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Authorized common stock refers to the total number of shares

Authorized common stock refers to the total number of shares:

a.Outstanding.

b.Issued.

c.Issued and outstanding.

d.That can be issued.

 

 

56. Issued stock refers to the number of shares:

a.Outstanding plus treasury shares.

b.Authorized.

c.In the hand of stockholders.

d.That may be issued under state law.

 

 

57. Outstanding common stock refers to the total number of shares:

a.Issued.

b.Issued plus treasury stock.

c.Issued less treasury stock.

d.Authorized.

 

 

58. Outstanding common stock specifically refers to:

a.Stock that is performing well.

b.Stock that has been authorized for issuance.

c.Stock issued plus treasury stock.

d.Stock in the hands of stockholders.

 

 

59. The par value of shares issued is normally recorded in the:

a.Additional Paid-in Capital account.

b.Common Stock account.

c.Retained Earnings account.

d.Treasury Stock account.

 

 

60. The par value of common stock represents:

a.The amount received when the stock was issued.

b.The liquidation value of a share.

c.The market value of a share of stock.

d.The legal capital per share of stock assigned when the corporation was first established.

 

 

61. If a company issues 1,000 shares of $1 par value common stock for $20 per share, what would be the effect on the accounting equation?

a.

Increase assets and increase liabilities.

b.

Increase assets and increase revenue.

c.

Increase assets and increase stockholders’ equity.

d.

Increase assets and decrease stockholders’ equity.

 

 

62. When a company issues 25,000 shares of $1 par value common stock for $10 per share, the journal entry for this issuance would include:

a.

A debit to Cash for $25,000.

b.

A debit to Additional Paid-in Capital for $25,000.

c.

A credit to Common Stock for $250,000.

d.

A credit to Additional Paid-in Capital for $225,000.

 

 

63. Jade Jewelers issued 15,000 shares of $1 par value stock for $20 per share.  What is true about the journal entry to record the issuance?

a.

Credit Common Stock $300,000.

b.

Credit Cash $300,000.

c.

Credit Common Stock $15,000.

d.

Debit Additional Paid-In Capital $285,000.

 

 

64. South Beach Apparel issued 10,000 shares of $1 par value stock for $5 per share.  What is true about the journal entry to record the issuance?

a.

Debit Common Stock $10,000.

b.

Credit Cash $50,000.

c.

Credit Common Stock $50,000.

d.

Credit Additional Paid-In Capital $40,000.

Jan 27 2020 View more View Less

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