Question : 11) The difference between the issue price of the stock : 1230042

 

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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