Questions from Intermediate Accounting

Q: Distinguish between common and preferred stock.

Distinguish between common and preferred stock.

Q: Why is the distinction between paid-in capital and retained earnings

Why is the distinction between paid-in capital and retained earnings important?

Q: Buttercup Corporation issued 300 shares of $10 par value common stock

Buttercup Corporation issued 300 shares of $10 par value common stock for $4,500. Prepare Buttercup’s journal entry.

Q: Swarten Corporation issued 600 shares of no-par common stock for

Swarten Corporation issued 600 shares of no-par common stock for $8,200. Prepare Swarten’s journal entry if (a) The stock has no stated value, and (b) The stock has a stated value of $2 per share.

Q: Wilco Corporation has the following account balances at December 31, 2012

Wilco Corporation has the following account balances at December 31, 2012. Common stock, $5 par value …………………………………………….. $ 510,000 Treasury stock …………………………………………………………………….. 90,000 Retained earnings...

Q: What is done to record properly a transaction involving the issuance of

What is done to record properly a transaction involving the issuance of a non-interest-bearing long-term note in exchange for property?

Q: Ravonette Corporation issued 300 shares of $10 par value common stock

Ravonette Corporation issued 300 shares of $10 par value common stock and 100 shares of $50 par value preferred stock for a lump sum of $13,500. The common stock has a market price of $20 per share, a...

Q: On February 1, 2012, Buffalo Corporation issued 3,000

On February 1, 2012, Buffalo Corporation issued 3,000 shares of its $5 par value common stock for land worth $31,000. Prepare the February 1, 2012, journal entry.

Q: Moonwalker Corporation issued 2,000 shares of its $10 par

Moonwalker Corporation issued 2,000 shares of its $10 par value common stock for $60,000. Moonwalker also incurred $1,500 of costs associated with issuing the stock. Prepare Moonwalker’s journal entry...

Q: Sprinkle Inc. has outstanding 10,000 shares of $10

Sprinkle Inc. has outstanding 10,000 shares of $10 par value common stock. On July 1, 2012, Sprinkle reacquired 100 shares at $87 per share. On September 1, Sprinkle reissued 60 shares at $90 per shar...