Chapter 15 STOCKHOLDERS’ EQUITY

Chapter 15 STOCKHOLDERS’ EQUITY - Chapter 15:...

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Chapter 15: STOCKHOLDERS’ EQUITY 1. A corporation was organized in January 2004 with authorized capital of $10 par value common stock. On February 1, 2007, shares were issued at par for cash. On March 1, 2007, the corporation's attorney accepted 7,000 shares of common stock in settlement for legal services with a fair value of $90,000. Additional paid-in capital would increase on February 1, 2007 March 1, 2007 a. Yes No b. Yes Yes c. No No d. No Yes 2. On July 1, 2007, Cole Co. issued 2,500 shares of its $10 par common stock and 5,000 shares of its $10 par convertible preferred stock for a lump sum of $125,000. At this date Cole's common stock was selling for $24 per share and the convertible preferred stock for $18 per share. The amount of the proceeds allocated to Cole's preferred stock should be a. $62,500. b. $75,000. c. $90,000. d. $68,750. 3. Norton Co. was organized on January 2, 2007, with 500,000 authorized shares of $10 par value common stock. During 2007, Norton 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.
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This note was uploaded on 08/22/2010 for the course ACC accounting taught by Professor Dr.johnwilson during the Spring '09 term at University of Florida.

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Chapter 15 STOCKHOLDERS’ EQUITY - Chapter 15:...

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