13. 13.Nexis Corp. issues 930 shares of $8 par value common stock at $18 per sha

Question

13. 13.Nexis Corp. issues 930 shares of $8 par value common stock at $18 per share. When the transaction is recorded, credits are made to

a.Common Stock, $9,300 and Paid-In Capital in Excess of Stated Value, $7,440.

b.Common Stock, $16,740.

c.Common Stock, $9,300 and Retained Earnings, $7,440.

d.Common Stock, $7,440, and Paid-In Capital in Excess of Par—Common Stock, $9,300.

14.

If Dakota Company issues 1,500 shares of $6 par common stock for $75,000,

a.Paid-In Capital in Excess of Par will be credited for $9,000

b.Common Stock will be credited for $75,000

c.Paid-In Capital in Excess of Par will be credited for $66,000

d.Cash will be debited for $66,000

Explanation / Answer

13.Journal:

Cash a/c..Dr$16740(930*18)

To common stock $7440

To  Paid-In Capital in Excess of Par—Common Stock $9300

Hence the correct option is D.

14.

Journal:

Cash a/c..Dr$75000

To common stock $9000

to Paid-In Capital in Excess of Par $66000

Hence the correct option is C.

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.