Badger Corporation issued 5,000 shares of its $5 par value common stock in payment for attorney services billed at $40,000. Badger Corporation's stock has been actively trading at $8 per share. The journal entry for this transaction would include a: A. debit to Legal Expense $25,000. B. credit to Common Stock $15,000. C. credit to Paid−in Capital in Excess of Par—Common $40,000. D. debit to Legal Expense $40,000.

Badger Corporation issued 5,000 shares of its $5 par value common stock in payment for attorney services billed at $40,000. Badger Corporation's stock has been actively trading at $8 per share. The journal entry for this transaction would include a: A. debit to Legal Expense $25,000. B. credit to Common Stock $15,000. C. credit to Paid−in Capital in Excess of Par—Common $40,000. D. debit to Legal Expense $40,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

On January 1, Marigold Corporation had 120000 shares of $10 par value common stock outstanding. On March 17, the company declared a 16% stock dividend to stockholders of record on March 20. Market value of the stock was $13 on March 17. The stock was distributed on March 30. The entry to record the transaction of March 30 would include a debit to Stock Dividends for $57600. credit to Paid-in Capital in Excess of Par for $57600. credit to Cash for $192000. O debit to Common Stock Dividends Distributable for $192000.
Farmers Incorporated issued 6,000 shares of its $10 par value common stock in exchange for land that has a market value of $84,000. The entry to record this transaction would include: A debit to Common Stock for $60,000 B. A debit to Land for $60,000 A credit to Land for $60,000
Prepare the journal entry to record Zende Company's issuance of 65,000 shares of $4 par value common stock assuming the shares sell for: a. $4 cash per share. b. $5 cash per share. View transaction list Journal entry worksheet Record the issuance of 65,000 shares of $4 par value common stock assuming the shares sell for $4 cash per share. 2 Note: Enter debits before credits. Transaction a. Record entry General Journal Clear entry Debit Credit View general journal
Nebraska Inc. issues 4,150 shares of common stock for $132,800. The stock has a stated value of $18 per share. The journal entry to record the stock issuance would include a credit to Common Stock for $58,100 b.$4,150 c.$132,800 d.$74,700
Quickbux Co. issued and sold 1,000 shares of common stock, with a par value of $5, for $12 per share. The company's balance in retained earnings is $90,000. What items/accounts and $ balances would you expect to see in the shareholder's equity section of the company's balance sheet (i.e., stock, retained earnings, etc.)?
Nexis Corp. issues 1,960 shares of $11 par value common stock at $15 per share. When the transaction is recorded, what credit entry or entries are made? a.Common Stock $29,400. b.Common Stock $21,560 and Paid-in Capital in Excess of Par Value $7,840. c.Common Stock $7,840 and Retained Earnings $21,560. d.Common Stock $21,560 and Paid-in Capital in Excess of Stated Value $7,840.
Torres Inc. issues 40,000 shares of its $0.05 par value common stock for $70 per share. The journal entry to record the stock issuance will include a: Debit to Common Stock of $2,000. Credit to Common Stock of $2,800,000. Credit to Cash of $2,800,000. Credit to Additional Paid in Capital of $2,798,000.
Wildhorse Inc. had these transactions pertaining to investments in common stock: Jan. 1 July 1 Purchased 1,240 shares of Gate Corporation common stock (5% of outstanding shares) for $62,000 cash. Received a cash dividend of $7 per share. Dec. 1 Sold 930 shares of Gate Corporation common stock for $48,360 cash. 31 Received a cash dividend of $7 per share. Journalize the transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Do not round intermediate values. Round final answers to O decimal places, e.g. 5,275.) Date L Account Titles and Explanation eTextbook and Media Debit Credit
The Sneed Corporation issues 11,100 shares of $54 par preferred stock for cash at $62 per share. The entry to record the transaction will consist of a debit to Cash for $688,200 and a credit or credits to a.Paid-in Capital from Preferred Stock for $688,200. b.Preferred stock for $599,400 and Paid-in Capital in Excess of Par Value−Preferred Stock for $88,800. c.Preferred Stock for $688,200. d.Preferred Stock for $599,400 and Retained Earnings for $88,800.
Badger Corporation issued 5000 shares of its $5 par value common stock in payment for attorney services billed at $40,000. Badger Corporation's stock has been actively trading at $7 per share. The journal entry for this transaction would include a: Ocredit to Additional Paid in Capital $40,000. Odebit to Legal Expense $40,000. Odebit to Legal Expense $35.000. Ocredit to Common Stock $55,000. None of the above.
Lily Corporation issued 5,400 shares of stock. Prepare the entry for the issuance under the following assumptions. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually.) (a) (b) (c) (d) The stock had a par value of $5 per share and was issued for a total of $68,000. The stock had a stated value of $5 per share and was issued for a total of $68,000. The stock had a par value of $5 per share and was issued to attorneys for services duri The stock had a par value of $5 per share and was issued for land worth $68,000.
McVie Corporation’s stock has a par value of $2. The company has the following transactions during the year: Feb. 28 Issued 330,000 shares at $5 share. Jun. 7 Issued 93,000 shares in exchange for equipment with a clearly determined value of $205,000. Sep. 19 Purchased 2,700 shares of treasury stock at $7 per share. Prepare the journal entries to record the transactions. If an amount box does not require an entry, leave it blank. Feb. 28 fill in the blank 2 fill in the blank 3 fill in the blank 5 fill in the blank 6 fill in the blank 8 fill in the blank 9 Jun. 7 fill in the blank 11 fill in the blank 12 fill in the blank 14 fill in the blank 15 fill in the blank 17 fill in the blank 18 Sep. 19 fill in the blank 20 fill in the blank 21 fill in the blank 23 fill in the blank 24