Answered: A corporation issued 100 shares of $100…

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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Account Titles and Explanation Debit Credit Choose a transaction date…

A: Journal entry: Journal entry is a set of economic events which can be measured in financial terms.…

Q: The entry to record the declaration of dividend of a $0.75 per share dividend on 12,500 outstanding…

A: Dividend: dividend is the portions of profit given to the shareholders by the company There are…

Q: A corporation issues 1,500 shares of common stock for $32,000. The stock has a par value of $10 per…

A: Company may raise capital or funds from the issue of common stock or preference stock. When these…

Q: The charter of a corporation provides for the issuance of 91,724 shares of common stock. Assume that…

A: When shares are reacquired, the dividends are not required to be paid on such stocks.

Q: Sneed Corporation issues 13,300 shares of $46 par preferred stock for cash at $61 per share. The…

A: Whenever the preferred stock shares are issued at premium i.e above their par value, the par value…

Q: The Sneed Corporation issues 10,900 shares of $49 par preferred stock for cash at $63 per share. The…

A: Share capital: It refers to the cap[ital raised by the company by issuing common stock or preferred…

Q: Incentive Corporation was authorized to issue 12,000 shares of common stock, each with a $1…

Q: 1,000 shares of common stock with a par value of $5 is sold for $8. Which of the following is…

A: Journal entries are the building blocks of accounting, which is the act of recording the economic or…

Q: Divine Apparel has 2,900 shares of common stock outstanding. On October 1, the company declares a…

A: Dividend: Dividend is a part of income paid to shareholders of an organization for the investment…

Q: A journal entry for the sale of $5-par common stock for $15 per share would include a debit to Cash.…

A: In most of the cases, sale of common stock gives cash in return. This increases the cash balance of…

Q: A corporation originally issued $6 par value common stock for $11 per share. It purchased the stock…

A: Treasury stock refers to a method used by the organization to repurchase the issued stock. It is…

Q: On July 1, Hanson Corporation issued 10 shares of $100 par value preferred stock for cash of $1,000…

A: Given, Par value = $100 Issue price = $1,000 Number of shares issued = 10

Q: MJH Company issued 50 shares of stock with a par value of $10 per share for $12 a share. The entry…

A: MJH Company Issued 50 shares of stock with a par value of $10 per share for $12 a share.

Q: On February 13, Solar Company declared a cash dividend of $45,000 to be paid on April 30 to…

A: The cash dividend indicates the portion of earnings declared by the company to be paid to its…

Q: The charter of a corporation provides for the issuance of 10,000 shares of common stock. Assume that…

A: Formula: Cash dividends = Number of outstanding shares x Dividend per share. Multiplying dividend…

Q: Kohler Corporation reports the following components of stockholders’ equity on January 1. Common…

A: INTRODUCTION: If a firm purchased a car, the value of the car would increase its assets. However, an…

Q: A company reacquired 100 shares of $1 par value common stock for $2,000. What is the journal entry…

A: Treasury stock: Shares which are bought back by the company from the open market but not retired…

Q: A corporation issues 5,000 shares of common stock for $62,000. The stock has a stated value of $10…

A: Issuing common stock at more than par means selling shares at a price higher than their stated or…

Q: Prepare journal entries to record the following transactions for Sherman Systems. a. Purchased…

A: The journal entries are prepared to record the transactions on regular basis. The treasury stock…

Q: tock for 35,000 cash 2. A corporation issued 2,000 shares of par common stock to its promotors in…

A: Journal entry: Journal entry is the book of original entry where first transactions are recorded in…

Q: The charter of a corporation provides for the issuance of 95,735 shares of common stock. Assume that…

A: Formulas: Cash dividend = Out standing shares * Dividend per share Cash dividend =(Shares issued -…

Q: The charter of a corporation provides for the issuance of 114,615 shares of common stock. Assume…

A: Note: Dividend is paid on the number of shares issued and outstanding. Number of shares issued and…

Q: ns. The following journal entries D 3 D D Credit 245,000 25,000 126,ᎾᎾᎾ 44,ᎾᎾᎾ 59,900 54,400 30,000…

A: The total number of shares issued and being held by stockholders, including both outside investors…

Q: Kinkaid Company was incorporated at the beginning of this year and had a number of transactions. The…

A: Introduction: A security that represents ownership of a company is common stock. The board of…

Q: Nebraska Inc. issues 4,150 shares of common stock for $132,800. The stock has a stated value of $18…

A: The organization can raise funds for the operation by issuing common stock, preferred stock for the…

Q: On May 10, Blue Spruce Corporation issues 3,050 shares of $10 par value common stock for cash at $20…

A: The organization can raise funds for the operation song integrity by issuing common stock, preferred…

Q: If a corporation issues 6,000 shares of $5 par value common stock for $89,000, the journal entry…

A: Total par value of Common Stock = No. of Common Stock issued x par value per share = 6000 x $5 =…

Q: A company's board of directors declared a $0.50 per share cash dividend on its $3 par common stock.…

A: Number of shares=Issued shares-Treasury stock=18,000-5,000=13,000

Q: When Wisconsin Corporation was formed on January 1, the corporate charter provided for 94,200 shares…

A: Common stock: These are the ordinary shares that a corporation issues to the investors in order to…

Q: A company issued 50 shares of $100 par value common stock for $7,400 cash. The journal entry to…

A: INTRODUCTION: Common stock is a sort of investment that reflects equity ownership in a firm. Other…

Q: The Sneed Corporation issues 11,100 shares of $54 par preferred stock for cash at $62 per share. The…

A: The company can raise funds from different sources like by issuing common stock, issuing preferred…

Q: Prepare the journal entry to record Jevonte Company's issuance of 36,000 shares of its common stock…

A: Journal entry :— It is an act of recording transaction in books of account when it is occurred.…

Q: Common stock (par $2; no changes during the current year). Shares authorized, 5,000,e00. Shares…

A: 1)Shares issued: = Common stock account/ $2 par = $150,000/2 = 75,000 shares Shares outstanding:…

Q: Nexis Corp. issues 1,900 shares of $12 par value common stock at $17 per share. When the transaction…

A: Journal entries are passed following the golden rules of accounting Debit all assets and expenses…

Q: Gotham Inc. issued 10,000 shares of its $2 par value common stock for $25 per share. The journal…

A: Cash (10,000 x $25) 250,000 Common Stock (10,000 x $2) 20,000 Additional Paid-in Capital…

Q: Requirement 1. Record the transactions in Halborn's general journal. (Record debits first, then…

A: The dividend is declared to the shareholders from the retained earnings of the business. The…

Q: Complete the necessary journal entry by selecting the account names from the drop-down menus and…

A: Issue of Shares for cash is a one of the source of raising finance for a company. Equity…

Q: 1. Prepare the journal entry to record Tamas Company's issuance of 5,000 shares of $100 par value,…

A: Solution... 1. Cash received on issuance = 5,000 shares * $102 per share = $510,000 Par value…

Q: On April 2 a corporation purchased for cash 6,000 shares of its own $13 par common stock at $27 a…

A: Treasury stock are the shares bought back by the company and are shown as deduction from the…

Q: A corporation sold 9,500 shares of its $10 par value common stock at a cash price of $11 per share.…

A: >Issuance of common stock is one of the Financing activity from which the corporation gets Cash…

Q: Nebraska Inc. issues 2,300 shares of common stock for $73,600. The stock has a stated value of $12…

A: Given that issued common stock = 2300 shares stated value = $12 per share

Q: Prepare the journal entry to record Zende Company's issuance of 79,000 shares of $8 par value common…

A: The legal capital which is printed on the stock certificate is the par value of common stock, it is…

Q: have a: par value and sell for $19 cash per share. stated value and sell for $19 cash per shar

A: Answer : Date Account title Debit Credit 1 Cash a/c Dr. (41000*$19) $779,000 To common…

Q: A corporation issued 6,000 shares of its $2 par value common stock in exchange for land that has a…

A: A journal is a part of the books of accounts, which is used to record all the transactions of the…

Q: The Shoe Exchange issues 5,000 shares of its $1 par value common stock to provide funds for further…

A: Given, Number of shares issued = 5,000 Par value of stock = $1 Issue price of the stock = $12

Q: The Snow Corporation issues 9,800 shares of $52 par value preferred stock for cash at $66 per share.…

A: Definition: Preferred stock: The stock that provides a fixed amount of return (dividend) to its…

Q: 4 nalyze each transaction from issuances of stock by showing its effect on the accounting…

A: Lets understand the basics. As per balance sheet equation, total assets is always equal to total of…

Concept explainers

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.

Question

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

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

A corporation purchases 1,000 shares of its own common stock for $4,000 on February 13. On April 13, half of the treasury stock was sold for $3,000. On April 26, the other half of the treasury stock was sold for $1,800. The entry to record the April 26 sale would include a a.credit to Cash for $1,800. b.debit to Paid-In Capital from Sale of Treasury Stock for $200. c.debit to Treasury Stock for $2,000. d.credit to Paid-In Capital from Sale of Treasury Stock for $1,200.
Prepare the journal entry to record Rony Company's issuance of 35,000 shares of its common stock assuming the share have a : a. $4par value and sell for $16 cash per share b. S4 stated value and sell for $16 per share.
The charter of a corporation provides for the issuance of 95,662 shares of common stock. Assume that 37,907 shares were originally issued and 3,885 were subsequently reacquired. What is the amount of cash dividends to be paid if a $2 per share dividend is declared? a.$68,044 b.$3,885 c.$95,662 d.$37,907
Entity H issued 9,000 shares of its $1 par value common stock for $20 per share. Which of the following statements is correct? Hint: Make the journal entry first. Common stock should be credited for $180,000. Cash should be credited for $180,000. Paid-in-capital-in-excess-of-par-value should be debited for $171,000. Common stock should be credited for $9,000.
1. Analyze each transaction from issuances of stock by showing its effect on the accounting equation specifically, identify the accounts and amounts (including + or -) for each transaction. 1. 2. 2. 2. 3. 3. 4. [The following information applies to the questions displayed below.] Following are the issuances of stock transactions. 1. A corporation issued 7,000 shares of $10 par value common stock for $84,000 cash. 2. A corporation issued 3,500 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $51,000. The stock has a $1 per share stated value. 4 3. A corporation issued 3,500 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $51,000. The stock has no stated value. 4. A corporation issued 1,750 shares of $50 par value preferred stock for $138,500 cash. Assets = = Liabilities + + Equity
A corporation sold 9,000 shares of its $10 par value common stock at a cash price of $13 per share. The entry to record this transaction. would include: Multiple Choice A debit to Cash for $90,000. A debit to Paid-in Capital in Excess of Par Value, Common Stock for $117,000. A credit to Common Stock for $117,000. A credit to Paid-in Capital in Excess of Par Value, Common Stock for $207,000. A credit to Common Stock for $90,000.
Prepare the journal entry to record Zende Company's issuance of 75,000 shares of $5 par value common stock assuming the shares sell for: a. $5 cash per share. b. $6 cash per share. View transaction list Journal entry worksheet 1 > Record the issuance of 75,000 shares of $5 par value common stock assuming the shares sell for $5 cash per share. Note: Enter debits before credits. 3/ F6 F7 F8 F9 F10
The shares of stock sold to investors are Select one: a. Treasury shares. b. Authorized shares. c. Issued shares. d. Outstanding shares. A firm that sold one share of $1 par value common stock for $10 would Select one: a. Debit common stock for $1. b. Debit common stock for $10. c. Credit common stock for $1. d. Credit common stock for $10. For a bond issued at par, the cash received upon issue equals the present value of the bond’s Select one: a. Principal repayment minus the interest payments. b. Principal repayment and interest payments. c. Principal repayment. d. Interest payments.
During its first year of operations, Swifty Corporation had the following transactions pertaining to its common stock Jan. 10 Issued 75,000 shares for cash at $7 per share. July 1 Issued 35,000 shares for cash at $9 per share. (a) Journalize the transactions, assuming that the common stock has a par value of $7 per share. (List all debit entries before credit entries. Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually) Your answer is correct. Date Jan 10 July 1 Account Titles and Explanation Cash Common Stock Cash Paid-in Capital in Excess of Par-Common Stock Common Stock Debit 525000 315000 Credit WI 525000 70000 245000
Nebraska Inc. issues 4,200 shares of common stock for $134,400. The stock has a stated value of $14 per share. The journal entry for the stock issuance would include a credit to Common Stock for a. $4,200 b. $75,600 c. $58,800 d. $134,400
a. Journalize the following transactions: i. January 10. Received cash from three incorporators for 75,000 shares of common stock, $375,000.00. R1-3. ii. iii. iv. V. vi. vii. viii. ix. January 10. Paid cash to Aaron Lovell as a reimbursement for organization costs, $10,000. C1. Value of Preferred Stock January 10. Received a subscription from Amory Lin for 10,000 shares of common stock, $50,000.00. M1. Total Amount of Dividends January 15. Received cash for the face value of a 5-year, 10%, $1,000.00 par value bond issue, $50,000.00. R11. January 25. Received a subscription from Peter Lavine for 8,000 shares of common stock, $40,000.00. M2. February 14. Received cash from Amory Lin in partial payment of stock subscription, $25,000. R4. March 15. Paid cash to Peter Lavine for 500 shares of common stock at $10.00 per share. C112. March 20. Received cash from Amory Lin in final payment of stock subscription, $25,000.00. R5. b. At the end of the year, Al-Can Products, Inc. had issued…
Pina Colada Inc. issues 4,650 shares of $100 par value preferred stock for cash at $145 per share.Journalize the issuance of the preferred stock. what is the title or explanation? what is debit or credit ?