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.
