On May 10, the Martin Corporation issued 2,000 shares of $3.00 par value Common Stock forcash at $15.00 per share. Which of the following statements is true regarding this transaction?A) Cash is debited in the amount of $30,000 and Common Stock is credited for $30,000B) Cash is debited in the amount of $6,000 and Common Stock is credited for $6,000C) Cash is debited in the amount of $30,000 and Common Stock is credited for $6,000D) Cash is debited in the amount of $36,000 and Common Stock is credited for $6,000and Paid-in Capital in excess of par is credited for $30,000

Company means a form of business where the share holder invest money in business in form of shares…

porati 2,000 res of $3.00 par value Common Stock fo cash at $15.00 per share. Which of the following statements is true regarding this transact A) Cash is debited in the amount of $30,000 and Common Stock is credited for $30,000 3) Cash is debited in the amount of $6,000 and Common Stock is credited for $6,000 E) Cash is debited in the amount of $30,000 and Common Stock is credited for $6,000 D) Cash is debited in the amount of $36,000 and Common Stock is credited for $6,000 and Paid-in Capital in excess of par is credited for $30.000

porati 2,000 res of $3.00 par value Common Stock fo cash at $15.00 per share. Which of the following statements is true regarding this transact A) Cash is debited in the amount of $30,000 and Common Stock is credited for $30,000 3) Cash is debited in the amount of $6,000 and Common Stock is credited for $6,000 E) Cash is debited in the amount of $30,000 and Common Stock is credited for $6,000 D) Cash is debited in the amount of $36,000 and Common Stock is credited for $6,000 and Paid-in Capital in excess of par is credited for $30.000

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 10MC: A company issued 40 shares of $1 par value common stock for $5,000. The journal entry to record the...

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The following selected accounts appear in the ledger of EJ Construction Inc. at the beginning of the current fiscal year: During the year, the corporation completed a number of transactions affecting the stockholders equity. They are summarized as follows: a. Issued 500,000 shares of common stock at 8, receiving cash. b. Issued 10,000 shares of preferred 1% stock at 60. c. Purchased 50,000 shares of treasury common for 7 per share. d. Sold 20,000 shares of treasury common for 9 per share. e. Sold 5,000 shares of treasury common for 6 per share. f. Declared cash dividends of 0.50 per share on preferred stock and 0.08 per share on common stock. g. Paid the cash dividends. Instructions Journalize the entries to record the transactions. Identify each entry by letter.
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Nutritious Pet Food Companys board of directors declares a cash dividend of $1.00 per common share on November 12. On this date, the company has issued 12,000 shares but 2,000 shares are held as treasury shares. What is the journal entry to record the declaration of this dividend?
Stockholders equity accounts and other related accounts of Gonzales Company as of January 1, 20--, the beginning of its fiscal year, are shown below. (a)Received 20,000 for the balance due on subscriptions for preferred stock with a par value of 40,000 and issued the stock. (b)Purchased 10,000 shares of common treasury stock for 18 per share. (c)Received subscriptions for 10,000 shares of common stock at 19 per share, collecting down payments of 45,000. (d)Issued 15,000 shares of common stock in exchange for land with a fair market value of 290,000. (e)Sold 5,000 shares of common treasury stock for Si00,000. (f)Issued 10,000 shares of preferred stock at 11.50 per share, receiving cash. (g)Sold 3,000 shares of common treasury stock for 17 per share. REQUIRED 1. Prepare general journal entries for the transactions, identifying each transaction by letter. 2. Post the journal entries to appropriate T accounts. The cash account has a beginning balance of 300,000. 3. Prepare the stockholders equity section of the balance sheet as of December 31, 20--. Net income for the year was 825,000 and dividends of 400,000 were paid.
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