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:
a. Debit Treasury Stock, Common, $25,000; credit Cash $25,000.
b. Debit Treasury Stock, Common, $10,000; debit Additional Paid-in Capital, Common, $15,000; credit Cash $25,000.
c. Debit Common Stock, $10,000; debit Additional Paid-in Capital, Common, $15,000; credit Cash $25,000.
d. Debit Cash $25,000; credit Treasury Stock, Common, $25,000.
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
a. $34.00 per share.
b. $26.67 per share.
c. $28.33 per share.
d. $32.00 per share.
3.Johanna Corporation issues 1,000 shares of $20 par value stock for $50,000. The entry to record the stock issue is:
a. Debit Cash, $50,000; Credit Common Stock $50,000.
b. Debit Common Stock, $20,000; debit Additional Paid-in Capital, Common, $30,000; credit Cash, $50,000.
c. Debit Cash, $50,000; credit Common Stock, $20,000; credit Additional Paid-in Capital, Common, $30,000.
d. Debit Common Stock, $50,000; credit Cash, $50,000.
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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Related questions
On January 2, 2015, ABC Co. was authorized to issue 300,000shares of common stock, par value $10 per share and 50,000 sharesof 6% Preferred stock, par value $100 per share. Record thefollowing events for 2015:
1. Issued 100,000 shares of common stock at $15 per share.
Debit Credit
2. Issued 11,000 shares of preferred stock at $105 pershare.
Debit Credit
3. Reacquired 2,000 shares of common stock at $18 per share.
Debit Credit
4. Reissued 500 shares of treasury stock for $10,000.
Debit Credit
5. Declared the annual cash dividend on the preferred stock anda $1 per share dividend on the
common stock. This will be paid the followingyear.
Debit Credit
| 1. A company issues 1 million shares of common stock with a par value of $0.14 for $16.20 a share. The entry to record this transaction includes a debit to Cash for: |
| A) $140,000 and a credit to Common Stock for $140,000. |
| B) $16,200,000 and a credit to Common Stock for $16,200,000. |
| C) $16,200,000, a credit to Common Stock for $140,000, and a credit to Additional Paid-in Capital for $16,060,000. |
| D) $140,000, a debit to Capital Receivable for $16,060,000, a credit to Common Stock for $140,000, and a credit to Additional Paid-in Capital for $16,060,000.
A) Cash and credit Additional Paid-in Capital for $16.00 million. B) Common Stock and credit Additional Paid-in Capital for $16.00 million. C) Common Stock and credit Cash for $16.00 million. D) Cash and credit Common Stock for $16.00 million.
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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.
