A company issued 700 shares of $2 par common stock in exchange for a piece of eq
ID: 2587407 • Letter: A
Question
A company issued 700 shares of $2 par common stock in exchange for a piece of equipment with a current market value of $24,000. Which of the following is the correct journal entry for this transaction?
A. Equipment 24,000
Common Stock 700
Paid - in Capital in Excess of Par - Common 23,300
B. Equipment 24,000
Common Stock 1,400
Paid - in Capital in Excess of Par - Common 22,600
C. Paid - in Capital in Excess of Par - Common 22,600
Common Stock 1,400
Equipment 24,000
D. Equipment 24,000
Common Stock 24,000
Caesar Corporation has 280,000 shares of $9 - par common stock outstanding. They have declared a 8% stock dividend. The current market price of the common stock is $14/share. The amount that will be credited to Paid - in Capital in Excess of Par Common Stock on the date of declaration is:
A. $515,200.
B. $112,000.
C. $201,600.
D. $313,600.
Explanation / Answer
1.
2.
Equipment $ 24,000 Common stock (700*$2) $ 1,400 Paid in capital in excess of par - Common $ 22,600Related Questions
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