A company issues  1 million shares of common stock with a par value of $0.18 for $16.60 a share. The entry to record this transaction includes a debit to Cash for: Multiple Choice   $16,600,000, a credit to Common Stock for $180,000, and a credit to Additional Paid-in Capital for $16,420,000.   $16,600,000 and a credit to Common Stock for $16,600,000.   $180,000, a debit to Capital Receivable for $16,420,000, a credit to Common Stock for $180,000, and a credit to Additional Paid-in Capital for $16,420,000.   $180,000 and a credit to Common Stock for $180,000.

Q: Empresas La Sierra presents the following information: • On January 5, the company issues 25,000…

A: Journal: It refers to an account which shows all the financial transactions pertaining to a…

Q: The Sneed Corporation issues 10,900 shares of $49 par preferred stock for cash at $63 per share. The…

A: Share capital: It refers to the cap[ital raised by the company by issuing common stock or preferred…

Q: Riverbed Inc. issues 500 shares of $10 par value common stock and 100 shares of $100 par value…

A: Journal entries refer to the process of systematic documentation of the financial transactions of a…

Q: The Sneed Corporation issues 10,000 shares of $50 par preferred stock for cash at $75 per share.…

A: Paid in capital in excess of par = (Issue price per share - Face value per share) x No. of shares =…

Q: On February 22, Brett Corporation acquired 180 shares of its $3 par value common stock for $26 each.…

A: The accounting entry on purchase of treasury share at 26 was Debit Treasury stock 4680 and credit…

Q: February 16, Hawthorne Co. declares a $0.34 dividend to be paid on April 5. Hawthorne has 2,000,000…

A: Dividend  pay will result in cash outflows

Q: If Dakota Company issues 1,500 shares of $6 par common stock for $75,000, O Common Stock will be…

A: Issue of common stock is one of the ways in which the companies can raise funds for financing the…

Q: company issues 10,000 shares of $2 par value common stock at a market price of $30 per share, which…

A: Here company issued 10000 shares at market price of $30, par value of each share is $2

Q: If Dakota Company issues 1,100 shares of $6 par common stock for $24,200, a.Cash will be debited…

A: Common stock: These are the shares issued by a company to an outsider. These shares entitle a share…

Q: When a company issues 36,000 shares of $4 par value common stock for $40 per share, the journal…

A: The journal entry of share issuance requires a debit to cash account and credit to share capital…

Q: Sunshine Corp. was organized on Jan. 1 with authorization of 20,000 shares of $5 preferred stock,…

A: Common Stock - Common Stock is the stock issued to the public for raising capital. This recorded in…

Q: Read & Learn Company has $1,000,000 shares of 10%, $20 Par Value Preferred Stock outstanding. On…

A: Number of Preferred Stock outstanding on 15th December = 1,000,000 shares Therefore, Number of…

Q: Black Diamond Inc. issues 2,500 shares of $1 par valuecommon stock and 1,000 shares of $50 par value…

A: a. Prepare journal entries for issuance of common shares and preferred shares when market value of…

Q: A company has 180,000 shares of common stock authorized with a par of $1 per share, of which 30,000…

A: Stock dividend is the dividend declared and distributed among the shareholders but in form of stock.…

Q: Sneed Corporation issues 11,600 shares of $45 par preferred stock for cash at $67 per share. The…

A: Total par value of preferred stock issued = No. of shares issued x par value per share = 11,600…

Q: Bentiey Corporation received cash from issuing 12,000 shares of common stock at par on January 1,…

A: Issue of common stock is one of the ways in which the companies can raise funds for financing the…

Q: Coronado Industries has issued 1,500 shares of common stock and 300 shares of preferred stock for a…

A: The issue price of the stock could be issued at par, premium or discount. If the proceed from…

Q: If a corporation issues 6,000 shares of $5 par value common stock for $89,000, the journal entry…

A: Total par value of Common Stock = No. of Common Stock issued x par value per share = 6000 x $5 =…

Q: Smart Poly Machine issues 5,000 shares of 5%, $10 Par Value Preferred Stock for $10,000 cash,…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: A company issues 1 million shares of common stock with a par value of $0.14 for $16.20 a share. The…

A: If the common shares are issued for more than their par value. The excess amount goes to Additional…

Q: Evon, a limited liability company, issued 1,000,000 ordinary shares of 25 cents each at a price of…

A: We have the following information: Issued 1,000,000 ordinary shares of 25 cents each Issue $1.10…

Q: Torres Inc. issues 40,000 shares of its $0.05 par value common stock for $70 per share. The journal…

A: To record issue of shares at a value more than par value, common stock will be credited by par value…

Q: A company receives a subscription for 4,000 shares of $1 par value common stock at $10 per share.…

A: given  that,  company receives a subscription for 4,000 shares  par value per share = $1…

Q: The Sneed Corporation issues 11,100 shares of $54 par preferred stock for cash at $62 per share. The…

A: The company can raise funds from different sources like by issuing common stock, issuing preferred…

Q: On January 6, Dee-Light Corporation issued for cash 22,750 shares of $2 par value common stock at…

A: Common stock and preference stock are two types of stock issued by a company. When company receives…

Q: The Snow Corporation issues 9,900 shares of $54 par value preferred stock for cash at $62 per share.…

A: Whenever the preferred stock shares are issued at premium i.e above their par value, the par value…

Q: Elliptical Machine issues 5,000 shares of 5%, $10 Par Value Preferred Stock for $10,000 cash,…

A: Solution: Total Value for issuance = Cash + inventory + Note receivable  = 10000 + 20000 + 40000 =…

Q: A corporation sold 13,500 shares of its $10 par value common stock at a cash price of $14 per share.…

A: Common Stock - Common Stock is the stock issued to the common shareholder's of the company.

Q: Prepare the journal entry to record Autumn Company’s issuance of 63,000 shares of no-par value…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: ABC Corporation issues 5,000 ordinary shares with a $50 par value for cash at $55 per share. The…

A: At the time of issue of shares, any amount received over and above par value of shares is known as…

Q: When a company issues 27,000 shares of $5 par value common stock for $50 per share, the journal…

A: When shares  are issued  Cash will be received. Thus cash should be debited.

Q: A company issued 60 shares of $100 par value common stock for $7,900 cash. The journal entry to…

A: Journal entry is the recording of financial transactions by using the dual entity concept in which…

Q: A company has an authorized capital of 10,000 common shares of $10 par value and 7,500 common shares…

A: Stockholders’ equity is the measure of assets staying in a business after the sum total of the…

Q: A corporation sold 9,500 shares of its $10 par value common stock at a cash price of $11 per share.…

A: >Issuance of common stock is one of the Financing activity from which the corporation gets Cash…

Q: The Sneed Corporation issues 12,700 shares of $46 par preferred stock for cash at $63 per share. The…

A: The organization can raise funds for the operation by issuing common stock, preferred stock for…

Q: Sunshine Corp. was organized on Jan. 1 with authorization of 20,000 shares of $5 preferred stock,…

A: Journal is the book where transactions are originally recorded. Further, a journal entry is used to…

Q: The Snow Corporation issues 9,800 shares of $52 par value preferred stock for cash at $66 per share.…

A: Definition: Preferred stock: The stock that provides a fixed amount of return (dividend) to its…

Q: A corporation purchases 1,000 shares of its own common stock for $4,000 on February 13. On April 13,…

A: Treasury stocks are the stocks which the company buys back from the already issued  stocks  from the…

Q: Simon Corporation is authorized to issue 4,000,000 shares of P4 par value ordinary shares. The…

A: Stockholders' equity= Equity share capital + retained earnings - treasury shares  Or  All assets -…

Q: Bashir Inc. issues 2,500 shares of $1 par value common stock and 1,000 shares of $50 par value…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: Wildhorse Co. issues 36000 shares of $50 par value preferred stock for cash at $75 per share. In the…

A: Preferred Stock Capital will be increased by = No. of shares issued x Par value per share = 36000…

Q: Please show all work and answers: 1. On January 1st, ZYX company purchased 1,000 shares of its…

A: Stockholder's Equity - Stockholder's Equity includes the amount contributed by shareholders issued…

Q: Suppose a company purchases 2,000 shares of its own $1 par value common stock for $16 per share.…

A: Definition:

Q: Sneed Corporation issues 11,700 shares of $55 par preferred stock for cash at $60 per share. The…

A: Stocks: Stocks are shares in the ownership of the company. It represents the capital raised by a…

Q: A corporation sold 13,500 shares of its $10 par value common stock at a cash price of $14 per share.…

A: When shares are sold by a corporation in excess of par, cash is received and an increase in cash is…

Q: Badger corporation issued 9,000 shares of its $5 per value common stock in payment for attorney…

A: Total par value of Common Stock = No. of Common Stock issued x par value per share = 9000 x $5 =…

Q: Taylor Corporation issues 20,000 shares of $50 par value preferred stock for cash at $90 per share.…

A: Issue price of preferred stock=Number of Shares×Issue price=20,000×$90=$1,800,000

Q: The Sneed Corporation issues 10,000 shares of $50 par preferred stock for cash at $75 per share. The…

A: Cash received = 10,000 x $75 = $750,000 Preferred stock = 10,000 x $50 = $500,000 Excess = 10,000 x…

Q: Ravonette Corporation issued 300 shares of $10 par value common stock and 100 shares of $50 par…

A: Total market value of Common Stock = No. of shares x Market value per share  = 300 shares x $20 per…

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.