Acme Steel Inc. purchases 12,000 shares of its $5 par value common stock for $95,000 cash on July 1. It expects to hold the shares in the treasury until resold. Recorded journal entry for this transaction would be - *

a)Debit Treasury Stock $95,000 and Credit Common Stock $60,00 and Cash $ 35,000

b)Debit Treasury Stock $95,000 and Credit Cash $ 95,000

c)Debit Cash $95,000 and Credit Common Stock $250,000

d)Debit Common Stock $95,000 and Credit Treasury Stock $95,00

Acme Steel Inc issues 5,000 shares of $2 par value preferred stock for $5 cash per share. How much additional paid-in capital (APIC) will be recorded in the journal entry? *

A)$ 5000

B)$25,000

C)$ 10000

D)$ 15,000

Acme Steel Inc. begins operations on January 1 by issuing 50,000 shares of $5 par value common stock for cash at $15 per share. What will be the journal entry for this transaction *

A)Debit Cash $500,000 and Credit Common Stock $250,00 and APIC $ 250,000

B)Debit Cash $450,000 and Credit Common Stock $250,00 and APIC $ 200,000

C)Debit Cash $250,000 and Credit Common Stock $250,000

D)Debit Cash $750,000 and Credit Common Stock $250,00 and APIC $ 500,000

Acme Steel Inc. has 20,000 shares of 6%, $10 par value, cumulative preferred stock outstanding at December 31, 2020. No dividends were declared in 2018 or 2019. If Acme Steel Inc. wants to pay $60,000 of dividends in 2020, common stockholders will receive *

A)$ 72,000

B)$36,000

C)$ 24,000

D)$ 60,000

For Acme Steel Inc. to pay a cash dividend to its stockholders, it must meet all the following conditions except - *

A)Board of Directors must agree to pay the dividend and declare it

B)The stockholders must make an official request to the board of directors to declare the dividend

C)Have significant retained earnings

D)Have sufficient amount of cash reserve

The separation of ownership and management is an advantage of the corporate form of business. *

True

False