11) When 100 shares of $1 par value Common Stock are issued at $25 per share, Paid-in Capital in Excess of Par—Common will:
A) increase $100.
B) increase $2,500.
C) increase $2,400.
D) stay the same.
12) 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 of the asset.
B) book value of the asset.
C) par value of the stock.
D) fair value of the stock minus the par value of the stock.
13) Badger Corporation issued 5,000 shares of its $5 par value common stock in payment for attorney services billed at $40,000. Badger Corporation's stock has been actively trading at $8 per share. The journal entry for this transaction would include a:
A) debit to Legal Expense $25,000.
B) debit to Legal Expense $40,000.
C) credit to Common Stock $15,000.
D) credit to Common Stock $40,000.
14) Miller Corporation issued 5,000 shares of its $5 par value common stock in payment for attorney services billed at $40,000. Miller Corporation's stock has been actively trading at $8 per share. The journal entry for this transaction would include a:
A) credit to Paid-in Capital in Excess of Par—Common for $40,000.
B) credit to Paid-in Capital in Excess of Par—Common for $15,000.
C) credit to Cash for $40,000.
D) credit to Common Stock for $40,000.
15) 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, Additional Paid-in Capital, Retained Earnings.
C) Preferred Stock, Common Stock, Additional Paid-in Capital, Retained Earnings.
D) Retained Earnings, Common Stock, Paid-in Capital in Excess of Par—Common.
16) 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.
17) Apple Inc. issued 1 million shares of no-par common stock for $10 million. What journal entry is prepared?
A) debit Cash $10 million and credit Paid-in Capital in Excess of Par $10 million
B) debit Cash $10 million and credit Retained Earnings $10 million
C) debit Cash $10 million and credit Paid-in Capital in Excess of Stated Value $10 million
D) debit Cash $10 million and credit Common Stock $10 million
18) Paltrowski Company issued 1 million shares of $10 stated value common stock. The selling price was $40 per share. What journal entry is prepared?
A) debit Cash $40 million and credit Common Stock $40 million
B) debit Cash $40 million, credit Common Stock $10 million and credit Paid-in Capital in Excess of Par—Common $30 million
C) debit Cash $40 million, credit Common Stock $10 million and credit Paid-in Capital in Excess of Stated Value—Common $30 million
D) debit Cash $40 million and credit Retained Earnings $40 million
19) Lewandowski Company reports the following information at the fiscal year end of December 31, 2015:
Common Stock, $0.10 par value per share
|
$88 million
|
Paid-in Capital in Excess of Par—Common
|
700 million
|
Retained Earnings
|
800 million
|
Total Stockholders' Equity
|
$1,588 million
|
What is the total paid-in capital for this company at December 31, 2015?
A) $88 million
B) $788 million
C) $888 million
D) $1,588 million
20) Lisa Laskowski Company reports the following information at the fiscal year end of December 31, 2015:
Common Stock, $0.10 par value per share
|
$88 million
|
Paid-in Capital in Excess of Par—Common
|
700 million
|
Retained Earnings
|
800 million
|
Total Stockholders' Equity
|
$1,588 million
|
What was the average selling price for the common stock sold?
A) $0.088 per share
B) $0.10 per share
C) $0.895 per share
D) $1.805 per share