On September 1, Ziegler Corporation had 50,000 shares of $5 par value common sto

Question

On September 1, Ziegler Corporation had 50,000 shares of $5 par value common stock, and $1,500,000 on retained earnings. On that date, when the market price of the stock is $15 per share, the corporation issues a 2-fot-1 stock split. The general journal entry to record this transaction is: Debit Retained Earnings $750,000, credit Common Stock Split Distributable $750,000. Debit Retained Earnings $750,000, credit Common Stock $750,000. Debit Retained Earnings $250,000, credit Common Stock $250,000. Debit Retained Earnings $250,000; credit Stock Split Payable $250,000. No entry is made for this transactions. On January 1, 2013, a company issued and sold an $850,000, 6%, five-year bond payable and received proceeds of $825,000. Interest is payable cach June 30 and December 31. The company uses the straight-line method to amortize the discount. The journal entry to record the first interest payment is: A company had a beginning balance in retained earnings of $43,000. It had net income of $6,000 and paid out cash dividends of $5,625 in the current period. The ending balance in retained earnings account is equal to. $108,625 $(12,625) $11,375 $43,375 $(11,375) A corporation void 14,000 shares of its $10 par value common stock at a cash price of $13 per share. The entry to record this transaction would include: A debit to Contributed Capital in Excess of Par Value, Common Stock, for $42,000. A debit to Cash for $140,000 A credit to Common Stock for $182,000 A credit to Stock for $140,000. A credit to Contributed Capital in Excess of Par Value. Common Stock, for $182,000.

Explanation / Answer

36 and 37 are not legible

38. E interest expense 25500 (850000 × 6% ×6/12)

Discount. Debit 2500 (850000 - 825000)10times

Cash credit 28000

39. D $43375.

Opening balance of retained earnings + current year profit - Dividend paid

=$43000 +$ 6000 -$ 5625

=$43375

40. D .credit to common stock for $140000

Journal entry ;

Cash debit $182000 (14000 × 13)

Common stock credit $140000 (14000×10)

Excess value received over stock credit $42000 (14000×3)

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