Question 1

The journal entry for the receipt of a cash payment on common stock subscriptions would include:

Accepted Answer

When a company receives a cash payment on common stock subscriptions, it increases its cash balance (debit Cash) and decreases its subscriptions receivable (credit Subscriptions Receivable-Common Stock), reflecting the receipt of cash from subscribers who have committed to purchase common stock.

Question 2

Journalize the transactions for the stock subscription plan for Poplar Company. On April 1, Poplar received subscriptions for 250 shares of $20 par value common stock at $26 per share. The buyer will pay two equal installments on May 1 and July 1. Assume all payments are made as scheduled and the company issues the stock after the July 1 collection.

Accepted Answer

The answer of Journalize the transactions for the stock subscription...

Question 3

Journalize the transactions for the stock subscription plan for Oro Company. On March 1, Oro received subscriptions for 120 shares of $15 par value common stock at $20 per share. The buyer will pay two equal installments on April 1 and July 1. Assume all payments are made as scheduled and the company issues the stock on August 1.

Accepted Answer

The answer of Journalize the transactions for the stock subscription...

Question 4

The account that is a current asset on balance sheet representing the amount due on stock subscriptions is:

Accepted Answer

Subscriptions Receivable-Common Stock is considered a current asset on the balance sheet because it represents the amount that is due to the company from subscribers for the purchase of its stock, but which has not yet been paid. This contrasts with the actual stock accounts (Common or Preferred Stock Subscribed), which represent equity rather than assets.

Question 5

Using the following accounts:
Indicate the account(s) to be debited and credited to record the following transaction.
-Sold preferred stock at a price above the par value.
Debit ________ Credit ________ & ________

Accepted Answer

The answer of Using the following accounts:
Indicate the account(s) to...

Question 6

Using the following accounts:
Indicate the account(s) to be debited and credited to record the following transaction.
-Exchanged common stock for services of corporation organizers (valued above par).
Debit ________ Credit ________ & ________

Accepted Answer

The answer of Using the following accounts:
Indicate the account(s) to...

Question 7

Using the following accounts:
Indicate the account(s) to be debited and credited to record the following transaction.
-Sold common stock at a price equal to the par value.
Debit ________ Credit ________

Accepted Answer

The answer of Using the following accounts:
Indicate the account(s) to...

Question 8

In the stockholders' equity section of a balance sheet:

Accepted Answer

Preferred stock is typically listed before common stock in the stockholders' equity section of a balance sheet because it has a higher claim on assets and earnings.

Question 9

Tory Company received the first installment of $2,400 on a common stock subscription. The entry to record the collection would include a:

Accepted Answer

The entry to record the collection of the first installment would include a credit to Subscriptions Receivable-Common Stock for $2,400, as this account is reduced when cash is received.

Question 10

Using the following accounts:
Indicate the account(s) to be debited and credited to record the following transaction.
-Exchanged common stock for services of corporation organizers (valued at par).
Debit ________ Credit ________

Accepted Answer

The answer of Using the following accounts:
Indicate the account(s) to...

Question 11

Common Stock Subscribed is:

Accepted Answer

Common Stock Subscribed is shown as an equity account below Issued Common Stock on the balance sheet. It represents a commitment by investors to purchase shares of common stock, indicating that the stock has been subscribed to but not yet issued.

Question 12

Prepare the journal entries for Blitz Industries:
April 6 Issued 9,000 shares of $112 par value common stock for $1150,000
April 15 Issued 54,000 shares of 58%, $1525 par value preferred stock for $13200,000
April 23 Issued 5,000 shares of $5 par common stock for $20,000 cash.

Accepted Answer

The answer of Prepare the journal entries for Blitz Industries:
April...

Question 13

Identify the account types used in recording transactions related to a stock subscription plan: Subscriptions Receivable-Common Stock; Common Stock Subscribed, Paid-In Capital in Excess of Par Value-Common, Common Stock, Cash. Also list the financial statement where the accounts are found.

Accepted Answer

The answer of Identify the account types used in recording...

Question 14

Using the following accounts:
Indicate the account(s) to be debited and credited to record the following transaction.
-Sold common stock at a price above the par value.
Debit ________ Credit ________ & ________

Accepted Answer

The answer of Using the following accounts:
Indicate the account(s) to...

Question 15

Using the following accounts:
Indicate the account(s) to be debited and credited to record the following transaction.
-Exchanged common stock for a building and land when the stock was selling at a discount.
Debit ________ & ________ & ________ Credit ________

Accepted Answer

The answer of Using the following accounts:
Indicate the account(s) to...

Question 16

Using the following accounts:
Indicate the account(s) to be debited and credited to record the following transaction.
-Sold common stock at a price less than the par value.
Debit ________ & ________ Credit ________

Accepted Answer

The answer of Using the following accounts:
Indicate the account(s) to...

Question 17

Elegant Corporation received subscriptions for 100 shares of its $105 par value common stock for $124 per share. The entry to record the receipt of the subscriptions would include a:

Accepted Answer

The answer of Elegant Corporation received subscriptions for 100 shares...

Question 18

The source of capital approach:

Accepted Answer

The source of capital approach organizes Paid-In Capital by categorizing it according to the different classes of stockholder sources of capital.

Question 19

Using the following accounts:
Indicate the account(s) to be debited and credited to record the following transaction.
-Exchanged preferred stock for a building when the stock was selling at a premium.
Debit ________ Credit ________ & ________

Accepted Answer

The answer of Using the following accounts:
Indicate the account(s) to...

Question 20

The journal entry to record the final installment from a common stock subscription is:

Accepted Answer

When the final installment from a common stock subscription is received, the company debits Cash (to increase cash for the amount received) and credits Subscriptions Receivable-Common Stock (to decrease the receivable since the installment has been paid).

Quiz 18: Corporations: Organizations and Stock

The journal entry for the receipt of a cash payment on common stock subscriptions would include:

The account that is a current asset on balance sheet representing the amount due on stock subscriptions is:

Using the following accounts: Indicate the account(s) to be debited and credited to record the following transaction. -Sold preferred stock at a price above the par value. Debit Credit &

Using the following accounts: Indicate the account(s) to be debited and credited to record the following transaction. -Exchanged common stock for services of corporation organizers (valued above par) . Debit Credit &

Using the following accounts: Indicate the account(s) to be debited and credited to record the following transaction. -Sold common stock at a price equal to the par value. Debit Credit

In the stockholders' equity section of a balance sheet:

Tory Company received the first installment of $2,400 on a common stock subscription. The entry to record the collection would include a:

Using the following accounts: Indicate the account(s) to be debited and credited to record the following transaction. -Exchanged common stock for services of corporation organizers (valued at par) . Debit Credit

Common Stock Subscribed is:

Prepare the journal entries for Blitz Industries: April 6 Issued 9,000 shares of $112 par value common stock for $1150,000 April 15 Issued 54,000 shares of 58%, $1525 par value preferred stock for $13200,000 April 23 Issued 5,000 shares of $5 par common stock for $20,000 cash.

Identify the account types used in recording transactions related to a stock subscription plan: Subscriptions Receivable-Common Stock; Common Stock Subscribed, Paid-In Capital in Excess of Par Value-Common, Common Stock, Cash. Also list the financial statement where the accounts are found.

Using the following accounts: Indicate the account(s) to be debited and credited to record the following transaction. -Sold common stock at a price above the par value. Debit Credit &

Using the following accounts: Indicate the account(s) to be debited and credited to record the following transaction. -Exchanged common stock for a building and land when the stock was selling at a discount. Debit & & Credit

Using the following accounts: Indicate the account(s) to be debited and credited to record the following transaction. -Sold common stock at a price less than the par value. Debit & Credit

Elegant Corporation received subscriptions for 100 shares of its $105 par value common stock for $124 per share. The entry to record the receipt of the subscriptions would include a:

The source of capital approach:

Using the following accounts: Indicate the account(s) to be debited and credited to record the following transaction. -Exchanged preferred stock for a building when the stock was selling at a premium. Debit Credit &

The journal entry to record the final installment from a common stock subscription is:

Quiz 18: Corporations: Organizations and Stock

The journal entry for the receipt of a cash payment on common stock subscriptions would include:

The account that is a current asset on balance sheet representing the amount due on stock subscriptions is:

Using the following accounts: Indicate the account(s) to be debited and credited to record the following transaction. -Sold preferred stock at a price above the par value. Debit ________ Credit ________ & ________

Using the following accounts: Indicate the account(s) to be debited and credited to record the following transaction. -Exchanged common stock for services of corporation organizers (valued above par) . Debit ________ Credit ________ & ________

Using the following accounts: Indicate the account(s) to be debited and credited to record the following transaction. -Sold common stock at a price equal to the par value. Debit ________ Credit ________

In the stockholders' equity section of a balance sheet:

Tory Company received the first installment of $2,400 on a common stock subscription. The entry to record the collection would include a:

Using the following accounts: Indicate the account(s) to be debited and credited to record the following transaction. -Exchanged common stock for services of corporation organizers (valued at par) . Debit ________ Credit ________

Common Stock Subscribed is:

Prepare the journal entries for Blitz Industries: April 6 Issued 9,000 shares of $112 par value common stock for $1150,000 April 15 Issued 54,000 shares of 58%, $1525 par value preferred stock for $13200,000 April 23 Issued 5,000 shares of $5 par common stock for $20,000 cash.

Identify the account types used in recording transactions related to a stock subscription plan: Subscriptions Receivable-Common Stock; Common Stock Subscribed, Paid-In Capital in Excess of Par Value-Common, Common Stock, Cash. Also list the financial statement where the accounts are found.

Using the following accounts: Indicate the account(s) to be debited and credited to record the following transaction. -Sold common stock at a price above the par value. Debit ________ Credit ________ & ________

Using the following accounts: Indicate the account(s) to be debited and credited to record the following transaction. -Exchanged common stock for a building and land when the stock was selling at a discount. Debit ________ & ________ & ________ Credit ________

Using the following accounts: Indicate the account(s) to be debited and credited to record the following transaction. -Sold common stock at a price less than the par value. Debit ________ & ________ Credit ________

Elegant Corporation received subscriptions for 100 shares of its $105 par value common stock for $124 per share. The entry to record the receipt of the subscriptions would include a:

The source of capital approach:

Using the following accounts: Indicate the account(s) to be debited and credited to record the following transaction. -Exchanged preferred stock for a building when the stock was selling at a premium. Debit ________ Credit ________ & ________

The journal entry to record the final installment from a common stock subscription is:

Using the following accounts: Indicate the account(s) to be debited and credited to record the following transaction. -Sold preferred stock at a price above the par value. Debit Credit &

Using the following accounts: Indicate the account(s) to be debited and credited to record the following transaction. -Exchanged common stock for services of corporation organizers (valued above par) . Debit Credit &

Using the following accounts: Indicate the account(s) to be debited and credited to record the following transaction. -Sold common stock at a price equal to the par value. Debit Credit

Using the following accounts: Indicate the account(s) to be debited and credited to record the following transaction. -Exchanged common stock for services of corporation organizers (valued at par) . Debit Credit

Using the following accounts: Indicate the account(s) to be debited and credited to record the following transaction. -Sold common stock at a price above the par value. Debit Credit &

Using the following accounts: Indicate the account(s) to be debited and credited to record the following transaction. -Exchanged common stock for a building and land when the stock was selling at a discount. Debit & & Credit

Using the following accounts: Indicate the account(s) to be debited and credited to record the following transaction. -Sold common stock at a price less than the par value. Debit & Credit

Using the following accounts: Indicate the account(s) to be debited and credited to record the following transaction. -Exchanged preferred stock for a building when the stock was selling at a premium. Debit Credit &