2. Paltel Corp. issued 10,000 shares of its $5 par value common stock having a market value of $25 per share, and 15,000 shares of its $15 par value preferred stock having a market value of $20 per share for a lump sum of $480,000. How much of the proceeds would be allocated to the common stock? a. $50,000 $218,182 (0,000x25 $250,000 $255,000
2. Paltel Corp. issued 10,000 shares of its $5 par value common stock having a market value of $25 per share, and 15,000 shares of its $15 par value preferred stock having a market value of $20 per share for a lump sum of $480,000. How much of the proceeds would be allocated to the common stock? a. $50,000 $218,182 (0,000x25 $250,000 $255,000
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter15: Contributed Capital
Section: Chapter Questions
Problem 1MC
Related questions
Question
![2. Paltel Corp. issued 10,000 shares of its $5 par value common stock having a market value of
$25 per share, and 15,000 shares of its $15 par value preferred stock having a market value
of $20 per share for a lump sum of $480,000. How much of the proceeds would be allocated
to the common stock?
10,000x25
a. $50,000
6 $218,182
$250,000
$255,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F04fc612d-0c9a-4e57-a12e-3c77fba78ed0%2F2652d925-e2b4-4cbf-8327-3c0af81b6110%2Faeusiu_processed.jpeg&w=3840&q=75)
Transcribed Image Text:2. Paltel Corp. issued 10,000 shares of its $5 par value common stock having a market value of
$25 per share, and 15,000 shares of its $15 par value preferred stock having a market value
of $20 per share for a lump sum of $480,000. How much of the proceeds would be allocated
to the common stock?
10,000x25
a. $50,000
6 $218,182
$250,000
$255,000
![9. Sims Company originally issued 2,000 shares of $10 par value common stock for $60,000 ($30
per share). Sims subsequently purchases 200 shares of treasury stock for $27 per share and
resells the 200 shares of treasury stock for $29 per share. In the entry to record the sale of
the treasury stock, there will be a
a.) credit to Common Stock for $5,400.
b. credit to Treasury Stock for $2,000.
c. debit to Paid-In Capital in Excess of Par Value of $6,000.
d. credit to Paid-In Capital from Treasury Stock for $400.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F04fc612d-0c9a-4e57-a12e-3c77fba78ed0%2F2652d925-e2b4-4cbf-8327-3c0af81b6110%2Fjae7dm_processed.jpeg&w=3840&q=75)
Transcribed Image Text:9. Sims Company originally issued 2,000 shares of $10 par value common stock for $60,000 ($30
per share). Sims subsequently purchases 200 shares of treasury stock for $27 per share and
resells the 200 shares of treasury stock for $29 per share. In the entry to record the sale of
the treasury stock, there will be a
a.) credit to Common Stock for $5,400.
b. credit to Treasury Stock for $2,000.
c. debit to Paid-In Capital in Excess of Par Value of $6,000.
d. credit to Paid-In Capital from Treasury Stock for $400.
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