80,000. The preferred shares are callable at $110, and no dividends are in arrears.
The book value per share of Tri-City's common stock is
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3.Johanna Corporation issues 1,000 shares of $20 par value stock for $50,000. The entry to record the stock issue is:
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The stockholders' equity section of the balance sheet forShawnee Corporation appeared as follows before its recent stockdividend:
Common stock, $5 par, 10,000 shares issued and outstanding | $ 50,000 |
Additional paid-in capital - common | 60,000 |
Retained earnings | 75,000 |
Total stockholders' equity | $185,000 |
Shawnee declared a 10% stock dividend when the market price pershare was $10. After the stock dividend was distributed, thecomponents of the stockholders' equity section were:
Common Stock | Add'l. Paid-in Capital | Retained Earnings |
a. |
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b. |
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c. |
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d. | There would be no change in the components of stockholders'equity. |