77.If stock is issued for less than par value, the account
a.Paid-In Capital in Excess of Par is credited.
b.Paid-In Capital in Excess of Par is debited if a debit balance exists in the account.
c.Paid-In Capital in Excess of Par is debited if a credit balance exists in the account.
d.Retained Earnings is credited.
78.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 stockholders encourage.
d.requires that a liability be recorded for the difference between the sales price and the par value of the shares.
79.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.
80.A separate paid-in capital account is used to record each of the following except the issuance of
b.par value stock.
c.stated value stock.
d.treasury stock above cost.
81.Jackson Company is a publicly held corporation whose $1 par value stock is actively traded at $64 per share. The company issued 3,000 shares of stock to acquire land recently advertised at $200,000. When recording this transaction, Barton Company will
a.debit Land for $200,000.
b.credit Common Stock for $192,000.
c.debit Land for $192,000.
d.credit Paid-In Capital in Excess of Par for $196,000.
82.Sunshine Company issued 4,000 shares of its $5 par value common stock in payment of its attorney's bill of $80,000. The bill was for services performed in helping the company incorporate. Crain should record this transaction by debiting
a.Legal Expense for $20,000.
b.Legal Expense for $80,000.
c.Organization Expense for $20,000.
d.Organization Expense for $80,000.
83.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.
84.Which of the following represents the largest number of common shares?
85.Delta Corp. issues 4,000 shares of $10 par value common stock at $14 per share. When the transaction is recorded, credits are made to
a.Common Stock $40,000 and Paid-in Capital in Excess of Stated Value $16,000.
b.Common Stock $56,000.
c.Common Stock $40,000 and Paid-in Capital in Excess of Par $16,000.
d.Common Stock $40,000 and Retained Earnings $16,000.
86.If Merril Company issues 9,000 shares of $5 par value common stock for $160,000, the account
a.Common Stock will be credited for $45,000.
b.Paid-in Capital in Excess of Par will be credited for $45,000.
c.Paid-in Capital in Excess of Par will be credited for $160,000.
d.Cash will be debited for $115,000.