Quiz%201-1

Quiz%201-1 - Accounting 621 Liability and Equity Valuation...

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Spring 2010 Quiz # 1 1. Murphy Company issues 6,000 shares of its $5 par value common stock having a market value of $25 per share and 9,000 shares of its $15 par value preferred stock having a market value of $20 per share for a lump sum of $288,000. The proceeds allocated to the common stock is a. $30,000 b. $130,909 c. $150,000 d. $157,091 288,000 x 45% = $130,909 2. Zhang Co. was organized on January 2, 2010, with 500,000 authorized shares of $10 par value common stock. During 2010, Zhang had the following capital transactions: January 5—issued 375,000 shares at $14 per share. July 27—purchased 25,000 shares at $11 per share. November 25—sold 15,000 shares of treasury stock at $13 per share. Zhang used the cost method to record the purchase of the treasury shares. What would be the balance in the Paid-in Capital from Treasury Stock account at December 31, 2010? a. $0. b. $15,000. c.
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Quiz%201-1 - Accounting 621 Liability and Equity Valuation...

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