Questions from College Accounting


Q: Daily Corporation has outstanding 50,000 shares of $30 par

Daily Corporation has outstanding 50,000 shares of $30 par-value preferred stock, issued at an average price of $37 a share. The preferred stock is convertible into common stock at the rate of three s...

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Q: Juan Joseph, the owner of a sole proprietorship, is planning

Juan Joseph, the owner of a sole proprietorship, is planning to incorporate his business. His capital account has a balance of $480,000 after revaluation of the assets. His cash account totals $80,000...

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Q: Alway Company, a newly organized corporation, received a bill from

Alway Company, a newly organized corporation, received a bill from its lawyers for $10,000 for time spent in organizing the company. 1. How should these costs be treated in the financial reports? 2. H...

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Q: On January 2, 20X1, Cotton Inc. issued 50,

On January 2, 20X1, Cotton Inc. issued 50,000 shares of $10 par-value common stock and 10,000 shares of 5 percent, $100 par-value preferred stock for cash at par value. Prepare the entry in general jo...

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Q: On January 2, 20X1, BYU Corporation issued 5,000

On January 2, 20X1, BYU Corporation issued 5,000 shares of its $10 par-value common stock for cash at $12 a share. Prepare the entry in general journal form to record the issuance of the stock.

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Q: On January 2, 20X1, AC Company issued 50,000

On January 2, 20X1, AC Company issued 50,000 shares of its no-par-value common stock ($50 stated value) for cash at $51 a share. Give the entry in general journal form to record the issuance of the st...

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Q: When Sandra Michaels’s father took seriously ill suddenly, Sandra had just

When Sandra Michaels’s father took seriously ill suddenly, Sandra had just completed the semester in college, so she stepped in to run the family business, ASAP Couriers, until it co...

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Q: After all revenue and expense accounts, other than Income Tax Expense

After all revenue and expense accounts, other than Income Tax Expense, have been extended to the Income Statement section of the worksheet of US Trucks, Inc., the net income is determined to be $305,0...

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Q: The city of Springfield contributed to Orange Corporation a tract of land

The city of Springfield contributed to Orange Corporation a tract of land on which to build a plant. When the contribution was made on April 1, 20X1, the land’s appraised value was $350,000. Give the...

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Q: On March 31, 20X1, Alpha Corporation had outstanding 100,

On March 31, 20X1, Alpha Corporation had outstanding 100,000 shares of 5 percent preferred stock with a par value of $100. The stock was originally issued for $110 per share. On that date, the corpora...

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