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Common Stock q1

The document provides sample test questions from an intermediate accounting test bank. It includes 5 multiple choice computational questions related to stockholders' equity, issuance of common and preferred stock for cash, and allocation of proceeds between common and preferred stock issued together. The questions assess understanding of concepts such as paid-in capital, par value, and allocation of proceeds between stock classes.

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Omnia Hassan
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233 views2 pages

Common Stock q1

The document provides sample test questions from an intermediate accounting test bank. It includes 5 multiple choice computational questions related to stockholders' equity, issuance of common and preferred stock for cash, and allocation of proceeds between common and preferred stock issued together. The questions assess understanding of concepts such as paid-in capital, par value, and allocation of proceeds between stock classes.

Uploaded by

Omnia Hassan
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15 - 16 Test Bank for Intermediate Accounting, Fourteenth Edition

MULTIPLE CHOICEComputational
Use the following information for questions 71 and 72.
Presented below is information related to Hale Corporation:
Common Stock, $1 par
Paid-in Capital in Excess of ParCommon Stock
Preferred 8 1/2% Stock, $50 par
Paid-in Capital in Excess of ParPreferred Stock
Retained Earnings
Treasury Common Stock (at cost)

$4,800,000
550,000
2,000,000
400,000
1,500,000
150,000

71.

The total stockholders' equity of Hale Corporation is


a. $9,100,000.
b. $9,250,000.
c. $7,600,000.
d. $7,750,000.

72.

The total paid-in capital (cash collected) related to the common stock is
a. $4,800,000.
b. $5,350,000.
c. $5,750,000.
d. $5,200,000.

73.

Manning Company issued 10,000 shares of its $5 par value common stock having a fair
value of $25 per share and 15,000 shares of its $15 par value preferred stock having a fair
value of $20 per share for a lump sum of $520,000. How much of the proceeds would be
allocated to the common stock?
a. $54,167
b. $236,364
c. $270,833
d. $276,250

74.

Norton Company issues 4,000 shares of its $5 par value common stock having a fair
value of $25 per share and 6,000 shares of its $15 par value preferred stock having a fair
value of $20 per share for a lump sum of $204,000. What amount of the proceeds should
be allocated to the preferred stock?
a. $182,750
b. $127,500
c. $111,273
d. $95,625

75.

Berry Corporation has 50,000 shares of $10 par common stock authorized. The following
transactions took place during 2012, the first year of the corporations existence:
Sold 10,000 shares of common stock for $18 per share.
Issued 10,000 shares of common stock in exchange for a patent valued at $200,000.
At the end of the Berrys first year, total paid-in capital amounted to
a. $80,000.
b. $180,000.
c. $200,000.
d. $380,000.

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