Problem 1: When the cash proceeds from a bond issued with detachable stock warrants exceeds the sum of the par value of the bonds and the fair market value of the warrants, the excess should be credited to
a. additional paid-in capital from stock warrants.
b. retained earnings.
c. a liability account.
d. premium on bonds payable.
Use the following information for questions below:
Presented below is information related to Fehr Corporation:
| Common Stock, $1 par |
$2,600,000 |
| Paid-in Capital in Excess of Par-Common Stock |
330,000 |
| Preferred 8 1/2% Stock, $50 par |
1,200,000 |
| Paid-in Capital in Excess of Par-Preferred Stock |
240,000 |
| Retained Earnings |
900,000 |
| Treasury Common Stock (at cost) |
90,000 |
Problem 2: The total stockholders' equity of Fehr Corporation is
a. $5,180,000
b. $5,270,000
c. $5,300,000
d. $5,510,000
Problem 3: The total paid-in capital (cash collected) related to the common stock is
a. $3,050,000
b. $2,930,000
c. $3,170,000
d. $2,810,000