7 which of the following would be included in the entry to record the issuance of 5 4306982

7 which of the following would be included in the entry to record the issuance of 5 4306982

7) Which of the following would be included in the entry to record the issuance of 5,000 shares of $10 par value common stock at $13 per share cash?

A) Cash would be debited for $65,000.

B) Common Stock would be debited for $50,000.

C) Common Stock would be credited for $65,000.

D) Paid-In Capital in Excess of Par—Common would be debited for $15,000.

8) Which of the following occurs when a shareholder invests cash in a corporation in exchange for stock?

A) Both liabilities and stockholders' equity are increased.

B) Both assets and stockholders' equity are increased.

C) One asset is increased and another asset is decreased.

D) Both assets and liabilities are increased.

9) The following information is from the balance sheet of Lawson Corporation as of December 31, 2015.

Preferred Stock, $100 par

$500,000

Paid-in Capital In Excess of Par—Preferred

35,000

Common Stock, $1 par

170,000

Paid-in Capital in Excess of Par—Common

510,000

Retained Earnings

131,500

Total Stockholders' Equity

$1,346,500

What was the average issue price of the common stock shares?

A) $1.90

B) $1.00

C) $3.00

D) $4.00

10) The following information is from the balance sheet of Jackson Corporation as of December 31, 2015.

Preferred Stock, $100 par

$200,000

Paid-in Capital in Excess of Par—Preferred

14,000

Common Stock, $1 par

68,000

Paid-in Capital in Excess of Par—Common

203,000

Retained Earnings

52,600

Total Stockholders' Equity

$537,600

What is the average issue price of the preferred stock shares?

A) $107

B) $100

C) $176

D) $105

11) The following information is from the balance sheet of Tudor Corporation as of December 31, •   2015.

Preferred Stock, $100 par

$300,000

Paid-in Capital in Excess of Par—Preferred

21,000

Common Stock, $1 par

102,000

Paid-in Capital in Excess of Par—Common

306,000

Retained Earnings

78,900

Total Stockholders' Equity

$807,900

What was the total paid-in capital as of December 31, 2015?

A) $606,000

B) $807,900

C) $729,000

D) $708,000

12) Bradley Corporation issued 10,000 shares of common stock on January 1, 2015. The stock has a par value of $0.01 per share and was sold for cash at par. Which of the following is the correct journal entry to record this transaction?

A) Cash debited for $100 and Common Stock—$0.01 Par Value credited for $100

B) Cash credited for $10,000 and Common Stock—$0.01 Par Value debited for $10,000

C) Paid-In Capital in Excess of Par—Common debited for $9,900 and Common Stock—$0.01 Par Value credited for $9,900

D) Cash debited for $10,000, Common Stock—$0.01 Par Value credited for $100, and Paid-In Capital in Excess of Par-Common credited for $9,900

13) Dallkin Corporation issued 5,000 shares of common stock on January 1, 2015. The stock has no par value and was sold at $18 per share. The journal entry for this transaction would include a:

A) debit to Cash for $90,000 and a credit to Common Stock—No-Par Value for $90,000.

B) debit to Cash for $90,000 and a credit to Paid-In Capital in Excess of Par—Common for $600,000.

C) credit to Cash for $90,000 and a debit to Common Stock—No-Par Value for $90,000.

D) credit to Cash for $90,000, a debit to Paid-In Capital in Excess of Par—Common for $5,000, and a debit to Common Stock—No-Par Value for $85,000.

14) On December 2, 2015, Ewell Company purchases a piece of land from the original owner. In payment for the land, Ewell Company issues 8,000 shares of common stock with $1.00 par value. The land has been appraised at a market value of $400,000. Which of the following is included in the journal entry to record this transaction?

A) debit Common Stock—$1 Par Value for $8,000 and debit Paid-In Capital in Excess of Par—Common $392,000.

B) credit Common Stock—$1 Par Value for $8,000 and credit Paid-In Capital in Excess of Par—Common $392,000.

C) credit Common Stock—$1 Par Value for $400,000.

D) debit Cash $400,000.

15) Osbourne Company issued 50,000 shares of common stock in exchange for manufacturing equipment. The equipment has a fair value of $1,000,000. The stock has par value of $0.01 per share. Which of the following is included in the journal entry to record this transaction?

A) debit Cash $5,000

B) credit Gain on Sale of Common Stock $1,050,000

C) credit Paid-In Capital in Excess of Par—Common $999,500

D) credit Common Stock—$0.01 Par Value $1,000,000

16) Peterson Company issued 4,000 shares of preferred stock for $240,000. The stock has a par value of $60 per share. The journal entry to record this transaction would:

A) credit Cash $240,000, debit Preferred Stock—$60 Par Value $4,000, and debit Paid-In Capital in Excess of Par—Preferred $236,000.

B) debit Cash $240,000, credit Preferred Stock—$60 Par Value $4,000, and credit Paid-In Capital in Excess of Par—Preferred $236,000.

C) credit Cash $240,000 and debit Preferred Stock—$60 Par Value $240,000.

D) debit Cash $240,000 and credit Preferred Stock—$60 Par Value $240,000.

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