Survey Of Accounting
5th Edition
ISBN: 9781259631122
Author: Edmonds, Thomas P.
Publisher: Mcgraw-hill Education,
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Textbook Question
Chapter 8, Problem 18Q
18. If Best Co. issued 10,000 shares of $20 par value common stock for $30 per share, what amount is credited to the Common Stock account? What amount of cash is received?
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Students have asked these similar questions
During its first year of operations, Flounder Corporation had the following transactions pertaining to its common stock.
Jan.
10
Issued 75,000 shares for cash at $6 per share.
July
1
Issued 41,000 shares for cash at $9 per share.
Journalize the transactions, assuming that the common stock has a par value of $6 per share.
What is the date?
What is the title or explanation ?
What is debit or credited ?
24. The board of directors of Elston Inc. declared a $0.60 per share cash dividend on its $1 par common stock. On the date of declaration, there were 50,000 shares authorized,
20,000 shares issued, and 5,000 shares held as treasury stock. What is the entry for the dividend declaration?
A. Retained earnings
Cash dividends payable
B. Retained earnings
Cash
C. Retained earnings
Cash dividends payable
D. Retained earnings
Cash
9,000
9,000
10,000
10,000
9,000
9,000
10,000
10,000
Which of the following would be included in the entry to record the issuance of 7,000 shares of $4 par value common stock at $27 per share?
Cash would be debited for $28,000.
Common stock would be debited for $28,000.
Common stock would be credited for $189,000.
Paid in capital in excess of par-common would be credited for $161,000.
Chapter 8 Solutions
Survey Of Accounting
Ch. 8 - Prob. 1QCh. 8 - Prob. 2QCh. 8 - Prob. 3QCh. 8 - Prob. 4QCh. 8 - 5. What is the purpose of the articles of...Ch. 8 - 6. What is the function of the stock certificate?Ch. 8 - Prob. 7QCh. 8 - Prob. 8QCh. 8 - 9. What is a limited liability company? Discuss...Ch. 8 - Prob. 10Q
Ch. 8 - 11. What is the difference between contributed...Ch. 8 - Prob. 12QCh. 8 - Prob. 13QCh. 8 - 14. What is the meaning of each of the following...Ch. 8 - 15. What is the difference between cumulative...Ch. 8 - 16. What is no-par stock? How is it recorded in...Ch. 8 - 17. Assume that Best Co. has issued and...Ch. 8 - 18. If Best Co. issued 10,000 shares of 20 par...Ch. 8 - 19. What is the difference between par value stock...Ch. 8 - 20. Why might a company repurchase its own stock?Ch. 8 - 21. What effect does the purchase of treasury...Ch. 8 - 22. Assume that Day Company repurchased 1,000 of...Ch. 8 - 23. What is the importance of the declaration...Ch. 8 - 24. What is the difference between a stock...Ch. 8 - 25. Why would a company choose to distribute a...Ch. 8 - 26. What is the primary reason that a company...Ch. 8 - 27. If Best Co. had 10,000 shares of 20 par value...Ch. 8 - 28. When a company appropriates retained earnings,...Ch. 8 - Prob. 29QCh. 8 - Prob. 30QCh. 8 - Prob. 31QCh. 8 - 32. What are some reasons that a corporation might...Ch. 8 - Prob. 1ECh. 8 - Exercise 8-2 Effect of accounting events on the...Ch. 8 - Prob. 3ECh. 8 - Prob. 4ECh. 8 - Exercise 8-5 Characteristics of capital stock The...Ch. 8 - Exercise 8-6 Effect of issuing common stock on the...Ch. 8 - Exercise 8-7 Recording and reporting common and...Ch. 8 - Prob. 8ECh. 8 - Prob. 9ECh. 8 - Prob. 10ECh. 8 - Prob. 11ECh. 8 - Prob. 12ECh. 8 - Exercise 8-13 Recording and reporting treasury...Ch. 8 - Prob. 14ECh. 8 - Prob. 15ECh. 8 - Prob. 16ECh. 8 - Prob. 17ECh. 8 - Prob. 18ECh. 8 - Prob. 19PCh. 8 - Problem 8-20 Effect of business structure on...Ch. 8 - Prob. 21PCh. 8 - Prob. 22PCh. 8 - Problem 8-23 Recording and reporting stock...Ch. 8 - Prob. 24PCh. 8 - Prob. 25PCh. 8 - Problem 8-26 Treasury stock transactions and...Ch. 8 - Prob. 27PCh. 8 - Prob. 28PCh. 8 - Prob. 1ATCCh. 8 - ATC 8-3 Research Assignment Analyzing Skecherss...Ch. 8 - Prob. 4ATCCh. 8 - ATC 11-7 Ethical Dilemma Bad news versus very bad...
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- 17. When a company issues 25,000 shares of $1 par value common stock for $10 per share, the journal entry for this issuance would include: A debit to Cash for $25,000. A. B. C. D. A debit to Additional Paid-in Capital for $25,000. A credit to Common Stock for $250,000. A credit to Additional Paid-in Capital for $225,000.arrow_forwardThe balance sheet caption for common stock is: Common stock, $10 par value, 7,000,000 shares authorized, 5,700,000 shares issued, and 5,500,000 shares outstanding. a. Calculate the dollar amount that will be presented opposite of this caption. b. Calculate the total amount of a cash dividend of $1.00 per share.c. What accounts for the difference between issued shares and outstanding shares?arrow_forwardDuring its first year of operations, Flounder Corporation had the following transactions pertaining to its common stock. Jan. 10 Issued 75,000 shares for cash at $6 per share. July 1 Issued 41,000 shares for cash at $9 per share. What is the date? What is the account title or explanation ? What is debit or credited ?arrow_forward
- Prepare the journal entry to record Zende Company's issuance of 79,000 shares of $8 par value common stock assuming the shares sell for: a. $8 cash per share. b. $9 cash per share. View transaction list Journal entry worksheetarrow_forward1.000 shares of common stock with a par value of $5 is sold for $8. Which of the following is correct: A. Cash is debited for $5,000 B. Common Stock is debited for $5,000 C. Paid in Capital in Excess of Par is credited for $3,000 D. Common Stock is credited for $8,000arrow_forwardMJH Company issued 50 shares of stock with a par value of $10 per share for $12 a share. The entry to journalize this would include: a credit to cash of $600 a debit to cash of $600 a debit to common stock of $500 a debit to Paid in Capital in Excess of Par of $100arrow_forward
- A company declared cash dividends of $0.20 per share. If there are 500,000 shares of common stock authorized, 100,000 shares issued, and 80,000 shares outstanding at the date of declaration, what is the amount that the company should record for the dividend? J/ 2:42 parrow_forwardPina Colada Inc. issues 4,650 shares of $100 par value preferred stock for cash at $145 per share.Journalize the issuance of the preferred stock. what is the title or explanation? what is debit or credit ?arrow_forward19. A company acquires 1,000 shares of its own $1 par common stock for $15 per share. This purchase would be recorded with a: A. B. C. D. Credit to Treasury Stock for $1,000 Debit to Additional Paid-In Capital for $14,000 Credit to Treasury Stock for $15,000 Debit to Treasury Stock for $15,000arrow_forward
- Crane Corporation has 70,000 shares of common stock outstanding. It declares a $1 per share cash dividend on November 1 to stockholders of record on December 1. The dividend is paid on December 31.Prepare the entries on the appropriate dates to record the declaration and payment of the cash dividend. What is the date? What are the title and explanations? Is it debit or credit?arrow_forwardPrepare the journal entry to record Jevonte Company’s issuance of 36,000 shares of its common stock assuming the shares have a a. $2 par value and sell for $18 cash per share. b. $2 stated value and sell for $18 cash per share.arrow_forwardThe charter of Zion Associates provides for the issuance of 100,000 shares of common stock. Assume that 60,000 shares were originally issued and 10,000 shares were subsequently reacquired. What is the amount of cash dividends to be paid if a $2-per-share dividend is declared? a. $80,000 b. $20,000 c. $90,000 d. $100,000 e. None of the abovearrow_forward
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Dividend explained; Author: The Finance Storyteller;https://www.youtube.com/watch?v=Wy7R-Gqfb6c;License: Standard Youtube License