41 refer to exhibit 15 2 lawrence received final payment 80 on 1 800 shares and issu 4313691

41 refer to exhibit 15 2 lawrence received final payment 80 on 1 800 shares and issu 4313691

41.Refer to Exhibit 15-2. Lawrence received final payment (80%) on 1,800 shares and issued those shares. Subscribers defaulted on 200 shares. The entries to record receipt of final payment and issuance of 1,800 shares would include a

a.debit to Cash for $24,000.

b.credit to Subscriptions Receivable: Common Stock for $24,000.

c.debit to Common Stock Subscribed for $10,000.

d.credit to Common Stock for $9,000.

42.Refer to Exhibit 15-2. Lawrence received final payment (80%) on 1,800 shares and issued those shares. Subscribers defaulted on 200 shares. The entry to record the default on 200 shares would include a

a.debit to Common Stock Subscribed for $3,000.

b.credit to Subscriptions Receivable: Common Stock for $3,000.

c.debit to Additional Paid-in Capital on Common Stock for $2,000.

d.credit to Additional Paid-in Capital from Subscribed Stock for $600.

43.When common stock is issued at an amount greater than par value, the difference between the par value and the proceeds from the sale is recorded by

a.crediting the common stock account.

b.debiting an additional paid-in capital account.

c.crediting the retained earnings account.

d.crediting an additional paid-in capital account.

44.A corporation acquired a copyright by issuing 1,000 shares of $5 par common stock. At the time of the exchange, the stock was selling for $40 per share. The copyright had a carrying value of $18,000 to the author. The purchasing corporation should assign to the copyright a value of

a.$18,000.

b.$5,000.

c.$32,000.

d.$40,000.

45.A corporation issues 50 “packages” of securities for $154 per package. Each package consists of three shares of $5 par common stock and one share of $50 par preferred stock. If the market values of $40 per share for the common stock and $100 per share for preferred stock are known, the journal entry to record the sale would assign a total value to the preferred stock of

a.$3,500.

b.$4,200.

c.$5,775.

d.$6,000.

46.In the financial statements, dividends in arrears on cumulative preferred stock should be

a.disclosed in the footnotes.

b.classified as an offset to retained earnings.

c.classified as a liability either current or long term.

d.classified as an offset to net income.

47.What account should be debited when stock issuance costs are associated with the initial issuance of stock at incorporation?

a.Organization Expense

b.Additional Paid-in Capital

c.Organization Costs

d.Common stock

48.When existing corporations issue stock, costs such as legal fees and underwriter's fees are usually accounted for as

a.organization expenses.

b.reduction of Additional Paid-in Capital.

c.organizational costs.

d.reduction of Retained Earnings.

49.Which one of the following entries would not be likely to be made by a corporation?

a.

Land                                     XX

  Common Stock, $10 stated value                  XX

  Additional Paid-in Capital on Common Stock        XX

b.

Cash                                     XX

  Common Stock, no-par                          XX

  Additional Paid-in Capital on Common Stock        XX

c.

Cash                                    XX

Subscriptions Receivable: Common Stock             XX

  Common Stock Subscribed                      XX

  Additional Paid-in Capital on Common Stock       XX

d.

Building                                 XX

  Common Stock, no-par                         XX

50.A company is exchanging its common stock for land in a nonmonetary exchange. This transaction should be valued based upon the

a.fair value of the stock.

b.book value of the land.

c.fair value of the stock issued and the land received.

d.fair value of the stock issued and the land received, whichever is more reliable.

"Get 15% discount on your first 3 orders with us"
Use the following coupon
"FIRST15"

Order Now

Related Posts