Question

16) A corporation issues 3,450 shares of common stock for $110,400. The stock has a stated value of $19 per share. What amount of credit to Common Stock would the journal entry to record the stock issuance include?

Select the correct answer.

a) $44,850

b) $65,550

c) $110,400

d) $3,450

18) Hurd Company acquired a building valued at $162,000 for property tax purposes in exchange for 10,000 shares of its $5 par common stock. The stock is widely traded and sold for $18 per share. At what amount should the building be recorded by Hurd Company?

Select the correct answer.

a) $162,000

b) $130,000

c) $50,000

d) $180,000

19) If Larger Company issues 2,100 shares of $8 par value common stock for $46,200, determine the result of the transaction on the accounts.

Select the correct answer.

a) Common Stock will be credited for $46,200.

b) Paid-in Capital in excess of Par Value will be credited for $16,800.

c) Paid-in Capital in excess of Par Value will be credited for $29,400.

d) Cash will be debited for $16,800.

20) The Snow Corporation issues 13,600 shares of $49 par value preferred stock for cash at $66 per share. The entry to record the transaction will consist of a debit to Cash for $897,600. What credit or credits will the entry consist of?

Select the correct answer.

a) Preferred Stock for $666,400 and Retained Earnings for $231,200.

b) Preferred Stock for $897,600.

c) Preferred stock for $666,400 and Paid-in Capital in Excess of Par Value - Preferred Stock for $231,200.

d) Paid-in Capital from Preferred Stock for $897,600.

Answer 1

* CORRECT OPTIONS are mentioned along with solutions.

16) A corporation issues 3,450 shares of common stock for $110,400. The stock has a stated value of $19 per share. What amount of credit to Common Stock would the journal entry to record the stock issuance include?

Select the correct answer.

= 3450 shares x $ 19 stated value = $ 65,550

b) $65,550

18) Hurd Company acquired a building valued at $162,000 for property tax purposes in exchange for 10,000 shares of its $5 par common stock. The stock is widely traded and sold for $18 per share. At what amount should the building be recorded by Hurd Company?

Select the correct answer.

10,000 shares x $ 18 market value of shares = $ 180,000

d) $180,000

19) If Larger Company issues 2,100 shares of $8 par value common stock for $46,200, determine the result of the transaction on the accounts.

Select the correct answer.

Paid in Value = $ 46,200 – (2100 shares x $ 8 per share) = 46200 – 16800 = $ 29,400

c) Paid-in Capital in excess of Par Value will be credited for $29,400.

20) The Snow Corporation issues 13,600 shares of $49 par value preferred stock for cash at $66 per share. The entry to record the transaction will consist of a debit to Cash for $897,600. What credit or credits will the entry consist of?

Select the correct answer.

---Preferred Stock credited by = 13600 shares x $ 49 par = $ 666,400

---Pain in Capital in excess of Par – Preferred stock credited by = 13600 shares x ($ 66 - $ 49) = 13600 x 17 = $ 231,200

c) Preferred stock for $666,400 and Paid-in Capital in Excess of Par Value - Preferred Stock for $231,200.