Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

16-20 Any balance in an unearned revenue account is reported as a(n) current liability long-term debt revenue unearned liability If stock is issued for less

16-20

Any balance in an unearned revenue account is reported as a(n)

current liability

long-term debt

revenue

unearned liability

If stock is issued for less than par value, the account

Paid-In Capital in Excess of Par Value is credited.

Paid-In Capital in Excess of Par Value is debited if a debit balance exists in the account

Paid-In Capital in Excess of Par Value is debited if a credit balance exists in the account.

Retained Earnings is credited

On October 1, Jerry's Carpet Service borrows $250,000 from First National Bank on a 3-month, $250,000, 8% note. The entry by Jerry's Carpet Service to record payment of the note and accrued interest on January 1 is

Notes Payable debit 255,000 Cash credit 255,000

Notes Payable debit 250,000 Interest Payable debit 5,000 Cash credit 255,000

Notes Payable debit 250,000 Interest Payable debit 20,000 Cash credit 270,000

Notes Payable debit 250,000 Interest Expense debit 5,000 Cash credit 255,000

On January 31, Exploration Co. reaquired 22,500 shares of its common stock at $31 per share. On April 20, the company sold 12,800 of the reacquired shares at $40 per share. On October 4, the company sold the remaining shares at $28 per share. What is the journal entry for October 4?

Debit cash 270,400; Debit Paid in capital treasury stock $29,100; Credit treasury stock 299,500.

Debit cash 271,600; Debit Paid in capital treasury stock $29,100; Credit treasury stock 300,700.

Debit cash 512,000; Credit Paid in capital treasury stock $396,800; Credit treasury stock $115,200.

Debit cash 697,500; Credit Paid in capital treasury stock $115,200; Credit treasury stock $582,300.

A stock split is a process by which a corporation reduces the par or stated value of its common stock and issues a proprotionate numer of additional shares.

True

False

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_2

Step: 3

blur-text-image_3

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 Audit Process Principles Practice And Cases

Authors: Stuart Manson, Iain Gray, Iain G. Sheffield, I.H. Gray, I. Etal Gray

2nd Edition

1861520107, 9781861520104

More Books

Students also viewed these Accounting questions