Assignment Chapter 13
I. Problems
1) Hayat Corporation issued 10,000 shares of $5 par value stock for land. The stock is actively traded at $8 per
share. The land was advertised for sale at $100,000. Calculate the amount of the land should be recorded?
2) ABC Corporation issues 1,000 shares of $5 par value common stock at $8 per share. Journalize this transaction?
3) Hayat Corporation purchased from its stockholders 10,000 shares of its own previously issued stock for
$100,000. It later resold 5,000 shares for $12 per share, then 3,000 more shares for $8 per share, and finally
2,000 shares for $6 per share. Prepare journal entries for the purchase of the treasury stock and the sales of
treasury stock?
II.
Match the following key terms with their corresponding meanings
a)
Preferred stock
1. (
) The amount per share assigned by the board of directors to no-par
value stock.
b)
Paid-in capital
2. (
) A corporation’s own stock that has been issued and subsequently
reacquired from shareholders by the corporation but not retired.
c)
Outstanding stock
3. (
) Net income that the corporation retains for future use.
d)
Par value stock
4. (
) The amount of stock that a corporation is authorized to sell as
indicated in its charter.
e)
Authorized stock
5. (
) Capital stock that has been assigned a value per share in the
corporate charter..
f)
Retained earnings
6. (
) Capital stock that has been issued and is being held by
stockholders.
g)
Treasury stock
7. (
) Total amount of cash and other assets paid in to the corporation
by stockholders in exchange for capital stock.
h)
Stated value
8. (
) Capital stock that has some preferences over common stock.