Question Details

Which of the following represents the largest number of common shares



1. Simon Company issued 6,000 shares of its $5 par value common stock in payment of its
attorney's bill of $45,000. The bill was for services performed in helping the company
incorporate. Simon should record this transaction by debiting
a. Legal Expense for $30,000.
b. Legal Expense for $45,000.
c. Organization Expense for $30,000.
d. Organization Expense for $45,000.
2. 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.
3. Which of the following represents the largest number of common shares?
a. Treasury shares
b. Issued shares
c. Outstanding shares
d. Authorized shares
4. New Corp. issues 1,000 shares of $10 par value common stock at $14 per share. When
the transaction is recorded, credits are made to
a. Common Stock $10,000 and Paid-in Capital in Excess of Stated Value $4,000.
b. Common Stock $14,000.
c. Common Stock $10,000 and Paid-in Capital in Excess of Par Value $4,000.
d. Common Stock $10,000 and Retained Earnings $4,000.
5. If Kiner Company issues 1,000 shares of $5 par value common stock for $70,000, the
account
a. Common Stock will be credited for $5,000.
b. Paid-in Capital in Excess of Par Value will be credited for $5,000.
c. Paid-in Capital in Excess of Par Value will be credited for $70,000.
d. Cash will be debited for $65,000.




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