The term legal capital is a descriptive term for a

This preview shows page 212 - 214 out of 290 pages.

We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
Applied Calculus for the Managerial, Life, and Social Sciences
The document you are viewing contains questions related to this textbook.
Chapter 6 / Exercise 41
Applied Calculus for the Managerial, Life, and Social Sciences
Tan
Expert Verified
74.The term legal capital is a descriptive term fora.stockholders’ equity.b.par value.c.residual equity.d.market value.Ans: B, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective, AICPA FC: Reporting, AICPA PC: None, IMA:FSA75.A corporation has the following account balances: Common Stock, $1 par value,$80,000; Paid-in Capital in Excess of Par Value, $2,700,000. Based on this information,thea.legal capital is $2,780,000.b.number of shares issued is 80,000.c.number of shares outstanding is 2,780,000.d.average price per share issued is $3.48.Ans: B, LO: 2, Bloom: C, Difficulty: Medium, Min: 2, AACSB: Analytic, AICPA BB: Legal/Regulatory Perspective, AICPA FC: Reporting, AICPA PC:Problem Solving, IMA: ReportingSolution: $80,000 $1 80,00076.The authorized stock of a corporationa.only reflects the initial capital needs of the company.b.is indicated in its by-laws.c.is indicated in its charter.d.must be recorded in a formal accounting entry.Ans: C, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective, AICPA FC: None, AICPA PC: None, IMA:Business Economics77.The amount of stock that may be issued according to the corporation’s charter is referred to as thea.authorized stock.
We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
Applied Calculus for the Managerial, Life, and Social Sciences
The document you are viewing contains questions related to this textbook.
Chapter 6 / Exercise 41
Applied Calculus for the Managerial, Life, and Social Sciences
Tan
Expert Verified
b.issued stock.c.unissued stock.d.outstanding stock.Ans: A, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective, AICPA FC: None, AICPA PC: None, IMA:Business Economics78.If Norben Company issues 6,000 shares of $5 par value common stock for $210,000,the accounta.Common Stock will be credited for $210,000.b.Paid-in Capital in Excess of Par Value will be credited for $30,000.c.Paid-in Capital in Excess of Par Value will be credited for $180,000.d.Cash will be debited for $180,000.Ans: C, LO: 2, Bloom: AP, Difficulty: Medium, Min: 2, AACSB: Analytic, AICPA BB: Legal/Regulatory Perspective, AICPA FC: Measurement, AICPA PC:Problem Solving, IMA: FSASolution: $210,000 (6,000 $5) $180,000(Iss. Pr. – (sh. iss. ×PV/sh)79.Alt Corp. issues 5,000 shares of $10 par value common stock at $14 per share. Whenthe transaction is recorded, credits are made to:a.Common Stock $50,000 and Paid-in Capital in Excess of Stated Value $20,000.b.Common Stock $70,000.c.Common Stock $50,000 and Paid-in Capital in Excess of Par Value $20,000.d.Common Stock $50,000 and Retained Earnings $20,000.Ans: C, LO: 2, Bloom: AP, Difficulty: Medium, Min: 2, AACSB: Analytic, AICPA BB: Legal/Regulatory Perspective, AICPA FC: Measurement, AICPA PC:Problem Solving, IMA: FSASolution: 5,000 $10 $50,000; ($14 $10) 5,000 20,000(Sh. iss. ×PV/sh); (Iss. pr. – pV/sh) ×sh. iss.

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture