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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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