ACC 291 Week 4 Wiley Plus Assignments
DO IT! 11-1 Correct.
Indicate whether each of the following statements is true or false.
1. The corporation is an entity separate and distinct from its owners. True
2. The liability of stockholders is normally limited to their investment in the corporation. True
3. The relative lack of government regulation is an advantage of the corporate form of business. False
4. There is no journal entry to record the authorization of capital stock. True
5. No-par value stock is quite rare today. False
On October 31, the stockholders' equity section of Omar Company consists of common stock $600,000 and retained earnings $900,000. Omar is considering the following two…show more content…
3. Purchase of common treasury stock for cash.
4. Sale of treasury stock for cash. Account/Description Debit Credit
1. Land 296000 Preferred stock 240000 Paid-in cap. in excess of par value-Pref. stock 56000
2. Cash 7700000 Paid-in cap. in excess of stated value-Comm. stock 5700000 Common stock 2000000
3. Treasury stock-Common 33000 Cash 33000
4. Cash 14000 Treasury stock-Common 11000 Paid-in cap. from treasury stock 3000
Complete the stockholders' equity section at December 31, 2011. (Order multiple accounts in the standard format used in the text. Enter all amounts as positive amounts and subtract where necessary.)
Stockholders' equity Paid-in capital Capital stock 8% Preferred stock, $ 100 par value, noncumulative, 40000 shares authorized, 2400 shares issued and outstanding $ 240000 Common stock,no par, $ 5 stated value, 2000000 shares authorized 400000 shares issued and 399000 outstanding 2000000 Total capital stock 2240000 Additional paid-in capital In excess of par value-preferred stock $ 56000 In excess of stated value