1. On January 1, 2021 DDD Company was authorized to issue 100,000 shares of $10 par value Common Stock . On January 15th, DDD issued 20,000 shares of Common Stock for $26. What would be the entry to record the shares authorized?

   		Debit Common Stock $1,000,000, Credit Cash $1,000,000
   		Debit Cash $520,000, Credit Common Stock $200,000 and Paid in Capital in Excess of Par $320,000
   		Debit Cash $320,000, Debit Paid in Capital in Excess of Par $200,000, Credit Common Stock $520,000
   		No entry required

3 points

QUESTION 22

1. What would be the entry to record the shares issued?

   		Debit Common Stock $1,000,000, Credit Cash $1,000,000
   		Debit Cash $520,000, Credit Common Stock $200,000 and Paid in Capital in Excess of Par $320,000
   		Debit Cash $320,000, Debit Paid in Capital in Excess of Par $200,000, Credit Common Stock $520,000
   		No entry required

3 points

QUESTION 23

1. What would be the effect on Stockholder's Equity when the stock is issued?

   		increased by $520,000.
   		decreased by $200,000.
   		increased by $320,000.
   		be unaffected by the event.

3 points

QUESTION 24

1. Please use the following information for questions 24, 25, and 26:

   On February 1, 2021 DDD Company was authorized to issue and 20,000 shares of 6%, $50 par value Preferred Stock. On February 15th, the company issued 3,000 for $80. What would be the entry to record the shares authorized?

   		Debit Preferred Stock $1,000,000, Credit Cash $1,000,000
   		Debit Cash $390,000, Credit Preferred Stock $150,000, Credit Paid in Capital in Excess of Par $240,000
   		Debit Cash $240,000, Credit Preferred Stock $150,000, Credit Paid in Capital in Excess of Par $90,000
   		No entry required

3 points

QUESTION 25

1. What would be the entry to record the shares issued?

   		Debit Preferred Stock $1,000,000, Credit Cash $1,000,000
   		Debit Cash $390,000, Credit Preferred Stock $150,000, Credit Paid in Capital in Excess of Par $240,000
   		Debit Cash $240,000, Credit Preferred Stock $150,000, Credit Paid in Capital in Excess of Par $90,000
   		No entry required

3 points

QUESTION 26

1. What would be the effect on Common Stock when the stock is issued?

   		increased by $1,000,000.
   		decreased by $240,000.
   		increased by $390,000.
   		be unaffected by the event.

3 points

QUESTION 27

1. Please use the following information for questions 27-28

   On September 1, 2021 DDD Company purchased 1,000 shares of the common stock, $10 par authorized and issued in transactions from questions 21-23 as treasury stock for $20. What would be the entry to record the shares purchased?

   		Debit Common Stock $1,000,000, Credit Cash $1,000,000
   		Debit Cash $520,000, Credit Common Stock $520,000
   		Debit Treasury Stock $20,000, Credit Cash $20,000
   		No entry required

3 points

QUESTION 28

1. What would be the effect on Stockholder's Equity when the stock is issued?

   		increased by $20,000.
   		decreased by $20,000.
   		decreased by $10,000.
   		be unaffected by the event.

3 points

QUESTION 29

1. What is the number of outstanding shares of common stock that DDD has after the shares are issued in questions 21-23 and purchase in questions 26-27?

   		23,000.
   		20,000.
   		22,000.
   		19,000.

3 points

QUESTION 30

1. Please use the following information for questions 30-32:

   On December 31, 2021 DDD Company declared a 6% preferred stock dividend and a $1.00 dividend on common stock to stockholders of record as of January 15, 2022 to be paid on January 30, 2022. Refer to transactions presented in questions 24 and 29 to determine the amount of outstanding shares of each class of stock.

   What would be the effect on Equity when the dividend is declared (December 31st)?

   		decrease by $19,000
   		decrease by $20,000
   		decrease by $28,000
   		unaffected by this event

3 points

QUESTION 31

1. What would be the effect on Cash on the date of record (January 15th)?

   		decrease by $19,000
   		decrease by $20,000
   		decrease by $28,000
   		unaffected by this event

3 points

QUESTION 32

1. What would be the effect on Cash on the date of payment (January 30th)?

   		decrease by $19,000
   		decrease by $20,000
   		decrease by $28,000
   		unaffected by this event

3 points

QUESTION 33

1. Using the information and results of transactions from questions 21-33

   prepare the Stockholders Equity section of the DDD Co Balance Sheet in the space below. The company had beginning balances in Cash of $100,000 and Retained Earnings of $100,000 at the beginning of the year.