15) Bradley Corporation issued 10,000 shares of common stock on January 1, 2013. The stock has par value of $0.01 per share and was sold for cash at par. The journal entry to record this transaction would:
A) debit Cash $100 and credit Common stock $100.
B) credit Cash $10,000 and debit Common stock $10,000.
C) debit Paid-in capital $9,900,and credit Common stock $9,900.
D) debit Cash $10,000, credit Common stock $100, and credit Paid-in capital $9,900.
16) Bradley Corporation issued 10,000 shares of common stock on January 1, 2013. The stock has par value of $0.01 per share and was sold at $25 per share. The journal entry for this transaction would:
A) debit Cash $250,000, credit Paid-in capital $100, and credit Common stock $249,900.
B) credit Cash $250,000 and debit Paid-in capital $250,000.
C) credit Cash $250,000, debit Common stock $100, and debit Paid-in capital $249,900.
D) debit Cash $250,000, credit Common stock $100, and credit Paid-in capital $249,900.
17) Chaney Corporation issued 20,000 shares of common stock on January 1, 2014. The stock has par value of $1.00 per share and was sold at $30 per share. The journal entry for this transaction would:
A) credit Cash $600,000, debit Common stock $20,000, and debit Paid-in capital $580,000.
B) debit Cash $600,000 and credit Paid-in capital $600,000.
C) debit Cash $600,000, credit Common stock $20,000, and credit Paid-in capital $580,000.
D) debit Cash $600,000 and credit Common stock $600,000.
18) Dallkin Corporation issued 5,000 shares of common stock on January 1, 2013. The stock has no par value and was sold at $18 per share. The journal entry for this transaction would:
A) debit Cash $90,000 and credit Common stock $90,000.
B) debit Cash $90,000 and credit Paid-in capital $600,000.
C) credit Cash $90,000 and debit Common stock $90,000.
D) credit Cash $90,000, debit Paid-in capital $5,000, and debit Common stock $85,000.
19) On December 2, 2014, Ewell Company purchases a piece of land from the original owner. In payment for the land, Ewell Company issues 8,000 shares of common stock with $1.00 par value. The land has been appraised at a market value of $400,000. The journal entry to record this transaction would include which of the following items?
A) Debit Common stock $8,000 and debit Paid-in capital $392,000.
B) Credit Common stock $8,000 and credit Paid-in capital $392,000.
C) Credit Common stock $400,000.
D) Debit Cash $400,000.
20) Osbourne Company issued 50,000 shares of common stock in exchange for manufacturing equipment. The equipment was valued at $1,000,000. The stock has par value of $0.01 per share. The entry to record this transaction would include which of the following line items?
A) Debit Cash $5,000.
B) Credit Gain on sale of common stock $1,050,000.
C) Credit Paid-in capital $999,500.
D) Credit Common stock $1,000,000.
21) Peterson Company issued 4,000 shares of preferred stock for $240,000. The stock has a par value of $60 per share. The journal entry to record this transaction would:
A) credit Cash $240,000, debit Common stock $4,000, and debit Paid-in capital $236,000.
B) debit Cash $240,000, credit Common stock $4,000, and credit Paid-in capital $236,000.
C) credit Cash $240,000 and debit Preferred stock $240,000.
D) debit Cash $240,000 and credit Preferred stock $240,000.
22) Lerner Company had the following transactions in 2013, its first year of operations.
•Issued 20,000 shares of common stock. Stock has par value of $1.00 per share and was issued at $14.00
per share.
•Issued 1,000 shares of $100 par value preferred stock. Shares were issued at par.
•Earned net income of $35,000.
•Paid no dividends.
At the end of 2013, what is the total amount of Stockholders' equity?
A) $415,000
B) $120,000
C) $260,000
D) $380,000
23) Lerner Company had the following transactions in 2013, its first year of operations.
•Issued 20,000 shares of common stock. Stock has par value of $1.00 per share and was issued at $14.00
per share.
•Issued 1,000 shares of $100 par value preferred stock. Shares were issued at par.
•Earned net income of $35,000.
•Paid no dividends.
At the end of 2013, what is the total amount of Paid-in capital?
A) $415,000
B) $120,000
C) $280,000
D) $380,000
24) Moretown Company had the following transactions in 2014, its first year of operations.
•Issued 30,000 shares of common stock. Stock has par value of $1.00 per share and was issued at $18.00
per share.
•Earned net income of $70,000.
•Paid no dividends.
At the end of 2014, what is the total amount of Stockholders' equity?
A) $30,000
B) $610,000
C) $540,000
D) $70,000