1) A company has earnings per share of $9.30. Its dividend per share is $1.20, its market price per share is $113.46, and its book value per share is $89. Its price-earnings ratio equals:

Multiple Choice

• 9.57.

• 8.20.

• 9.30.

• 7.75.

• 12.20.

  2) Percy Corporation was formed on January 1. The corporate charter authorized 100,000 shares of $10 par value common stock. During the first month of operation, the corporation issued 220 shares to its attorneys in payment of a $4,200 charge for drawing up the articles of incorporation. The entry to record this transaction would include:

  Multiple Choice

• A credit to Common Stock for $4,200.

• A credit to Paid-in Capital in Excess of Par Value, Common Stock for $4,200.

• A debit to Organization Expenses for $2,200.

• A debit to Organization Expenses for $4,200.

• A debit to Paid-in Capital in Excess of Par Value, Common Stock for $2,000.

  3) A company issued 140 shares of $100 par value common stock for $15,000 cash. The total amount of paid-in capital is:

  Multiple Choice

• $15,000.

• $1,400.

• $1,000.

• $14,000.

• $100.

  4) A corporation issued 120 shares of its $5 par value common stock in payment of a $2,000 charge from its accountant for assistance in filing its charter with the state. The entry to record this transaction will include:

  Multiple Choice

• A $2,000 debit to Legal Expenses.

• A $600 debit to Organization Expenses.

• A $1,400 credit to Paid-in Capital in Excess of Par Value, Common Stock.

• A $2,000 credit to Common Stock.

• A $2,000 credit to Cash.