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1.The following data is available for Jones Corporation at December 31, 2012: Co

ID: 2382210 • Letter: 1

Question

1.The following data is available for Jones Corporation at December 31, 2012:

Common stock, par $10 (authorized 40,000 shares) $300,000

Treasury Stock (at cost $15 per share) 1500

Based on the data, how many shares of common stock are outstanding?

a. 30,000

b. 40,000

c. 39,900

d. 29,900


2. The following data is available for Jones Corporation at December 31, 2012:

Common stock, par $10 (authorized 40,000 shares) $300,000

Treasury Stock (at cost $15 per share) $1500

Based on the data, how many shares of common stock have been issued?

a. 40,000

b. 30,000

c. 39,900

d. 29,900


3. Foster Company issued 500 shares of no-par common stock for $10,500. Which of the

following journal entries would be made if the stock has a stated value of $5 per share?

a. Cash 10,500

Common Stock 10,500


b. Cash 10,500

Common Stock 2,500

Paid-in Capital in Excess of Par 8,000


c. Cash 10,500

Common Stock 2,500

Paid-in Capital in Excess of Stated Value 8,000


d. Common Stock 10,500

Cash 10,500


4. Jarrett Company issued 600 shares of no-par common stock for $7,500. Which of the

following journal entries would be made if the stock has no stated value?

a. Cash 7,500

Common Stock 7,500


b. Cash 7,500

Common Stock 600

Paid-in Capital in Excess of Par 6,900


c. Cash 7,500

Common Stock 600

Paid-in Capital in Excess of Stated Value 6,900 Page | 2


d. Common Stock 7,500

Cash 7,500

Explanation / Answer

1)a. 30,000

2)b. 30,000

3)c. Cash 10,500

Common Stock 2,500

Paid-in Capital in Excess of Stated Value 8,000

4)a. Cash 7,500

Common Stock 7,500

5)c. $5,000

6)b. Edisons total stockholders equity was unaffected.

7)b. 40%

8)c. $2,300,000.

9)b. $1,464,000

10)b. $1,956,000

11)d. $323,600