Transaction 4A – Jan. 1, Y5: To expand operations, Jensen Corporation issued 20,
ID: 2464694 • Letter: T
Question
Transaction 4A – Jan. 1, Y5: To expand operations, Jensen Corporation issued 20,000 shares of previously unissued stock with a par value of $2. The selling price for the stock was $10 per share. Give journal entries to record the sale of this stock.
Q31. Indicate the account title to be debited by $200,000.
A. Accounts Receivable B. Cash C. Common Stock
D. Paid-in Capital in Excess of Par E. Retained Earnings
Q32. Indicate the account title to be credited by $40,000.
A. Accounts Receivable B. Cash C. Common Stock
D. Paid-in Capital in Excess of Par E. Treasury Stock
Q33. Indicate the account title to be credited by $160,000.
A. Accounts Payable B. Cash C. Common Stock
D. Paid-in Capital in Excess of Par E. Treasury Stock
Transaction 4B – Sept. 1, Y5: Jensen Corporation purchased in the open market 100 shares of the company’s own common stock at $25 cash per share. Give journal entries to record this transaction.
Q34. Indicate the account title to be debited by $2,500
A. Accounts Receivable B. Cash C. Common Stock
D. Treasury Stock E. None
Q35. Indicate the account title to be credited by $2,500
A. Accounts Receivable B. Cash C. Retained Earnings
D. Treasury Stock E. None
Transaction 4C – Dec. 31, Y6: Jensen Corporation has 300,000 shares of common stock authorized, 250,000 shares issued, and 30,000 shares of treasury stock. The company’s board of directors declares a dividend of $1 dollar per share.
Q36. What is the total amount of the dividend that will be paid?
A. $30,000 B. $220,000 C. $250,000 D. $270,000 E. $300,000
Explanation / Answer
Q.31 - Option B.Cash is the answer.
Q.32 - Option C. Common Stock is the answer.
Q.33 - Option D. Paid-in Capital in Excess of Par is the answer.
Q.34 - Option D. Treasury Stock is the answer.
Q.35 - Option B. Cash is the answer.
Q.36 - Option E. $300,000 is the answer.
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