A corporation has the following account balances: Common Stock, $10 par value, $740,000; Paid-in Capital in Excess of Par, $1,850,000. Based on this information, the _______________. Question 1 options: legal capital is $2,590,000
A corporation has the following account balances: Common Stock, $10 par value, $740,000; Paid-in Capital in Excess of Par, $1,850,000. Based on this information, the _______________.Question 1 options:
| legal capital is $2,590,000 |
| shares issued are 1,850,000 |
| shares outstanding are 740,000 |
| legal capital is $740,000 ANSWER |
SaveQuestion 2 (5 points)
On January 2, 2015, Easton Corporation issued 50,000 shares of 5% cumulative preferred stock at $100 par value. No dividends have been paid to any shareholders since the formation of the corporation. Management wants to issue a dividend to common shareholders on December 31, 2016. What dividend amount, if any, must be paid to the preferred stockholders entitled before any distribution is made to common stockholders?Question 2 options:
| $0 |
| $500,000 ANSWER |
| $250,000 |
| $125,000 |
SaveQuestion 3 (5 points)
The Frederick Company has 100,000 shares of $5 par common stock outstanding. Management declares (not pays) a 10% stock dividend. The market value of a share of common stock was $32 immediately prior to the stock dividend declaration. The journal entry is:Question 3 options:
| debit retained earnings, $320,000; credit stock dividend distributable, $10,000; credit paid in capital in excess of par, $310,000. |
| debit retained earnings, $320,000; credit stock dividend distributable, $50,000; credit paid in capital in excess of par, $270,000. ANSWER |
| debit stock dividends distributable, $320,000; credit common stock, $320,000. |
| debit stock dividends distributable, $50,000; credit common stock, $50,000. |
SaveQuestion 4 (5 points)
The Frederick Company has 100,000 shares of $5 par common stock outstanding. Management PAYS (not declares) a 10% stock dividend. The market value of a share of common stock was $32 immediately prior to the stock dividend declaration. The journal entry is:Question 4 options:
| debit retained earnings $320,000; credit stock dividend distributable $10,000; credit paid in capital in excess of par $$310,000. |
| debit retained earnings $320,000; credit stock dividend distributable $50,000; credit paid in capital in excess of par $$270,000. |
| debit stock dividends distributable $320,000; credit common stock $320,000. |
| debit stock dividends distributable $50,000; credit common stock $50,000. |
SaveQuestion 5 (5 points)
Cambridge Hat Company previously purchased 20,000 shares of treasury stock on the open market for $12 per share. Later, the company resells 10,000 shares for $14 per share. What is the journal entry for the sale?Question 5 options:
| debit cash, $140,000; credit treasury stock, $120,000; credit additional paid-in capital—treasury stock, $20,000 ANSWER |
| debit cash, $140,000; credit treasury stock, $140,000 |
| debit cash, $140,000; credit treasury stock, $20,000; credit additional paid-in capital, $120,000 |
| debit cash, $140,000; credit treasury stock, $120,000; credit retained earnings, $20,000 |
Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code "Newclient"
