chapter 14 key

# 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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