Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. Berlin Corporation was organized on January 1, 2018, with 400,000 no par value common shares authorized. During 2018, the corporation had the following share

1. Berlin Corporation was organized on January 1, 2018, with 400,000 no par value common shares authorized. During 2018, the corporation had the following share transactions:

Jan 5 Apr 6 Jun 8 Jul 28 Purchased 20,000 shares at $11 per share and cancelled them Dec 31Issued 20,000 shares at $18 per share

Jan 4 Mar 8 May 17 Jul 6 Aug 27

Issued 120,000 shares at $10 per share Issued 40,000 shares at $11 per share Purchased 15,000 shares at $12 per share and cancelled them Issued 30,000 shares at $13 per share Issued 10,000 shares at $14 per share

Issued 150,000 shares at $10 per share Issued 50,000 shares at $12 per share Issued 50,000 shares at $14 per share

What is the total amount of contributed surplus at December 31, 2018?

a)$ 0 b) $ 4,000 c) $ 20,000

d) $220,000

2. Rome Corp. was organized on January 1, 2018, with the following authorized share capital: 20,000 common shares, no par value 6,000, $.05, cumulative preferred shares, no par value

During 2018, the corporation issued 10,000 common shares for $350,000 and 5,000 preferred shares at $24 per share. On December 20, 2018, subscriptions for 1,000 preferred shares were taken at a purchase price of $30. These subscribed shares were paid for on January 2, 2019.

What should Rome report as total contributed capital on its December 31, 2018, balance sheet? a) $440,000 b) $450,000 c) $470,000

d) $500,000

Use the following information to answer questions 34.

Berne Ltd. was organized on January 1, 2018, with 300,000 no par value common shares authorized. During 2018, the corporation had the following share transactions:

3. The total amount in the Common Shares account at December 31, 2018 is a) $2,170,000. b) $2,016,250. c) $2,007,250.

d) $1,990,000.

4. The total amount of contributed surplus at December 31, 2018 is a) $ 0. b) $ 26,250. c) $153,750.

d) $180,000.

Use the following information to answer questions 56.

Prague Corp. is authorized to issue 400,000 no par value common shares. Subscribers agree to purchase shares at $15 per share with a 30% down payment.

5. Assume that subscribers agree to purchase 50,000 shares and make the required down payment. The journal entry to record receipt of the subscriptions includes a a) debit to Common Shares Subscribed for $750,000. b) credit to Common Shares Subscribed for $750,000.

c) credit to Common Shares for $225,000. d) credit to Subscriptions Receivable for $525,000.

6. The journal entry to record the issuance of the shares upon receipt of the final instalment includes a a) debit to Common Shares Subscribed for $750,000. b) credit to Common Shares for $525,000.

c) credit to Common Shares for $225,000. d) debit to Subscriptions Receivable for $525,000.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Medicare Recovery Audit Contractor Program A Survival Guide For Healthcare Providers

Authors: Duane C. Abbey

1st Edition

1439821003, 978-1439821008

More Books

Students also viewed these Accounting questions

Question

=+ (a) Prove Cantelli's inequality P[X-mzalso2+a2' G2 @0.

Answered: 1 week ago