When common stock is issued in exchange for a noncash asset and the market value
ID: 2534657 • Letter: W
Question
When common stock is issued in exchange for a noncash asset and the market value of the stock is determinable, the acquired asset should usually be recorded at an amount equal to
a.
The book value of the noncash asset
b.
The par value of the stock
c.
The market value of the stock
d.
The market value of the noncash asset
2 Treasury stock is stock that is
a.
Authorized but not issued
b.
Issued and outstanding
c.
Issued but not outstanding
d.
Authorized and outstanding
Treasury stock is classified on the balance sheet as what type of account?
a.
Current asset
b.
Long-term investment
c.
Contributed capital
d.
Contra-stockholders' equity
A corporation's contributed capital is
a.
The total par value of the common and preferred stock, along with the associated amounts of paid-in capital in excess of par
b.
The total par value of the common and preferred stock
c.
The total par value of the common stock and the associated amounts of paid-in capital in excess of par
d.
The total par value of the preferred stock and the associated amounts of paid-in capital in excess of par
When 30,000 shares of $10 par-value common stock are issued at $30 per share, Paid-In Capital in Excess of Par, Common Stock is credited for
a.
$300,000
b.
$900,000
c.
$600,000
d.
$30,000
On January 1, 2012, Gem Company was authorized to issue 10,000 shares of $2 par common stock and 5,000 shares of $5 preferred stock. Given this information, if Gem Company issued 2,000 shares of common stock (with no known market value) for land with a book value of $15,000 (market value $10,000), the entry to record the transaction would include a
a.
Debit to Land of $10,000
b.
Credit to Common Stock of $15,000
c.
Credit to Paid-In Capital in Excess of Par, Common Stock of $11,000
d.
Debit to Land of $15,000
On January 1, 2012, Gem Company was authorized to issue 10,000 shares of $2 par common stock and 5,000 shares of $5 preferred stock. Given this information, if Gem Company issued 3,000 shares of common stock for $7 per share on January 10, 2012, the entry to record the issuance of the stock would include a
a.
Debit to Cash of $6,000
b.
Credit to Paid-In Capital in Excess of Par, Common Stock of $6,000
c.
Credit to Common Stock of $6,000
d.
Debit to Cash of $15,000
On January 1, 2012, Gem Company was authorized to issue 10,000 shares of $2 par common stock and 5,000 shares of $5 preferred stock. Given this information, if Georgi Company issued 2,000 shares of preferred stock for $20 per share on January 31, 2012, the entry to record the issuance of the stock would include a
a.
Debit to Cash of $30,000
b.
Credit to Paid-In Capital in Excess of Par, Preferred Stock of $10,000
c.
Credit to Preferred Stock of $40,000
d.
Debit to Cash of $40,000
At the beginning of the year,Gem Company issued 10,000 shares of no par common stock for $100 each. The journal entry to record this transaction would include a
a.
Debit to Cash of $20,000
b.
Credit to Common Stock of $1,000,000
c.
Credit to Cash of $1,000,000
d.
Debit to Common Stock of $1,000,000
a.
The book value of the noncash asset
b.
The par value of the stock
c.
The market value of the stock
d.
The market value of the noncash asset
Explanation / Answer
1) option d the market value of the non cash asset 2) option b issued and outstanding 3) option d contra stockholders equity 4) option a the total par value of the common and preferred stock along with the associated amounts of paid in capital in excess of par 5) 30000*20 600000 option c 6) option a debit to land $10,000 7) common stock CR 6000 paid in capital in excess CR 15000 option c 8) option d credit to cash $40,000 9) option b credit to common stock of $ 1,000,000
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