« previous next »

Author Question: Team Shirts issued 20,000 shares of stock for 20 per share. The par value of the stock was 1 per ... (Read 78 times)

chads108

  • Hero Member
  • *****
  • Posts: 507
on: Jul 5, 2018
Team Shirts issued 20,000 shares of stock for 20 per share. The par value of the stock was 1 per share. Calculate the value of capital stock and additional paid-in capital.
 
  A) capital stock 400,000; additional paid-in capital 0
  B) capital stock 380,000; additional paid-in capital 20,000
  C) capital stock 20,000; additional paid-in capital 380,000
  D) capital stock 0; additional paid-in capital 400,000

Question 2

Toys for Boys, Inc had prepaid insurance of 7,200 on January 1, 2011. This amount relates to a 12-month insurance policy purchased on July 1, 2010 for 14,400.
 
  On July 1, 2011, Toys for Boys purchased more insurance coverage by paying 9,000 for a new one-year policy. The company's year ends on December 31, 2011 and all adjustments for the whole year are made on that date so that financial statements can be prepared. What amount should appear on the December 31, 2011 balance sheet as prepaid insurance? What amount should be reported on the year ended December 31, 2011 income statement as insurance expense?
 
  What will be an ideal response?


mbcrismon

  • Sr. Member
  • ****
  • Posts: 328
Reply #1 on: Jul 5, 2018
Answer to Question 1

C

Answer to Question 2

Prepaid insurance at Dec. 31, 2011: 4,500 (=9,000/2)
Insurance expense for the year: 11,700 (=7,200+4,500)


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

A serious new warning has been established for pregnant women against taking ACE inhibitors during pregnancy. In the study, the risk of major birth defects in children whose mothers took ACE inhibitors during the first trimester was nearly three times higher than in children whose mothers didn't take ACE inhibitors. Physicians can prescribe alternative medications for pregnant women who have symptoms of high blood pressure.

Did you know?

Between 1999 and 2012, American adults with high total cholesterol decreased from 18.3% to 12.9%

Did you know?

According to the National Institute of Environmental Health Sciences, lung disease is the third leading killer in the United States, responsible for one in seven deaths. It is the leading cause of death among infants under the age of one year.

Did you know?

This year, an estimated 1.4 million Americans will have a new or recurrent heart attack.

Did you know?

Though methadone is often used to treat dependency on other opioids, the drug itself can be abused. Crushing or snorting methadone can achieve the opiate "rush" desired by addicts. Improper use such as these can lead to a dangerous dependency on methadone. This drug now accounts for nearly one-third of opioid-related deaths.

Parents who grew up in dual-earner families are more apt to share household tasks equally than those ... Parents who grew up in dual-earner families are more apt to share household tasks equally than those ...
Fraternal twins share about 50 percent of their segregating genes. Fraternal twins share about 50 percent of their segregating genes.
Share of Hours Worked by Education Level, 1940–2008 Share of Hours Worked by Education Level, 1940–2008
Share of Human Capital in Wages in Developing Countries Share of Human Capital in Wages in Developing Countries
ADHD (Stock photo) ADHD (Stock photo)
Daniel's Enterprises has a beta of 1.98 and a growth rate of 12 percent. The stock is ... Daniel's Enterprises has a beta of 1.98 and a growth rate of 12 percent. The stock is ...
Video: Labor and Childbirth - The Three Stages of Labor: Dilation, Expulsion & Placental مراحل الولادة

For a complete list of videos, visit our video library