21) Buetters Company reports the following information at the fiscal year end of December 31, 2015:
Common Stock, $0.10 par value per share
|
$88 million
|
Paid-in Capital in Excess of Par—Common
|
700 million
|
Retained Earnings
|
800 million
|
Total Stockholders' Equity
|
$1,588 million
|
How many shares of common stock were sold?
A) 8.8 million
B) 88 million
C) 788 million
D) 880 million
22) A company sells 1,000,000 shares of $0.50 par value preferred stock. The selling price for the stock was $3,000,000. The stated dividend is $1 per share and the stock is cumulative. What journal entry is needed for the sale?
A) debit Cash $3 million and credit Preferred Stock $3,000,000
B) debit Cash $3 million, credit Preferred Stock $500,000 and credit Paid-in Capital in Excess of Par—Preferred $2.5 million
C) debit Cash $3 million and credit Paid-in Capital in Excess of Par—Preferred $3 million
D) debit Cash $3 million and credit Retained Earnings $3 million
23) What is the calculation to determine the number of outstanding shares of stock?
A) number of treasury stock shares plus number of issued shares
B) number of authorized shares minus number of issued shares
C) number of issued shares minus number of treasury shares
D) number of authorized shares minus treasury shares
24) Johnson Corporation had the following transactions:
1.Issued 7,000 shares of common stock with a stated value of $15 per share for $155,000.
2.Issued 3,000 shares of $100 par value preferred stock at $117 per share for cash.
Required:
Prepare the journal entries for the above transactions. Omit explanations.
25) During the month of February, B & B Builders, Inc. completed the following transactions related to its stock:
•February 2: Issued 3,000 shares of no-par, Class A common stock with a stated value of $1 for $15 cash per share.
•February 3: Issued 9,000 shares of no-par, Class B common stock with no stated value for $20 per share
•February 20: Issued 600 shares of $4 par value preferred stock for equipment with a fair market value of $5,000.
Required:
Prepare journal entries for the above transactions. Omit explanations.