Question Details

Paid-In Capital in Excess of Stated Value 



1. If stock is issued for less than par value, the account
a. Paid-In Capital in Excess of Par Value is credited.
b. Paid-In Capital in Excess of Par Value is debited if a debit balance exists in the
account.
c. Paid-In Capital in Excess of Par Value is debited if a credit balance exists in the
account.
d. Retained Earnings is credited.
2. The sale of common stock below par
a. is a common occurrence in most states.
b. is not permitted in most states.
c. is a practice that most shareholders encourage.
d. requires that a liability be recorded for the difference between the sales price and the
par value of the shares.
3. Paid-In Capital in Excess of Stated Value 
a. is credited when no-par stock does not have a stated value.
b. is reported as part of paid-in capital on the balance sheet.
c. represents the amount of legal capital.
d. normally has a debit balance.
4. A separate paid-in capital account is used to record each of the following except the
issuance of
a. no-par stock.
b. par value stock.
c. stated value stock.
d. treasury stock above cost.
5. Becker Company is a publicly held corporation whose $1 par value stock is actively traded
at $20 per share. The company issued 2,000 shares of stock to acquire land recently
advertised at $50,000. When recording this transaction, Becker Company will
a. debit Land for $50,000.
b. credit Common Stock for $40,000.
c. debit Land for $40,000.
d. credit Paid-In Capital in Excess of Par Value for $48,000.





Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Management Course Help