Review for exam

A bond is issued at a ----------- when the issue price is greater than the face value.

A bond is issued at a ---------- when the issue price is less than the face value.

--------- stock reports shares that were previously issued to and owned by stockholders but have been reacquired and are now held by the corporation.

The company issues 1,000 shares of its $1 par value common stock at the market price of $30 per share.

Which of the following is the appropriate journal entry?

• Dr: cash for 30000

  Cr: common stock for 29000

  Cr: APIC for 1000

• Dr: cash for 30000

  Cr: common stock for 1000

  Cr: APIC for 29000

• Dr: cash for 30000

  Cr: common stock for 30000

• Dr: common stock for 30000

  Cr: cash for 30000

Does the stock exchange between investors (in the secondary market) directly affect the company?

• Yes, it does

• no, it does not

A company repurchased 10,000 shares of its stock for $65 per share; the effects are recorded using the cost method. What is the appropriate journal entry?

The company reissues 1,000 shares of treasury stock for $70 per share

(shares were previously acquired for $65 per share).

Record the appropriate journal entry

The company reissues another 2,000 shares of treasury stock for $75 per share

(shares were previously acquired for $65 per share).

Record the appropriate journal entry.

What is the remaining treasury stock balance (after the last two slides)?

Record Journal entries (if needed) for the following dates of the distribution of a dividend

Declaration date:

Record date:

Payment date: