ACC 291- ABS Corp. received subscriptions for 45,200 shares of $75 par value common stock at $105 per share

Question

ACC 291- ABS Corp. received subscriptions for 45,200 shares of $75 par value common stock at $105 per share

Question # 00137124 Posted By: jia_andy Updated on: 11/20/2015 02:23 PM Due on: 03/11/2016

Subject Accounting Topic Accounting Tutorials:

Question

ACC 291

Week 3 Quiz

1. ABS Corp. received subscriptions for 45,200 shares of $75 par value common stock at $105 pershare. ABS required an initial payment of 35% of the subscription price. Points 1

a) Record the journal entry for the initial transaction

b) What is the journal entry at the time of the final payment

2. ABC Corp. issued 20,000 shares of $5 par common stock at $10 per share. On December 31,2004 ABC's retained earnings were $300,000. In March 2005, ABC sold 1,000 of these shares toits corporate officers for $25 per share. ABC uses the Cost method to record treasury stock. NetIncome for the year ended December 31, 2005, was $60,000. At December 31,2005 whatamount should ABC report as retained earnings? Points 1

3. DEFCo. was organized on January 2, 2005 with 30,000 authorized shares of $10 par value

common stock. During 2005, the corporation had the following transactions:• January 5 - issued 20,000 shares at $15 per share• July 14 - purchased 5,000 shares at $17 per share• December 27 - reissued the 5,000 shares held in treasury at $20 per shareDEF used the Par Value Method to record the purchase and reissuance of the treasury shares. Inits December 31,2005 balance sheet, what amount should DEF report as APIC? Points 1

4. Knight Corp. holds 20,000 shares of its $10 par value common stock as treasury stock reacquired

in 200 for $240,000. On December 12,2005, Knight reissued all 20,000 shares for $380,000.Under the Cost Method of accounting for treasury stock, the reissue resulted in a credit to:Points 1

5. On June 27,2005 Brite Co. distributed to its common stockholders 100,000 outstandingcommon shares of its investment in Quick Inc., an unrelated party. The carrying amount onBrite's book of Quick's $1 par common stock was $2 per share. Immediately after thedistribution the market price of Quick's stock was $2.50 per share. In its Incomes Statement forthe year ended June 30, 2005, what amount should Brite report as gain before income taxes ondisposal of the stock? Points 1

6. Record the initial sale ant Treasury Stock transaction using both the Cost and Par ValueMethod. Points 2100 shares ($50 par value) are originally sold at $60, reacquired at $70 and subsequently resoldat $75.

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