Questions from Accounting Principles

Q: Garb Inc. issues 5,000 shares of $100 par

Garb Inc. issues 5,000 shares of $100 par value preferred stock for cash at $130 per share. Journalize the issuance of the preferred stock.

Q: On July 1, Raney Corporation purchases 500 shares of its $

On July 1, Raney Corporation purchases 500 shares of its $5 par value common stock for the treasury at a cash price of $9 per share. On September 1, it sells 300 shares of the treasury stock for cash...

Q: Pine Corporation has the following accounts at December 31: Common Stock

Pine Corporation has the following accounts at December 31: Common Stock, $10 par, 5,000 shares issued, $50,000; Paid-in Capital in Excess of Par—Common Stock $30,000; Retained Earnings $45,000; and T...

Q: Greenwood Corporation has 80,000 shares of common stock outstanding.

Greenwood Corporation has 80,000 shares of common stock outstanding. It declares a $1 per share cash dividend on November 1 to stockholders of record on December 1. The dividend is paid on December 31...

Q: The balance sheet for Lauren Inc. shows the following: total

The balance sheet for Lauren Inc. shows the following: total paid-in capital and retained earnings $877,000, total stockholders’ equity $817,000, common stock issued 44,000 shares, and common stock ou...

Q: M. Bot Corporation has 10,000 shares of 8%,

M. Bot Corporation has 10,000 shares of 8%, $100 par value, cumulative preferred stock outstanding at December 31, 2020. No dividends were declared in 2018 or 2019. If M. Bot wants to pay $375,000 of...

Q: Langley Corporation has 50,000 shares of $10 par value

Langley Corporation has 50,000 shares of $10 par value common stock outstanding. It declares a 15% stock dividend on December 1 when the market price per share is $16. The dividend shares are issued o...

Q: Lance Kosinski and Matt Morrisen are considering a business venture. They

Lance Kosinski and Matt Morrisen are considering a business venture. They ask you to explain the advantages and disadvantages of the partnership form of organization.

Q: The stockholders’ equity section of Pretzer Corporation consists of common stock

The stockholders’ equity section of Pretzer Corporation consists of common stock ($10 par) $2,000,000 and retained earnings $500,000. A 10% stock dividend (20,000 shares) is declared when the market p...

Q: For the year ending December 31, 2020, Soto Inc.

For the year ending December 31, 2020, Soto Inc. reports net income $170,000 and cash dividends $85,000. Determine the balance in retained earnings at December 31, assuming the balance in retained ear...