A company issues 10,000 shares of common stock at a par value of $2 per share for $50,000. Howmuch is credited to the Common Stock account?⚫A) $20,000⚫ B) $50,000⚫C) $30,000⚫D) $40,000

When a company issues common stock, the Common Stock account is credited with the par value of the…

Answered: A company issues 10,000 shares of…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 11MC: A company issued 30 shares of $.50 par value common stock for $12,000. The credit to additional...

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A company issued 30 shares of $.50 par value common stock for $12,000. The credit to additional paid-in capital would be ________. A. $11,985 B. $12,000 C. $15 D. $10,150
A corporation issued 100 shares of $100 par value preferred stock for $150 per share. The resulting journal entry would include which of the following? A. a credit to common stock B. a credit to cash C. a debit to paid-in capital in excess of preferred stock D. a debit to cash
If a company issues 10,000 shares of $2 par value common stock at a market price of $30 per share, which of the following is the correct balance sheet entry? Select one: a. Increase common stock and cash by $20,000 b. Increase cash by $300,000 and increase contributed capital by $300,000 c. Increase cash by $300,000 and increase retained earnings by $300,000 d. Increase revenues by $300,000
If a company issues 10,000 shares of $2 par value common stock at a market price of $30 per share, which of the following is the correct balance sheet entry? A. Increase revenues by $300,000 B. Increase common stock and cash by $20,000 C. Increase cash by $300,000 and increase common stock by $20,000 D. Increase cash by $300,000 and increase additional paid-in capital by $20,000
A corporation purchases 8,002 shares of its own $10 par common stock for $15 per share, recording it at cost. What will be the effect on total stockholders' equity? a.increase by $40,010 b.increase by $120,030 c.decrease by $40,010 d.decrease by $120,030
A company has an authorized capital of 10,000 common shares of $10 par value and 7,500 common shares are outstanding. During the year, the company issued 1,000 common shares of $10 par value at $15 per share. A journal entry is recorded to debit the Cash account by S15,000. Show the credit side of the journal entry? a. Credit Common stock account for $15,000 b. Credit Common stock account for $10,000 and Paid-in capital in-excess of Stated c. Credit Common stock account for $10,000 and Retained earnings account for d. Credit Common stock account for $10,000 and Paid-in capital in-excess of Par value account for $5,000 $5,000 value account for $5,000
If Company issues 3,000 shares of $8 par common stock for $51,000, a. Common Stock will be credited for $51,000. b. Paid-In Capital in Excess of Par will be credited for $27,000. c. Cash will be debited for $24,000. d. Paid-In Capital in Excess of Par will be credited for $24,000.
Suppose a company purchases 2,000 shares of its own $1 par value common stock for $16 per share. Which of the following is recorded at the time of the purchase? a. Debit Treasury Stock for $32,000. b. Debit Common Stock for $30,000. c. Debit Common Stock for $32,000. d. Debit Treasury Stock for $2,000.
Nebraska Inc. issues 3,000 shares of common stock for $45,000. The stock has a stated value of $10 per share. The journal entry to record the stock issuance would include a credit to Common Stock for a.$15,000 b.$3,000 c.$30,000 d.$45,000
A company issues 10,000 shares of $0.05 par value common stock for $25 per share. Which of the following is recorded at issuance? a. Credit Common Stock for $250,000. b. Credit Additional Paid-In Capital for $250,000. c. Credit Common Stock for $500. d. Credit Additional Paid-In Capital for $500.
17. When a company issues 25,000 shares of $1 par value common stock for $10 per share, the journal entry for this issuance would include: A debit to Cash for $25,000. A. B. C. D. A debit to Additional Paid-in Capital for $25,000. A credit to Common Stock for $250,000. A credit to Additional Paid-in Capital for $225,000.
Suppose a company declares a dividend of $0.50 per share. At the time of declaration, the company has 100,000 shares issued and 90,000 shares outstanding. On the declaration date, Dividends would be recorded for a. $0. b. $50,000. c. $45,000. d. $95,000.

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A company issues 10,000 shares of common stock at a par value of $2 per share for $50,000. How much is credited to the Common Stock account? ⚫A) $20,000 ⚫ B) $50,000 ⚫C) $30,000 ⚫D) $40,000