Common stock: It shows the value of shareholders‘ capital in the company. it means the amount invested by the owner of the company. To identify: The correct option to record the transaction. Answer: 'Option e is correct Date Account Title and Explanation Post ref Debit($) Credit($) Cash 48,000 Common Stock 30,000 Paid in capital in excess of par value 18,000 (Being shares issued at above face value )

Question

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Answer 1

Question

Chapter 11, Problem 1MCQ

To determine

Common stock:

It shows the value of shareholders‘ capital in the company. it means the amount invested by the owner of the company.

To identify: The correct option to record the transaction.

Answer:

'Option e is correct

Date
Account Title and Explanation
Post ref
Debit($)
Credit($)

Cash

48,000

Common Stock

30,000

Paid in capital in excess of par value

18,000

(Being shares issued at above face value )

Expert Solution & Answer

Explanation of Solution

Cash is an asset. Since, cash is received, it increases asset. Hence debit cash account
Common stock is equity. Since, shares is issued, it increases equity. Hence, credit common stock account.
Paid in capital in excess of par value is part of a shareholder‘s fund. Since, money is received, it increases equity. Hence, credit paid in capital in excess of par value.

Option a:

Option a- is incorrect. As debit in paid in capital in excess of par value will reduce equity but in issue, equity increases.

Option b:

Option b-is incorrect. As 6,000 shares of $5 face value is issue. So, it will only increase common stock by $30,000.

Option c:

Option c- is incorrect. As paid in capital in excess of par value will only increase by $18,000 and not $30,000 because paid in capital in excess of par value is received for 6,000 shares of $3 each.

Option d:

Option d is incorrect. A credit to cash means reduction in asset but in issue, asset increases.

Conclusion

Thus, the correct option is e.

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Chapter 15 Homework 13 Saved Help Save & Exit Submit Part 1 of 2 0.83 points eBook Ask Required information Use the following information to answer questions. (Algo) [The following information applies to the questions displayed below.] Information on Kwon Manufacturing's activities for its first month of operations follows: a. Purchased $100,800 of raw materials on credit. b. Materials requisitions show the following materials used for the month. Job 201 Job 202 Total direct materials Indirect materials Total materials used $ 49,000 24,400 73,400 9,420 $ 82,820 c. Time tickets show the following labor used for the month. Print References Job 201 $ 40,000 Job 202 13,400 Total direct labor 53,400 25,000 $ 78,400 Indirect labor Total labor used d. Applied overhead to Job 201 and to Job 202 using a predetermined overhead rate of 80% of direct materials cost. e. Transferred Job 201 to Finished Goods Inventory. f. Sold Job 201 for $166,160 on credit. g. Incurred the following actual other…

quesrion 2

Answer 2

Question

Chapter 11, Problem 1MCQ

To determine

Common stock:

It shows the value of shareholders‘ capital in the company. it means the amount invested by the owner of the company.

To identify: The correct option to record the transaction.

Answer:

'Option e is correct

Date
Account Title and Explanation
Post ref
Debit($)
Credit($)

Cash

48,000

Common Stock

30,000

Paid in capital in excess of par value

18,000

(Being shares issued at above face value )

Expert Solution & Answer

Explanation of Solution

Cash is an asset. Since, cash is received, it increases asset. Hence debit cash account
Common stock is equity. Since, shares is issued, it increases equity. Hence, credit common stock account.
Paid in capital in excess of par value is part of a shareholder‘s fund. Since, money is received, it increases equity. Hence, credit paid in capital in excess of par value.

Option a:

Option a- is incorrect. As debit in paid in capital in excess of par value will reduce equity but in issue, equity increases.

Option b:

Option b-is incorrect. As 6,000 shares of $5 face value is issue. So, it will only increase common stock by $30,000.

Option c:

Option c- is incorrect. As paid in capital in excess of par value will only increase by $18,000 and not $30,000 because paid in capital in excess of par value is received for 6,000 shares of $3 each.

Option d:

Option d is incorrect. A credit to cash means reduction in asset but in issue, asset increases.

Conclusion

Thus, the correct option is e.

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Answer 3

Question

Chapter 11, Problem 1MCQ

To determine

Common stock:

It shows the value of shareholders‘ capital in the company. it means the amount invested by the owner of the company.

To identify: The correct option to record the transaction.

Answer:

'Option e is correct

Date
Account Title and Explanation
Post ref
Debit($)
Credit($)

Cash

48,000

Common Stock

30,000

Paid in capital in excess of par value

18,000

(Being shares issued at above face value )

Expert Solution & Answer

Explanation of Solution

Cash is an asset. Since, cash is received, it increases asset. Hence debit cash account
Common stock is equity. Since, shares is issued, it increases equity. Hence, credit common stock account.
Paid in capital in excess of par value is part of a shareholder‘s fund. Since, money is received, it increases equity. Hence, credit paid in capital in excess of par value.

Option a:

Option a- is incorrect. As debit in paid in capital in excess of par value will reduce equity but in issue, equity increases.

Option b:

Option b-is incorrect. As 6,000 shares of $5 face value is issue. So, it will only increase common stock by $30,000.

Option c:

Option c- is incorrect. As paid in capital in excess of par value will only increase by $18,000 and not $30,000 because paid in capital in excess of par value is received for 6,000 shares of $3 each.

Option d:

Option d is incorrect. A credit to cash means reduction in asset but in issue, asset increases.

Conclusion

Thus, the correct option is e.

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Answer 4

Question

Chapter 11, Problem 1MCQ

To determine

Common stock:

It shows the value of shareholders‘ capital in the company. it means the amount invested by the owner of the company.

To identify: The correct option to record the transaction.

Answer:

'Option e is correct

Date
Account Title and Explanation
Post ref
Debit($)
Credit($)

Cash

48,000

Common Stock

30,000

Paid in capital in excess of par value

18,000

(Being shares issued at above face value )

Expert Solution & Answer

Explanation of Solution

Cash is an asset. Since, cash is received, it increases asset. Hence debit cash account
Common stock is equity. Since, shares is issued, it increases equity. Hence, credit common stock account.
Paid in capital in excess of par value is part of a shareholder‘s fund. Since, money is received, it increases equity. Hence, credit paid in capital in excess of par value.

Option a:

Option a- is incorrect. As debit in paid in capital in excess of par value will reduce equity but in issue, equity increases.

Option b:

Option b-is incorrect. As 6,000 shares of $5 face value is issue. So, it will only increase common stock by $30,000.

Option c:

Option c- is incorrect. As paid in capital in excess of par value will only increase by $18,000 and not $30,000 because paid in capital in excess of par value is received for 6,000 shares of $3 each.

Option d:

Option d is incorrect. A credit to cash means reduction in asset but in issue, asset increases.

Conclusion

Thus, the correct option is e.

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Answer 5

Chapter 11, Problem 1MCQ

To determine

Common stock:

It shows the value of shareholders‘ capital in the company. it means the amount invested by the owner of the company.

To identify: The correct option to record the transaction.

Answer:

'Option e is correct

Date
Account Title and Explanation
Post ref
Debit($)
Credit($)

Cash

48,000

Common Stock

30,000

Paid in capital in excess of par value

18,000

(Being shares issued at above face value )

Expert Solution & Answer

Explanation of Solution

Cash is an asset. Since, cash is received, it increases asset. Hence debit cash account
Common stock is equity. Since, shares is issued, it increases equity. Hence, credit common stock account.
Paid in capital in excess of par value is part of a shareholder‘s fund. Since, money is received, it increases equity. Hence, credit paid in capital in excess of par value.

Option a:

Option a- is incorrect. As debit in paid in capital in excess of par value will reduce equity but in issue, equity increases.

Option b:

Option b-is incorrect. As 6,000 shares of $5 face value is issue. So, it will only increase common stock by $30,000.

Option c:

Option c- is incorrect. As paid in capital in excess of par value will only increase by $18,000 and not $30,000 because paid in capital in excess of par value is received for 6,000 shares of $3 each.

Option d:

Option d is incorrect. A credit to cash means reduction in asset but in issue, asset increases.

Conclusion

Thus, the correct option is e.

Answer 6

Chapter 11, Problem 1MCQ

To determine

Common stock:

It shows the value of shareholders‘ capital in the company. it means the amount invested by the owner of the company.

To identify: The correct option to record the transaction.

Answer:

'Option e is correct

Date
Account Title and Explanation
Post ref
Debit($)
Credit($)

Cash

48,000

Common Stock

30,000

Paid in capital in excess of par value

18,000

(Being shares issued at above face value )

Expert Solution & Answer

Explanation of Solution

Cash is an asset. Since, cash is received, it increases asset. Hence debit cash account
Common stock is equity. Since, shares is issued, it increases equity. Hence, credit common stock account.
Paid in capital in excess of par value is part of a shareholder‘s fund. Since, money is received, it increases equity. Hence, credit paid in capital in excess of par value.

Option a:

Option a- is incorrect. As debit in paid in capital in excess of par value will reduce equity but in issue, equity increases.

Option b:

Option b-is incorrect. As 6,000 shares of $5 face value is issue. So, it will only increase common stock by $30,000.

Option c:

Option c- is incorrect. As paid in capital in excess of par value will only increase by $18,000 and not $30,000 because paid in capital in excess of par value is received for 6,000 shares of $3 each.

Option d:

Option d is incorrect. A credit to cash means reduction in asset but in issue, asset increases.

Conclusion

Thus, the correct option is e.

Answer 7

Chapter 11, Problem 1MCQ

To determine

Common stock:

It shows the value of shareholders‘ capital in the company. it means the amount invested by the owner of the company.

To identify: The correct option to record the transaction.

Answer:

'Option e is correct

Date
Account Title and Explanation
Post ref
Debit($)
Credit($)

Cash

48,000

Common Stock

30,000

Paid in capital in excess of par value

18,000

(Being shares issued at above face value )

Answer 8

Expert Solution & Answer

Explanation of Solution

Cash is an asset. Since, cash is received, it increases asset. Hence debit cash account
Common stock is equity. Since, shares is issued, it increases equity. Hence, credit common stock account.
Paid in capital in excess of par value is part of a shareholder‘s fund. Since, money is received, it increases equity. Hence, credit paid in capital in excess of par value.

Option a:

Option a- is incorrect. As debit in paid in capital in excess of par value will reduce equity but in issue, equity increases.

Option b:

Option b-is incorrect. As 6,000 shares of $5 face value is issue. So, it will only increase common stock by $30,000.

Option c:

Option c- is incorrect. As paid in capital in excess of par value will only increase by $18,000 and not $30,000 because paid in capital in excess of par value is received for 6,000 shares of $3 each.

Option d:

Option d is incorrect. A credit to cash means reduction in asset but in issue, asset increases.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Conclusion

Thus, the correct option is e.

Answer 12

Ch. 11 - Prob. 1MCQ Ch. 11 - Prob. 2MCQ Ch. 11 - Prob. 3MCQ Ch. 11 - Prob. 4MCQ Ch. 11 - Prob. 5MCQ Ch. 11 - Prob. 1DQ Ch. 11 - Prob. 2DQ Ch. 11 - Prob. 3DQ Ch. 11 - Prob. 4DQ Ch. 11 - Prob. 5DQ

Date	Account Title and Explanation	Post ref	Debit($)	Credit($)
	Cash		48,000
	Common Stock		30,000
	Paid in capital in excess of par value			18,000
	(Being shares issued at above face value )

Explanation of Solution

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Chapter 11 Solutions