Question :
76. The charter of a corporation provides for the issuance of : 1226703
76. The charter of a corporation provides for the issuance of 100,000 shares of common stock. Assume that 60,000 shares were originally issued and 10,000 were subsequently reacquired. What is the number of shares outstanding?
A. 40,000
B. 70,000
C. 50,000
D. 60,000
77. Par value
A. is the monetary value assigned per share in the corporate charter.
B. represents what a share of stock is worth.
C. represents the original selling price for a share of stock.
D. is established for a share of stock after it is issued.
78. The authorized stock of a corporation
A. must be recorded in a formal accounting entry.
B. only reflects the initial capital needs of the company.
C. is indicated in its by-laws.
D. is indicated in its charter.
79. If Everly Company issues 1,000 shares of $5 par value common stock for $75,000, the account
A. Common Stock will be credited for $75,000.
B. Paid-in Capital in excess of Par Value will be credited for $5,000.
C. Paid-in Capital in excess of Par Value will be credited for $70,000.
D. Cash will be debited for $70,000.
80. If common stock is issued for an amount greater than par value, the excess should be credited to
A. Retained Earnings.
B. Cash.
C. Legal Capital.
D. Paid-in Capital in Excess of Par Value.
81. The Sneed Corporation issues 10,000 shares of $50 par value preferred stock for cash at $70 per share. The entry to record the transaction will consist of a debit to Cash for $700,000 and a credit or credits to
A. Preferred Stock for $700,000.
B. Preferred stock for $500,000 and Paid-in Capital in Excess of Par Value—Preferred Stock for $200,000.
C. Preferred Stock for $500,000 and Retained Earnings for $200,000.
D. Paid-in Capital from Preferred Stock for $700,000.
82. Alma Corp. issues 1,000 shares of $10 par value common stock at $16 per share. When the transaction is recorded, credits are made to:
A. Common Stock $16,000.
B. Common Stock $10,000 and Paid-in Capital in Excess of Par Value $6,000.
C. Common Stock $10,000 and Paid-in Capital in Excess of Stated Value $6,000.
D. Common Stock $10,000 and Retained Earnings $6,000.
83. Nexis Corp. issues 1,000 shares of $15 par value common stock at $25 per share. When the transaction is recorded, credits are made to:
A. Common Stock $15,000 and Paid-in Capital in Excess of Par Value $10,000.
B. Common Stock $25,000 and Retained Earnings $15,000.
C. Common Stock $15,000 and Paid-in Capital in Excess of Stated Value $10,000.
D. Common Stock $25,000.
84. When Bayou Corporation was formed on January 1, 20xx, the corporate charter provided for 100,000 share of $10 par value common stock. The following transaction was among those engaged in by the corporation during its first month of operation: The corporation issued 9,000 shares of stock at a price of $23 per share.
The entry to record the above transaction would include a
A. debit to Cash for $90,000
B. credit to Common Stock for $207,000
C. credit to Paid in Capital in Excess of Par for $117,000
D. debit to Common Stock for $90,000
85. On January 1, 20xx, Swenson Corporation had 40,000 shares of $10 par value common stock issued and outstanding. All 40,000 shares had been issued in a prior period at $20.00 per share. On February 1, 20xx, Swenson purchased 2,000 shares of treasury stock for $24 per share and later sold the treasury shares for $21 per share on March 1, 20xx.
The journal entry to record the purchase of the treasury shares on February 1, 20xx, would include a
A. credit to Treasury Stock for $48,000.
B. debit to Treasury Stock for $48,000.
C. debit to a loss account for $6,000
D. credit to a gain account for $6,000.
or Waypoint 
.
