Use the following information to answer questions 30 and 31. When Calvert Corporation was formed on January 1, 2010, the corporate charter provided for 50,000 shares of $20 par value common stock. The following transactions were among those engaged in by the corporation during its first month of operation: 1. The corporation issued 200 shares of stock to its lawyer in full payment of the $5,000 bill for assisting the company in drawing up its articles of incorporation and filing the proper papers with the state agency. 2. The company issued 8,000 shares of stock at a price of $25 per share. 3. The company issued 7,000 shares of stock in exchange for equipment that had a fair market value of $160,000. 30 The entry to record transaction 2 is A) Cash Stock $ Common Stock B) Cash Common Stock Additional Paid-in Capital C) Cash Common Stock D) Cash Common Stock E) None of the above bove 31 The entry to record transaction 3 is: A) Equipment Common Stock B) Common Stock Equipment Equipment Common Stock D) Equipment Common Stock Additional Paid-in Capital E) None of the above Additional Paid-in Capital $ $ $ $ $ $ $ 200,000 200,000 160,000 40,000 160,000 140,000 140,000 160,000 160,000 $ 200,000 $ 160,000 40,000 $ $ 200,000 $ 160,000 $ 140,000 $ 140,000 $ 160,000 $ 140,000 $ 20,000
Use the following information to answer questions 30 and 31. When Calvert Corporation was formed on January 1, 2010, the corporate charter provided for 50,000 shares of $20 par value common stock. The following transactions were among those engaged in by the corporation during its first month of operation: 1. The corporation issued 200 shares of stock to its lawyer in full payment of the $5,000 bill for assisting the company in drawing up its articles of incorporation and filing the proper papers with the state agency. 2. The company issued 8,000 shares of stock at a price of $25 per share. 3. The company issued 7,000 shares of stock in exchange for equipment that had a fair market value of $160,000. 30 The entry to record transaction 2 is A) Cash Stock $ Common Stock B) Cash Common Stock Additional Paid-in Capital C) Cash Common Stock D) Cash Common Stock E) None of the above bove 31 The entry to record transaction 3 is: A) Equipment Common Stock B) Common Stock Equipment Equipment Common Stock D) Equipment Common Stock Additional Paid-in Capital E) None of the above Additional Paid-in Capital $ $ $ $ $ $ $ 200,000 200,000 160,000 40,000 160,000 140,000 140,000 160,000 160,000 $ 200,000 $ 160,000 40,000 $ $ 200,000 $ 160,000 $ 140,000 $ 140,000 $ 160,000 $ 140,000 $ 20,000
Chapter14: Corporation Accounting
Section: Chapter Questions
Problem 5PB: Paydirt Limestone, Incorporated was organized several years ago and was authorized to issue...
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Transcribed Image Text:Use the following information to answer questions 30 and 31.
When Calvert Corporation was formed on January 1, 2010, the
corporate charter provided for 50,000 shares of $20 par value
common stock. The following transactions were among those engaged
in by the corporation during its first month of operation:
1.
The corporation issued 200 shares of stock to its lawyer in
full payment of the $5,000 bill for assisting the company in
drawing up its articles of incorporation and filing the proper
papers with the state agency.
2.
The company issued 8,000 shares of stock at a price of $25 per
share.
3.
The company issued 7,000 shares of stock in exchange for
equipment that had a fair market value of $160,000.
30 The entry to record transaction 2 is
A)
Cash
$
Common Stock
B) Cash
Common Stock
Additional Paid-in Capital
C)
C) Cash
Common Stock
D) Cash
Common Stock
E) None of the above above
31 The entry to record transaction 3 is:
A) Equipment
Common Stock
B) Common Stock
Equipment
C) Equipment
Common Stock
D) Equipment
Common Stock
Additional Paid-in Capital
E) None of the above
Additional Paid-in Capital
$
$
$
$
$
$
$
U23
200,000
200,000
160,000
40,000
160,000
140,000
140,000
160,000
160,000
0812
$ 200,000
$ 160,000
$
40,000
$ 200,000
$ 160,000
$ 140,000
$ 140,000
$ 160,000
$
140,000
$
20,000
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