Ranier Company is authorized to issue 10,000 shares of 8%, $100 par value preferred
stock and 500,000 shares of no-par common stock with a stated value of $1 per share. If
Ranier issues 5,000 shares of preferred stock for land with an asking price of $575,000
and a market value of $550,000, which of the following would be the journal entry for
Ranier to record?
Answer:
A company receives $371, of which $21 is for sales tax. The journal entry to record the
sale would include a
a debit to Sales Tax Expense for $21.
b. debit to Sales Taxes Payable for $21.
c. debit to Sales Revenue for $371.
d. debit to Cash for $371.
Answer:
Transactions are recorded in alphabetic order in a journal.
Answer:
A corporation’s own stock that has been reacquired by the corporation but not canceled
is called ___________________ and is deducted from total
_______________________ on the balance sheet.
Answer:
Notes payable usually are issued to meet long-term financing needs.
Answer:
Special journals are used to record unique transactions which do not occur very often.
Answer: