Retained earning is Always equal to the amount of cash that the corporation has generated from operations.
A part of the paid-in capital of the corporation.
A part of the stockholders claim on the total assets of the corporation.
Closed at the end of each accounting period.
When stock is issued for legal services, the transaction is recorded by debiting Organization Expense for the
stated value of the stock.
par value of the stock.
market value of the stock.
book value of the stock.
If Vickers Company issues 4,000 shares of $5 par value common stock for $140,000,
a.
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Retained earning is
Always equal to the amount of cash that the corporation has generated from operations.
A part of the paid-in capital of the corporation.
A part of the stockholders’ claim on the total assets of the corporation.
Closed at the end of each accounting period.
When stock is issued for legal services, the transaction is recorded by debiting Organization Expense for the
stated value of the stock.
par value of the stock.
market value of the stock.
book value of the stock.
If Vickers Company issues 4,000 shares of $5 par value common stock for $140,000,
a. Common Stock will be credited for $140,000.
b. Paid-In Capital in Excess of Par will be credited for $20,000.
c. Paid-In Capital in Excess of Par will be credited for $120,000.
d. Cash will be debited for $120,000.
If common stock is issued for an amount greater than par value, the excess should be
credited to
a. Cash.
b. Retained Earnings.
c. Paid-in Capital in Excess of Par.
d. Legal Capital.
If stock is issued for a noncash asset, the asset should be recorded on the books of the
corporation at
a. fair value.
b. cost.
c. zero.
d. a nominal amount
If stock is issued for less than par value, the account
a. Paid-In Capital in Excess of Par is credited.
b. Paid-In Capital in Excess of Par is debited if a debit balance exists in the account.
c. Paid-In Capital in Excess of Par is debited if a credit balance exists in the account.
d. Retained Earnings is credited.
Which of the following represents the largest number of common shares?
a. Treasury shares
b. Issued shares
c. Outstanding shares
d. Authorized shares
New Corp. issues 2,000 shares of $10 par value common stock at $14 per share. When the transaction is recorded, credits are made to
a. Common Stock $20,000 and Paid-in Capital in Excess of Stated Value $8,000.
b. Common Stock $28,000.
c. Common Stock $20,000 and Paid-in Capital in Excess of Par $8,000.
d. Common Stock $20,000 and Retained Earnings
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