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  3. question 3 a. alliance corp. issues 1,950 shares o

Question 3 a. Alliance Corp. issues 1,950 shares of $11 par value common stock at...

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Accounting

  1. Question 3

a. Alliance Corp. issues 1,950 shares of $11 par value common stock at $18 per share. When the transaction is recorded, what credit entry or entries are made?

Select the correct answer:

  1. Common Stock $13,650 and Retained Earnings $21,450.
  2. Common Stock $21,450 and Paid-in Capital in Excess of Stated Value $13,650.
  3. Common Stock $35,100.
  4. Common Stock $21,450 and Paid-in Capital in Excess of Par Value $13,650.

b. The Dayton Corporation began the current year with a retained earnings balance of $19,363. During the year, the company corrected an error made in the prior year, which was a failure to record a depreciation expense of $2,087 on equipment. Also, during the current year, the company earned net income of $13,936 and declared cash dividends of $5,405. Compute the year end retained earnings balance.

Select the correct answer:

  1. $19,363
  2. $27,894
  3. $40,791
  4. $25,807

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