Question

5 of 7 5956,000 D) $131.500 20. The following information is from the balance sheet of Teder Cage s of December 31, 2014 Preferred stock, S100 par $ 500.000 Paid-in capital in se preferred 35.000 Common stock, Spar Paid-in capital is re c omme Retained carings 131 S Total stockholders' equity S1236 What was the average issue price of the common stack has A) SI 90 B) $1.00 C) 51.00 DSILIS 21. Dallkin Corporation issued 5,000 shares of common stock on January 1, 2013. The stock has no par value and was sold at SIP share. The journal entry for this transaction would A) dcbit Cash $90,000 and credit Common stock $90,000 B) debit Cash 590.000 and credit Paid-in capital S00,000 C) credit Cash 50,000 and debit Common stack 590,000 D) credit Cash $90,000, debit Paid-in capital 55,000, and dehit Common stock $,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 Aldebit Cash SI00 and credit Common stock S100 B) Credit Cash S10,000 and debit Common stock $10,000 C) debit Paid-in capital 59,900 and credit Common stock $9.900 D) debit Cash S10,000, credit Common stock S100, and credit Paid-in capital 59.900 23. Chaney Corporation issued 20,000 shares of common stock on January 1, 2014. The stock has par value of S1.00 per share and was sold at $10 per share. The journal entry for this traction would A) credit Cash S600,000, dcbit Common stock $20,000, and dcbit Paid-in capital 5550.000 B) debit Cash S600.000 and credit Paid in capital 600.000 C) debit Cash S600,000, credit Common stock 520,000, and credit Paid-in capital 5580,000 Di dcbit Cash S600,000 and credit Common stock 600 000 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 stack. Stock has par value of S h are and was issued at $14.00 per share • Issued 1,000 shares of S100 par value preferred stock. Shares were issued at par • Earned net income of SO5.000 • Paid no dividends Page 5 of 7 Alcad of 2013, what is the total amount of Stockholders' equity? A $45. BSI2000

Answer 1

There are so many questions asked in screen. However, I'll try to solve as many as I can in given time:

Question No. 20

No. of Common Stock: 190000/1 = 190000

Total Issue Price of Common Stock = Common Stock $1 at par + Paid In capital in excess of par

= 190000+380000 = 570000

Issue price per share= Total Issue price/ No. of shares issued

Issue price per share = 570000/190000

=3

Therefore, the option C is right, issue price per common stock is $3

Question 21

Option A is right, journal entry will be:

Cash A/c Dr. $90000

to Common Stock $90000

(Being 5000 common stock issued at $18 per share)

Question 22

Option A is right, journal entry will be:

Cash A/c Dr. $100 (No. of Shares issued x Issue Price per share)

to Common Stock $100 (No. of Shares issued x Par value per share)

Question 23

Option C is right, journal entry will be as follows:

Cash A/c Dr. $600000 (No. of shares issued x Issue Price Per Share

to Common Stock $ 20000 (No. of Shares issued x Par Value Per Share)

to Paid in capital in excess of par $ 580000 {No. of shares issued x (Issue Price per share -Par Value per share)

Question 24

When dividend declared, it becomes liability to the Corporation. Therefore, the option A is right.

Question 25 is not readable properly as the some figure is hidden under Arrow Marks of image