Reference no: EM132597402
Questions -
Q1) If Dakota Company issues 1,500 shares of $6 par common stock for $75,000,
a. Paid-In Capital in Excess of Par will be credited for $66,000
b. Cash will be debited for $66,000
c. Paid-In Capital in Excess of Par will be credited for $9,000
d. Common Stock will be credited for $75,000
Q2) A corporation purchases 6,990 shares of its own $7 par common stock for $19 per share, recording it at cost. What will be the effect on total stockholders' equity?
a. decrease by $83,880
b. increase by $132,810
c. increase by $83,880
d. decrease by $132,810
Q3) On April 1, 12,000 shares of $6 par common stock were issued at $24, and on April 7, 4,000 shares of $60 par preferred stock were issued at $106.
Required: Journalize the entries for April 1 and 7. Refer to the Chart of Accounts for exact wording of account titles.
Q4) On April 2 a corporation purchased for cash 5,000 shares of its own $11 par common stock at $29 per share. It sold 3,000 of the treasury shares at $32 per share on June 10. The remaining 2000 shares were sold on November 10 for $25 per share.
a. Journalize the entries to record the purchase (treasury stock is recorded at cost).
b. Journalize the entries to record the sale of the stock. If an amount box does not require an entry, leave it blank.