Question : 6) Organization costs are: A) part of the company’s start-up and : 1177240

 

6) Organization costs are:

A) part of the company’s start-up and are listed as expenses.

B) listed as an intangible asset on the balance sheet.

C) a current asset on the balance sheet.

D) another expense on the income statement.

 

7) Revenue earned by the business was recorded as additional paid-in capital. This error would cause:

A) the period’s net income to be understated.

B) the period’s net income to be overstated.

C) the period end assets to be overstated.

D) None of these are correct.

8) Common stock was sold in excess of par; the excess was credited to Sales. This error would cause:

A) the period’s net income to be understated.

B) the period’s net income to be overstated.

C) the period end assets to be overstated.

D) None of these are correct.

 

9) No entry was recorded for the exchange of stock for land. This error would cause:

A) the period end stockholders’ equity to be understated.

B) the period end stockholders’ equity to be overstated.

C) the period’s net income to be understated.

D) Both A and C are correct.

 

10) RH Corporation Stockholders’ Equity section includes the following information:

 

Preferred Stock

$ 11,000

Paid-in Capital in Excess of Par-Preferred

17,000

Common Stock

16,000

Paid-in Capital in Excess of Par-Common

4,000

Retained Earnings

7,000

 

Total paid-in capital is:

A) $48,000.

B) $55,000.

C) $27,000.

D) $21,000.

11) The Zonga Corporation Stockholders’ Equity section includes the following:

 

Preferred Stock

$ 22,000

Common Stock

48,000

Paid-in Capital in Excess of Par-Preferred

2,980

Paid-in Capital in Excess of Par-Common

3,400

Retained Earnings

7,350

 

Total paid-in capital is:

A) $83,730.

B) $76,380.

C) $70,000.

D) $77,350.

 

12) The Collins Corporation Stockholders’ Equity section includes the following:

 

Preferred Stock

$ 12,000

Common Stock

15,000

Paid-in Capital in Excess of Par-Preferred

2,700

Paid-in Capital in Excess of Par-Common

4,100

Retained Earnings

8,200

 

What was the total amount preferred stock was sold for?

A) $12,000

B) $14,700

C) $16,100

D) $20,200

13) The TM Stockholders’ Equity section includes the following:

 

Preferred Stock

$ 3,800

Common Stock

7,700

Paid-in Capital in Excess of Par-Preferred

400

Paid-in Capital in Excess of Par-Common

2,250

Retained Earnings

6,000

 

What was the total amount common stock was sold for?

A) $7,700

B) $13,700

C) $11,500

D) $9,950

 

14) The Harvester Corporation issued 40 shares of $20 par value stock to its accountant. The shares are in full payment for her $900 fee for assistance in setting up the new company. The entry to record the issuance of the stock would include a:

A) credit to Common Stock for $900.

B) debit to Common Stock for $900.

C) credit to Common Stock for $800.

D) debit to Common Stock for $800.

 

15) In exchange for $1,500 legal services to help set up the new company, Hickory Grove Corporation issued 100 shares of $10 par value stock to its attorney. The entry to record the issuance of the stock would include a:

A) credit to Common Stock for $1,000.

B) debit to Common Stock for $1,000.

C) credit to Common Stock for $1,500.

D) debit to Paid-in Capital in Excess of Par Value for $500.