15. If the stock of a corporation sells at a premium, how would you enter the amount received above par? To what account would you transfer the premium when closing the books? 16. What would be the entries in the stock books to record the transactions shown in questions 12 and 14? 17. A promoter organizes a corporation to develope a mine, receiving as his fee $50,000.00 in stock. What are the entries on the books of the corporation? 18. The profits of a corporation with a paid up capital of $200,000.00, are $18,750.00. The directors declare a cash dividend of 6%, and create a special surplus fund of $5,000.00. Make all necessary entries. 19. The losses of the above corporation during the following year were $2,750.00. Make proper entries, with full explanations. 20. The accumulated surplus of a corporation capitalized at $1,000,000.00, with a paid up capital of $600,000.00, is $110,000.00; the current profits are $100,000.00. The directors declare a cash dividend of 7%, and a stock dividend of 25%. Make all entries to record these transactions on the general books of the corporation. 21. The following statistics are taken from the books of a corporation: Capital Stock $300,000.00 Merchandise Inventory 97,600.00 Machinery 110,800.00 Undivided Profits 600.00 Profit and Loss (Credit) 31,210.00 It is desired to set aside a special surplus fund as a machinery depreciation reserve, the depreciation being figured at 10% a year, and to pay a dividend of 6%. What entries are necessary? 22. Parsons, Young, and Searles are partners and decide to form a corporation with capital stock of $40,000.00, which is to be issued as full paid stock in exchange for their present business. Each partner is to receive stock in proportion to his interest in the present business. The balance sheet of the partnership is as follows: ASSETS Cash $3,500.00 Bills Receivable 6,000.00 Accounts Receivable 6,500.00 Merchandise 14,000.00 ---------- Total $30,000.00 LIABILITIES Bills Payable 4,000.00 Accounts Payable 2,000.00 Parsons 10,000.00 Young 8,000.00 Searles 6,000.00 ---------- Total 30,000.00 Make entries on books of the partnership. Make entries on books of the corporation. 23. Hoadley and Stockton are partners and desire to incorporate a company. The stock is to be divided equally between Hoadley and Stockton after giving Hopper $1,000.00. The balance sheet of the partnership is as follows: ASSETS