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Iteru [2.4K]
3 years ago
14

On May 10, Monty Corp. issues 1,900 shares of $4 par value common stock for cash at $13 per share. Journalize the issuance of th

e stock. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Business
1 answer:
Oduvanchick [21]3 years ago
8 0

Answer:

May 10, 2020, 1,900 shares issued at $13

Dr Cash 24,700

    Cr Common stock 7,600

    Cr Additional paid in capital 17,100

The common stock account increases using the pay value as reference. For example, if the common stock account = $200,000 and the par value of the stocks = $4, then we know that the company has 50,000 common stocks outstanding.

If investors pay any amount over the stocks' par value, that amount must be reported as additional paid in capital, in this case for common stock.

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The journal entry to record the purchase of equipment for a $140 cash down payment and a balance of $480 due in 30 days would in
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Answer:

Option C. A debit to Equipment for $620, a credit to Cash for $140, and a credit to Accounts Payable for $480.

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Journal entry in nutshell is as under:

Dr Equipment $620

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Cr Accounts Payables  $480

7 0
3 years ago
The total fixed overhead variance is:a. the difference between actual and budgeted fixed overhead costs. b. the difference betwe
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