Question : 107.A company has 500 shares of $50 par value preferred : 1258358

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.