Question : 18.4   Learning Objective 18-4 1) The journal entry for the receipt : 1177233

 

18.4   Learning Objective 18-4

 

1) The journal entry for the receipt of a cash payment on common stock subscriptions would include:

A) debiting Subscriptions Receivable-Common Stock ; crediting Common Stock.

B) debiting Common Stock; crediting Subscriptions Receivable-Common Stock.

C) debiting Cash; crediting Subscriptions Receivable-Common Stock.

D) debiting Cash; crediting Common Stock Subscribed.

 

2) The Bean Counter Corporation received subscriptions for 100 shares of its $10 par value common stock at $13 per share. The entry to record receipt of the subscriptions would include a:

A) debit to Cash $1,300 and a credit to Common Stock $1,300.

B) debit to Cash $1,300; a credit to Common Stock $1,000; and a credit to Paid-in Capital in Excess of Par $300.

C) debit to Common Stock Subscribed $1,300 and a credit to Subscriptions Receivable-Common Stock $1,300.

D) debit to Subscriptions Receivable-Common Stock $1,300; a credit to Common Stock Subscribed $1,000; and a credit to Paid-in Capital in Excess of Par for $300.

3) Diamonds Forever Corporation received subscriptions for 80 shares of its $100 par value common stock for $120 per share. The entry to record the receipt of the subscriptions would include a:

A) debit to Common Stock Subscribed for $9,600.

B) debit to Subscriptions Receivable-Common Stock for $8,000.

C) credit to Paid-in Capital in Excess of Par for $1,600.

D) credit to Common Stock to be Outstanding $8,000.

 

4) Tory Company received the first installment of $3,200 on a common stock subscription. The entry to record the collection would include a:

A) debit to Subscriptions Receivable-Common Stock for $3,200.

B) credit to Common Stock Subscribed for $2,500.

C) credit to Common Stock for $2,500.

D) credit to Subscriptions Receivable-Common Stock for $3,200.

 

5) Nature’s Honey Corporation received the final installment of $1,000 on a stock subscription for 20 shares of $100 par value common stock. After recording the cash receipt, the entry to issue the stock would include a:

A) debit to Paid-in Capital in Excess of Par for $2,000.

B) credit to Paid-in Capital in excess of Par for $2,000.

C) credit to Common Stock for $2,000.

D) credit to Organization Cost for $2,000.

6) Monarch Company reported Subscriptions Receivable-Common Stock of $1,500 and Common Stock Subscribed of $3,200 on its balance sheet. All the following are true except:

A) the amount previously collected on the stock subscriptions is $1,700.

B) the original stock subscribed totaled $3,200.

C) Monarch previously issued $1,700 of the subscribed stock.

D) the remaining amount to be collected from subscribers before the shares will be issued is $1,500.

 

7) What is the entry to record subscriptions received for 1,700 shares of $100 par value common stock at $130 per share?

A) Debit Common Stock Subscribed $221,000; credit Cash $221,000

B) Debit Subscriptions Receivable-Common Stock $221,000; credit Common Stock Subscribed $221,000

C) Debit Subscriptions Receivable-Common Stock $221,000; credit Common Stock $221,000

D) None of these answers are correct.

 

8) Common Stock Subscribed is:

A) shown as an equity account below Issued Common Stock.

B) contra-asset account.

C) a receivables account.

D) shown on the income statement as a revenue.

 

9) In the stockholders’ equity section of a balance sheet:

A) common stock goes first.

B) retained earnings goes first.

C) preferred stock goes first.

D) all paid-in capital goes first.

10) When a stock subscription is received, Common Stock subscribed is credited for the total par value.

 

 

 

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