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11 the difference between the issue price of the stock and the par value of the stoc 4298065

 

11) The difference between the issue price of the stock and the par value of the stock is:

A) market value.

B) par value.

C) additional paid-in capital.

D) preferred stock.

 

12) If a corporation issues 4,000 shares of $1 par value common stock for $8,000, the entry would include a credit to:

A) Common Stock for $8,000.

B) Paid-in Capital in Excess of Par for $8,000.

C) Common Stock for $4,000.

D) Paid-in Capital in Excess of Par for $4,000.

 

13) If a corporation issues 5,000 shares of $5 par value common stock for $95,000, the entry would include a credit to:

A) Common Stock for $95,000.

B) Paid-in Capital in Excess of Par for $95,000.

C) Common Stock for $70,000.

D) Paid-in Capital in Excess of Par for $70,000.

14) The entry to record common stock issued at its par value includes a:

A) debit to Retained Earnings.

B) debit to Common Stock.

C) credit to Retained Earnings.

D) credit to Common Stock.

 

15) When 100 shares of $1 par value Common Stock are issued at $25 per share, Paid-in Capital in Excess of Par value-Common Stock will:

A) increase $100.

B) increase $2,500.

C) increase $2,400.

D) stay the same.

 

16) If stock is issued for an asset other than cash, the asset should be recorded on the books of the corporation at:

A) fair market value.

B) cost.

C) par value of the stock.

D) zero.

 

17) Wolverine Corporation issued 5,000 shares of its $5 par value common stock in payment for attorney services of $40,000. Wolverine stock has been actively trading at $20 per share. This transaction would include a:

A) debit to Legal Expense $100,000.

B) debit to Legal Expense $40,000.

C) credit to Common Stock $100,000.

D) credit to Common Stock $40,000

18) Wolverine Corporation issued 5,000 shares of its $5 par value common stock in payment for attorney services of $40,000. Wolverine stock has been actively trading at $20 per share. This transaction would include a:

A) credit to Paid-in Capital in Excess of Par $40,000.

B) credit to Paid-in Capital in Excess of Par $15,000.

C) credit to Common Stock $100,000.

D) credit to Common Stock $40,000

 

19) When reporting stockholders' equity on the balance sheet, a corporation lists the accounts in the following order:

A) retained earnings, preferred stock, common stock.

B) common stock, preferred stock, retained earnings.

C) preferred stock, common stock, retained earnings.

D) retained earnings, common stock, paid-in capital in excess of par — common.

 

20) The number of shares of authorized stock of a corporation:

A) changes every time stock is sold.

B) is stated in the charter.

C) has no limit.

D) must be recorded as a journal entry.

21) Wilson Corporation had the following transactions:

1.Issued 7,000 shares of common stock with a stated value of $15 for $155,000.

2.Issued 3,000 shares of $100 par value preferred stock at $117 for cash.

 

 

22) During the month of February, B & B Builders, Inc. completed the following transactions related to its stock:

•February 2: Issued 3,000 shares of no-par common stock with a stated value of $1 for $15 cash per share.

•February 3: Issued 9,000 shares of no-par common stock with no stated value for $20 per share

•February 20: Issued 600 shares of $4 par value preferred stock for equipment with a fair market value of $5,000.

 

 

 

 

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