1. A corporation was organized in January 2004 with authorized capital of $10
common stock. On February 1, 2007, shares were issued at par for cash. On
March 1, 2007, the corporation's attorney accepted 7,000 shares of common stock in
settlement for legal services with a
of $90,000. Additional paid-in capital would
February 1, 2007
March 1, 2007
a. Yes No
b. Yes Yes
c. No No
d. No Yes
2. On July 1, 2007, Cole Co. issued 2,500 shares of its $10 par common stock
and 5,000 shares of its $10 par convertible preferred stock for a lump sum of $125,000.
At this date Cole's common stock was selling for $24 per share and the convertible
preferred stock for $18 per share. The amount of the proceeds allocated to Cole's
preferred stock should be
3. Norton Co. was organized on January 2, 2007, with 500,000 authorized
shares of $10 par
common stock. During 2007, Norton had the following capital
January 5—issued 375,000 shares at $14 per share.
July 27—purchased 25,000 shares at $11 per share.
November 25—sold 15,000 shares of treasury stock at $13 per share.