A. governing body. B. officers of the corporation. C. stockholders. D. board of
ID: 2489050 • Letter: A
Question
A. governing body.
B. officers of the corporation.
C. stockholders.
D. board of directors
In exchange for $1,500 legal services to help set up the new company, Hickory Grove Corporation issued 100 shares of $10 par value stock to its attorney. The entry to record the issuance of the stock would include a
A. credit to Common Stock for $1,000.
B. debit to Common Stock for $1,000.
C. credit to Common Stock for $1,500.
D. debit to Paid-In Capital in Excess of Par Value for $500.
Washington Corporation issued 4,000 shares of its $20 par value common stock for $23 per share. The entry to record the issuance would include a
A. debit to Cash for $80,000.
B. credit to Common Stock for $12,000.
C. credit to Common Stock for $80,000.
D. debit to Paid-In Capital in Excess of Par Value for $12,000.
Soy.com has 100 shares of $100, 6% cumulative nonparticipating preferred stock, and 1,000 shares of $10 par value common stock outstanding. The company paid $2,000 cash dividends, including one-year dividends in arrears to preferred stockholders. Preferred stockholders received
A. $1,200.
B. $2,000.
C. $182.
D. $600.
n exchange for $1,500 legal services to help set up the new company, Hickory Grove Corporation issued 100 shares of $10 par value stock to its attorney. The entry to record the issuance of the stock would include a
A. credit to Common Stock for $1,000.
B. debit to Common Stock for $1,000.
C. credit to Common Stock for $1,500.
D. debit to Paid-In Capital in Excess of Par Value for $500.
A. governing body.
B. officers of the corporation.
C. stockholders.
D. board of directors
In exchange for $1,500 legal services to help set up the new company, Hickory Grove Corporation issued 100 shares of $10 par value stock to its attorney. The entry to record the issuance of the stock would include a
A. credit to Common Stock for $1,000.
B. debit to Common Stock for $1,000.
C. credit to Common Stock for $1,500.
D. debit to Paid-In Capital in Excess of Par Value for $500.
Washington Corporation issued 4,000 shares of its $20 par value common stock for $23 per share. The entry to record the issuance would include a
A. debit to Cash for $80,000.
B. credit to Common Stock for $12,000.
C. credit to Common Stock for $80,000.
D. debit to Paid-In Capital in Excess of Par Value for $12,000.
Soy.com has 100 shares of $100, 6% cumulative nonparticipating preferred stock, and 1,000 shares of $10 par value common stock outstanding. The company paid $2,000 cash dividends, including one-year dividends in arrears to preferred stockholders. Preferred stockholders received
A. $1,200.
B. $2,000.
C. $182.
D. $600.
n exchange for $1,500 legal services to help set up the new company, Hickory Grove Corporation issued 100 shares of $10 par value stock to its attorney. The entry to record the issuance of the stock would include a
A. credit to Common Stock for $1,000.
B. debit to Common Stock for $1,000.
C. credit to Common Stock for $1,500.
D. debit to Paid-In Capital in Excess of Par Value for $500.
Explanation / Answer
1 Hickory Grove Issued 100 shares of $10 par value for 1500 leagl fees So Acounting entry will have a credit entry of $100*10= $1,000 to common stcoks a/c and $500 to Additional paid in capital a/c. Option A is correct. 2 Isuue of Washington Corporation 4000 shares of $20 par @$23 So Credit will be $80,000 to Common stock (4000*20) and $12000 to Additional paid in Capital, Option C is correct. 3 Preference share Total Par value @$100 for 100 shares = 10,000 ANNUAL PREFERENCE DIVIDENMD @6%= 600 So Preference dividend payable with 1 years arrear dividend = 1,200 So preference shareholders got $1200 of the delared dividend Option A is correct.
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