16) A corporation issues 3,450 shares of common stock for $110,400. The stock ha
ID: 2432714 • Letter: 1
Question
16) A corporation issues 3,450 shares of common stock for $110,400. The stock has a stated value of $19 per share. What amount of credit to Common Stock would the journal entry to record the stock issuance include?
Select the correct answer.
a) $44,850
b) $65,550
c) $110,400
d) $3,450
18) Hurd Company acquired a building valued at $162,000 for property tax purposes in exchange for 10,000 shares of its $5 par common stock. The stock is widely traded and sold for $18 per share. At what amount should the building be recorded by Hurd Company?
Select the correct answer.
a) $162,000
b) $130,000
c) $50,000
d) $180,000
19) If Larger Company issues 2,100 shares of $8 par value common stock for $46,200, determine the result of the transaction on the accounts.
Select the correct answer.
a) Common Stock will be credited for $46,200.
b) Paid-in Capital in excess of Par Value will be credited for $16,800.
c) Paid-in Capital in excess of Par Value will be credited for $29,400.
d) Cash will be debited for $16,800.
20) The Snow Corporation issues 13,600 shares of $49 par value preferred stock for cash at $66 per share. The entry to record the transaction will consist of a debit to Cash for $897,600. What credit or credits will the entry consist of?
Select the correct answer.
a) Preferred Stock for $666,400 and Retained Earnings for $231,200.
b) Preferred Stock for $897,600.
c) Preferred stock for $666,400 and Paid-in Capital in Excess of Par Value - Preferred Stock for $231,200.
d) Paid-in Capital from Preferred Stock for $897,600.
Explanation / Answer
Answers
* CORRECT OPTIONS are mentioned along with solutions.
16) A corporation issues 3,450 shares of common stock for $110,400. The stock has a stated value of $19 per share. What amount of credit to Common Stock would the journal entry to record the stock issuance include?
Select the correct answer.
= 3450 shares x $ 19 stated value = $ 65,550
b) $65,550
18) Hurd Company acquired a building valued at $162,000 for property tax purposes in exchange for 10,000 shares of its $5 par common stock. The stock is widely traded and sold for $18 per share. At what amount should the building be recorded by Hurd Company?
Select the correct answer.
10,000 shares x $ 18 market value of shares = $ 180,000
d) $180,000
19) If Larger Company issues 2,100 shares of $8 par value common stock for $46,200, determine the result of the transaction on the accounts.
Select the correct answer.
Paid in Value = $ 46,200 – (2100 shares x $ 8 per share) = 46200 – 16800 = $ 29,400
c) Paid-in Capital in excess of Par Value will be credited for $29,400.
20) The Snow Corporation issues 13,600 shares of $49 par value preferred stock for cash at $66 per share. The entry to record the transaction will consist of a debit to Cash for $897,600. What credit or credits will the entry consist of?
Select the correct answer.
---Preferred Stock credited by = 13600 shares x $ 49 par = $ 666,400
---Pain in Capital in excess of Par – Preferred stock credited by = 13600 shares x ($ 66 - $ 49) = 13600 x 17 = $ 231,200
c) Preferred stock for $666,400 and Paid-in Capital in Excess of Par Value - Preferred Stock for $231,200.
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.