Question

20. The following information is from the balance sheet of Tudor Corporation as of December 31, 2014 Preferred stock, S100 par Paid-in capital in excess of par preferred Common stock, SI par Paid-in capital in excess of par common Retained earnings Total stockholders' equity What was the average issue price of the common stock shares? A) S1.90 B) $1.00 C) $3.00 D) S13.15 $ 500,000 35,000 190,000 380,000 131.500 SL236.500 21. Dallkin Corporation issucd 5,000 shares of common stock on January 1, 2013. The stock has no par value and was sold at S18 per share. The journal entry for this transaction would: A) debit Cash $90,000 and credit Common stock $90,000. B) debit Cash $90,000 and credit Paid-in capital S600,000. C) credit Cash S90,000 and debit Common stock $90,000. D) credit Cash S90,000, debit Paid-in capital S5,000, and debit Common stock $85,000. 22. Bradley Corporation issued 10,000 shares of common stock on January 1, 2013. The stock has par value of s0.01 per share and was sold for cash at par. The journal entry to record this transaction would: A) debit Cash S100 and credit Common stock $100. B) credit Cash $10,000 and debit Common stock $10,000. C) debit Paid-in capital $9,900,and credit Common stock $9,900. D) debit Cash $10,000, credit Common stock $100, and credit Paid-in capital $9,900. 23. Chaney Corporation issued 20,000 shares of common stock on January 1, 2014. The stock has par value of $1.00 per share and was sold at S30 per share. The journal entry for this transaction would: A) credit Cash $600,000, debit Common stock $20,000, and debit Paid-in capital $580,000. B) debit Cash S600,000 and credit Paid-in capital S600,000. C) debit Cash S600,000, credit Common stock $20,000, and credit Paid-in capital S580,000 D) debit Cash S600,000 and credit Common stock S600,000. 24. On which of the following dates do dividends become a liability of a corporation? A) On the declaration date B) On the date of record C) At the end of the fiscal year D) On the payment date 25. Lemer Company had the following transactions in 2013, its first year of operations Issued 20,000 shares of common stock. Stock has par value of $1.00 per share and was issued at $14.00 per share. Issued 1,000 shares of S100 par value preferred stock. Shares were issued at par. Eamed net income of $35,000. Paid no dividends Page 5 of 7 At ead of 2013, what is the total amount of Stockholders' equity? A S4 5.00 B S120,00

please answer the following multiple choice questions

Answer 1

20]

par value of common stock = $190,000

excess over par value (common stock) = $380,000

Total issue amount = par value + excess over par value = $190,000 + $380,000 = $570,000

Number of shares outstanding = par value of common stock / par value per share

Number of shares outstanding = $190,000 / $1 = 190,000

Issue price =  Total issue amount / Number of shares outstanding

Issue price =  $570,000 / 190,000

Issue price =  $3.00