Average issue price

1) Which of the following is included in the entry to record the issuance of 14,000 shares of $7 par value common stock at $21 per share cash? A) Cash is debited for $294,000. B) Common Stock is debited for $98,000. C) Common Stock is credited for $294,000. D) Paid-In Capital in Excess of Par—Common is debited for $196,000. 2) The following information is from the December 31, 2017 balance sheet of Lawson Corporation. Preferred Stock, $100 par Paid-In Capital in Excess of Par—Preferred Common Stock, $1 par Paid-In Capital in Excess of Par—Common Retained Earnings Total Stockholders' Equity $560,000 43,000 190,000 510,000 191,500 $1,494,500 What was the average issue price of the common stock shares? (Round your answer to the nearest cent.) A) $1.88 B) $1.00 C) $2.68 D) $3.68 3) Moretown, Inc. had the following transactions in 2017, its first year of operations: • Issued 31,000 shares of common stock. Stock has par value of $1.00 per share and was issued at $20.00 per share. • Earned net income of $70,000. • Paid no dividends. At the end of 2017, what is total stockholders' equity? A) $31,000 B) $690,000 C) $620,000 D) $70,000 4) When 1,000 shares of $3 stated value common stock is issued at $18 per share, ________. A) Common Stock — $3 Stated is credited for $18,000 B) the account titled Paid-In Capital in Excess of Stated is used to record the issue price of the stock C) the difference between the issue price and the stated value is credited to Paid-In Capital in Excess of Stated D) the accounting is exactly the same as the accounting for par value stock 5) On December 2, 2017, Ewell, Inc. purchases land. In payment for the land, Ewell, Inc. issues 6,000 shares of common stock with $6 par value. The land has been appraised at a market value of $430,000. Which of the following is included in the journal entry to record this transaction? A) debit Common Stock—$6 Par Value for $36,000 and debit Paid-In Capital in Excess of Par —Common $394,000 B) credit Common Stock—$6 Par Value for $36,000 and credit Paid-In Capital in Excess of Par—Common $394,000 C) credit Common Stock—$6 Par Value for $430,000 D) debit Cash $430,000 6) Osbourne, Inc. issued 60,000 shares of common stock in exchange for manufacturing equipment. The equipment has a fair value of $1,420,000. The stock has a par value of $0.05 per share. The journal entry to record this transaction includes a ________. A) debit to Cash for $14,170,000 B) credit to Gain on Sale of Common Stock for $1,480,000 C) credit to Paid-In Capital in Excess of Par—Common for $1,417,000 D) credit to Common Stock—$0.05 Par Value for $1,420,000 7) Orange Office Supply Corporation completed the following stock issuance transactions: Issued 5,000 shares of $4 stated value common stock for cash of Mar. 28 $20 per share Received merchandise inventory with a market value of $46,000 in exchange for 2,000 shares of the $4 stated value common May 1 stock. Issued 450 shares of 5%, $20 par value preferred stock for $50 May 14 per share Prepare the journal entries to record these transactions. Explanations are not required. 8) Define treasury stock and provide two reasons why a corporation would purchase treasury stock. 9) Treasury stock ________. A) decreases the number of shares issued B) increases the number of shares issued C) increases the number of shares outstanding D) decreases the number of shares outstanding 10) Assume the following information for Petra Sales, Inc.: • • • • Common Stock, $1.00 par, 232,000 shares issued, 186,000 shares outstanding Paid-In Capital in Excess of Par—Common: $1,770,000 Retained Earnings: $2,450,000 Treasury Stock: 26,000 shares purchased at $12 per share If Petra Sales purchases an additional 13,000 shares of treasury stock at $18 per share, what number of shares will be shown as issued and outstanding? A) 18 issued; 186,000 outstanding B) 219,000 issued;