Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Need these 7 questions answered. 1. Abbie's Organics Corporation began business in 2014 by issuing 50,000 shares of $3 par common stock for $8 per

Need these 7 questions answered.image text in transcribed

1. Abbie's Organics Corporation began business in 2014 by issuing 50,000 shares of $3 par common stock for $8 per share and 20,000 shares of 6%, $10 par preferred stock for par. At year end, the common stock had a market value of $12. On its December 31, 2014 balance sheet, Carson Packaging would report. A. Common Stock of $150,000. B. Common Stock of $400,000. C. Common Stock of $600,000. D. Paid-In Capital of $150,000 2. The following data is available for Santos Service Corporation at December 31, 2014: Common stock, par $10 (authorized 100,000 shares) Treasury Stock (at cost $15 per share) $400,000 $27,000 Based on the data, how many shares of common stock are outstanding? A. 40,000 B. 49,880 C. 38,200 D. 50,000 3. Slater Roofing Company originally issued 6,000 shares of $10 par value common stock for $180,000 ($30 per share). Slater subsequently purchases 600 shares of treasury stock for $27 per share and resells the 600 shares of treasury stock for $29 per share. In the entry to record the sale of the treasury stock, there will be a A. debit to Paid-In Capital in Excess of Par of $18,000. B. credit to Common Stock for $16,200. C. credit to Paid-In Capital from Treasury Stock for $1,200. D. credit to Treasury Stock for $6,000. 4. Mountain View, Inc. has 50,000 shares of 8%, $100 par value, noncumulative preferred stock and 100,000 shares of $1 par value common stock outstanding at December 31, 2014. There were no dividends declared in 2013. The board of directors declares and pays a $500,000 dividend in 2014. What is the amount of dividends received by the common stockholders in 2014? A. $100,000 B. $500,000 C. $400,000 D. 0 5. Zyrkel Corporation's December 31, 2014 balance sheet showed the following: 8% preferred stock, $20 par value, cumulative, 30,000 shares authorized; 20,000 shares issued Common stock, $10 par value, 2,000,000 shares authorized; 1,950,000 shares issued, 1,920,000 shares outstanding Paid-in capital in excess of parpreferred stock Paid-in capital in excess of parcommon stock Retained earnings Treasury stock (30,000 shares) Zyrkel total paid-in capital was A. $46,330,000. B. $46,960,000. C. $27,060,000. D. $47,590,000. $400,000 19,500,000 60,000 27,000,000 7,500,000 630,000 6. VAS Corporation had net income of $500,000 and paid dividends of $800,000 to common stockholders and $20,000 to preferred stockholders in 2014. VAS Corporation's common stockholders' equity at the beginning and end of 2014 was $1,740,000 and $2,260,000, respectively. There are 200,000 weighted-average shares of common stock outstanding. VAS Corporation's return on common stockholders' equity was A. 10% B. 20% C. 24% D. 17.7% 7. The adjusted trial balance for Otam Corp. at the end of the current year, 2014, contained the following accounts. 5-year Bonds Payable 8% $1,500,000 Interest Payable 50,000 Premium on Bonds Payable 150,000 Notes Payable (3 mo.) 40,000 Notes Payable (5 yr.) 145,000 Mortgage Payable ($10,000 due currently) 300,000 Salaries and Wages Payable 18,000 Taxes Payable (due 3/15 of 2015) 25,000 The total long-term liabilities reported on the balance sheet are A. $1,945,000 B. $2,095,000. C. $1,935,000. D. $2,085,000

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

Fundamentals of Financial Accounting

Authors: Fred Phillips, Robert Libby, Patricia Libby, Brandy Mackintosh

5th Canadian edition

1259269868, 978-1259269868

More Books

Students also viewed these Accounting questions

Question

Why does time influence the controllability of costs and benefits?

Answered: 1 week ago

Question

Define failure. (p. 273)

Answered: 1 week ago

Question

5. Give examples of binary thinking.

Answered: 1 week ago