Shelby Incorporated decided to exchange 10,000 shares $1.00 par common stock in

Question

Shelby Incorporated decided to exchange 10,000 shares $1.00 par common stock in exchange for legal services. The shares had a fair market value of $6 per share. The journal entry to record this event would include a: Credit of $60,000 to the Common Stock account. Debit to Legal Expenses for $10,000. Debit to Legal Expenses for $60,000. Credit of $60,000 to the cash account Fox Inc. has 5,000 shares of treasury stock with a total cost of $50,000. The company reissues 3,000 of those treasury shares for $15 per share. When the treasury share are reissued: Treasury Stock decreases by $45,000. Treasury Stock decreases by $30,000. Net income increases by $15,000. Common Stock increases by $45,000. CCL Inc. shows the following information in its stockholders' equity section of its balance sheet: What is the number of shares of common stock issued and outstanding On December 1, 2014, Harris, Inc. had the following capital stock outstanding: Dividends were not declared or paid at all in 2013. Total cash dividends of $50,000 were declared and paid in 2014. The total amounts of cash dividends distributed to preferred and common stockholders in 2014 are: Preferred: 50,000; Common: $0 Preferred: $25,000; Common: $25,000 Preferred: $20,000; Common: $30,000 Preferred: $40,000; Common: $10,000

Explanation / Answer

37.

Option c is correct

Debit to legal expenses 60000

38.

Option b is correct

Treasury stock decrease by 30000

39.

Option c is correct

Issued 20000 and outstanding 19500

Outstanding shares =issued-treasury stock

=20000-500=19500

40.

Option d is correct

Preferred shares 20000×2=40000 and common stock 50000-40000=10000

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