Question Details

largest number of common shares





1.	Barton Company is a publicly held corporation whose $1 par value stock is actively traded at $32 per share. The company issued 3,000 shares of stock to acquire land recently advertised at $100,000. When recording this transaction, Barton Company will
a.	debit Land for $100,000.
b.	credit Common Stock for $96,000.
c.	debit Land for $96,000.
d.	credit Paid-In Capital in Excess of Par for $98,000.


	2.	Crain Company issued 2,000 shares of its $5 par value common stock in payment of its attorney's bill of $40,000. The bill was for services performed in helping the company incorporate. Crain should record this transaction by debiting
a.	Legal Expense for $10,000.
b.	Legal Expense for $40,000.
c.	Organization Expense for $10,000.
d.	Organization Expense for $40,000.



	3.	In the financial statements, organization costs appears
a.	immediately below Retained Earnings in the stockholders' equity section.
b.	in the income statement.
c.	as part of paid-in capital in the stockholders' equity section.
d.	as an intangible asset.



	4.	Which of the following represents the largest number of common shares?
a.	Treasury shares
b.	Issued shares
c.	Outstanding shares
d.	Authorized shares



	5.	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 $8,000.






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