Question :
107. A company has 500 shares of $50 par value preferred : 1257672
107. A company has 500 shares of $50 par value preferred stock outstanding, and the call price of its preferred stock is $60 per share. It also has 20,000 shares of common stock outstanding, and the total value of its stockholders’ equity is $680,000. The company’s book value per common share equals:
A. $31.71.
B. $32.50.
C. $32.75.
D. $33.17.
E. $60.00.
108. The Discount on Common Stock account reflects:
A. The difference between the par value of stock and its issue price when it is issued at a price below par value.
B. One share’s portion of the issued corporation’s net assets recorded in its accounts.
C. The difference between the par value of the stock and the amount paid-in by stockholders when the amount paid-in is more than par value.
D. An amount of assets defined by state law that stockholders must invest and leave invested in a corporation.
E. The amount a corporation must pay in addition to dividends in arrears if and when it exercises its right to retire a share of callable preferred stock.
109. Percy Corporation was formed on January 1. The corporate charter authorized 100,000 shares of $10 par value common stock. During the first month of operation, the corporation issued 400 shares to its attorneys in payment of a $5,000 charge for drawing up the articles of incorporation. The entry to record this transaction would include:
A. A debit to Organization Expenses for $4,000.
B. A debit to Organization Expenses for $5,000.
C. A credit to Common Stock for $5,000.
D. A credit to Paid-in Capital in Excess of Par Value, Common Stock for $5,000.
E. A debit to Paid-in Capital in Excess of Par Value, Common Stock for $2,000.
110. A corporation sold 14,000 shares of its $1 par value common stock at a cash price of $13 per share. The entry to record this transaction would include:
A. A debit to Paid-in Capital in Excess of Par Value, Common Stock for $182,000.
B. A debit to Cash for $14,000.
C. A credit to Common Stock for $182,000.
D. A credit to Common Stock for $14,000.
E. A credit to Paid-in Capital in Excess of Par Value, Common Stock for $196,000.
111. Comfort Mattresses, Inc. sold 26,000 shares of its $1 par value common stock at a cash price of $12 per share. The entry to record this transaction would be:
A. Debit Cash $312,000; credit Common Stock $26,000; credit Paid-in Capital in Excess of Par Value, Common Stock $286,000.
B. Debit Cash for $312,000; credit Common Stock $312,000.
C. Debit Common Stock $26,000; debit Paid-in Capital in Excess of Par Value, Common Stock $286,000; credit Cash $312,000.
D. Debit Cash $312,000; credit Stock Liability $286,000; credit Common Stock $26,000.
E. Debit Common Stock $26,000; credit Cash $26,000.
112. A corporation issued 6,000 shares of its $2 par value common stock in exchange for land that has a market value of $84,000. The entry to record this transaction would include:
A. A debit to Common Stock for $12,000.
B. A debit to Land for $12,000.
C. A credit to Land for $12,000.
D. A credit to Paid-in Capital in Excess of Par Value, Common Stock for $72,000.
E. A credit to Common Stock for $84,000.
113. A corporation issued 100 shares of its $5 par value common stock in payment of a $1,800 charge from its accountant for assistance in filing its charter with the state. The entry to record this transaction will include:
A. A $1,800 credit to Common Stock.
B. A $300 debit to Organization Expenses.
C. A $1,300 credit to Paid-in Capital in Excess of Par Value, Common Stock.
D. A $1,800 debit to Legal Expenses.
E. A $1,800 credit to Cash.
114. A company issued 60 shares of $100 par value common stock for $7,000 cash. The total amount of paid-in capital is:
A. $ 100.
B. $ 600.
C. $1,000.
D. $6,000.
E. $7,000.
115. A company issued 60 shares of $100 par value common stock for $7,000 cash. The journal entry to record the issuance is:
A. Debit Cash $7,000; credit Common Stock $7,000.
B. Debit Investment in Common Stock $7,000; credit Cash $7,000.
C. Debit Cash $7,000; credit Common Stock $6,000; credit Paid-in Capital in Excess of Par Value, Common Stock $1,000.
D. Debit Common Stock $6,000, debit Investment in Common Stock $1,000; credit Cash $7,000.
E. Debit Cash $7,000; credit Paid-in Capital in Excess of Par Value, Common Stock $6,000, credit Common Stock $1,000.
116. A company issued 70 shares of $30 par value preferred stock for $4,000 cash. The journal entry to record the issuance is:
A. Debit Cash $2,100; credit Preferred Stock $2,100.
B. Debit Investment in Preferred Stock $2,100; credit Cash $2,100.
C. Debit Cash $4,000; credit Preferred Stock $4,000.
D. Debit Preferred Stock $2,100, debit Investment in Preferred Stock $1,900; credit Cash $4,000.
E. Debit Cash $4,000; credit Paid-in Capital in Excess of Par Value, Preferred Stock $1,900, credit Preferred Stock $2,100.
