This Question: 3 pts 31 of 35 (2 complete) This Test: 100 pts possible oh On Dec

Question

This Question: 3 pts 31 of 35 (2 complete) This Test: 100 pts possible oh On December 2, 2018, Eshares, Inc. purchases land. In payment for the land, Eshares, Inc, issues 6,000 shares of common stock with $4 par value. The land has been appraised at a market value o$410,000. Which of the following is included in the journal entry to record this transaction? O A debit Common Stock- $4 Par Value for $24,000 and debit Paid- In Capital in Excess of Par Common $386,000 O B. credit Common Stock-$4 Par Vakue for $410,000 O C. credit Common Stock-$4 Par Value for $24,000 and credit Paid-In Capital in Excess of Par- Common $386,000 O D. debit Cash $410,000

Explanation / Answer

Solution 31:

The journal entry would include "Credit common stock - $4 par value for $24,000 and Credit Paid in capital in excess of par - Common $386,000"

Hence option c is correct.

Solution 32:

Hence option c is correct.

Solution 33:

The true statement is "The bond will be issued at an amount above face value."

Hence option c is correct.

Solution 34:

$15,000 would be shown as a negative cash flow in the investing activites section. Hence option B is correct.

Solution 35:

Present value of ordinary annuity = $13,000 * cumulative PV factor at 7% for 15 periods

= $13,000 * 9.108 = $118,404

Hence option A is correct.

Journal entries Particulars Debit Credit Cash Dr $390,000.00       To Preferred stock $390,000.00

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