chapter 13

chapter 13 - CHAPTER 13 REVIEW: PART 1: A company with...

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CHAPTER 13 REVIEW: PART 1: A company with 100,000 authorized shares of $4 par common stock issued 40,000 shares at $8. Subsequently, the company declared a 4% stock dividend on a date when the market price was $12 a share. What is the amount transferred from the Retained Earnings account to Paid-in Capital accounts as a result of the stock dividend? $19,200. The ability of a corporation to obtain capital is enhanced because of limited liability and ease of share transferability. A corporation issues 2,000 shares of common stock for $ 32,000. The stock has a stated value of $10 per share. The journal entry to record the stock issuance would include a credit to Common Stock for $20,000. The Snow Corporation issues 10,000 shares of $50 par value preferred stock for cash at $60 per share. The entry to record the transaction will consist of a debit to Cash for $600,000 and a credit or credits to Preferred stock for $500,000 and Paid-in Capital in Excess of Par Value—Preferred Stock for $100,000. On January 1, 20xx, Sunshine Corporation had 40,000 shares of $10 par value
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This note was uploaded on 05/08/2011 for the course ACCT 2301 taught by Professor Moore,j during the Spring '08 term at HCCS.

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chapter 13 - CHAPTER 13 REVIEW: PART 1: A company with...

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