chapter 14 key - Chapter 14 Exercise 14-3(15 minutes 1...

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Chapter 14 Exercise 14-3 (15 minutes) 1. Organization Expenses ................................................. 40,000 Common Stock, No-Par Value ................................ 40,000 Issued stock to promoters. 2. Organization Expenses ................................................. 40,000 Common Stock, $1 Stated Value ............................ 2,000 Paid-In Capital in Excess of Stated Value, Common Stock ..................................................... 38,000 Issued stock to promoters. 3. Cash 35,000 Common Stock, $5 Par Value* ................................ 20,000 Paid-In Capital in Excess of Par Value, Common Stock** ................................................... 15,000 Issued common stock for cash. *4,000 shares x $5 per share = $20,000 **$35,000 - $20,000 = $15,000 4. Cash 60,000 Preferred Stock, $50 Par Value* ............................. 50,000 Paid-In Capital in Excess of Par Value, Preferred Stock** .................................................. 10,000 Issued preferred stock for cash. *1,000 shares x $50 per share = $50,000 **$60,000 - $50,000 = $10,000 Exercise 14-4 (15 minutes) Land ................................................................................. 45,000 Building ........................................................................... 85,000 Common Stock, $7 Par Value* ................................. 49,000 Paid-In Capital in Excess of Par Value, Common Stock ....................................................... 81,000 Issued stock for land and building. *7,000 shares x $7 per share = $49,000 **($45,000 + $85,000) – $49,000 = $81,000 Exercise 14-6 (20 minutes)
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1. a. Retained earnings Before dividend ................................................................... $ 660,000 $10 par value of 25,000 dividend shares .......................... (250,000 ) After dividend ...................................................................... $ 410,000 b. Total stockholders’ equity Common stock $10 par value, 120,000 shares authorized, 75,000 shares issued and outstanding ......
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