1. A company issues 1 million shares of common stock with a par value of $0.14 for $16.20 a share. The entry to record this transaction includes a debit to Cash for:

A) $140,000 and a credit to Common Stock for $140,000.

B) $16,200,000 and a credit to Common Stock for $16,200,000.

C) $16,200,000, a credit to Common Stock for $140,000, and a credit to Additional Paid-in Capital for $16,060,000.

D) $140,000, a debit to Capital Receivable for $16,060,000, a credit to Common Stock for $140,000, and a credit to Additional Paid-in Capital for $16,060,000.

2) A company sells 1 million shares of common stock with no par value for $16.00 a share. In recording the transaction, it would debit:

A) Cash and credit Additional Paid-in Capital for $16.00 million.

B) Common Stock and credit Additional Paid-in Capital for $16.00 million.

C) Common Stock and credit Cash for $16.00 million.

D) Cash and credit Common Stock for $16.00 million.

3) Anthem Inc. issues 200,000 shares of stock with a par value of $0.09 for $158 per share. Three years later, it repurchases these shares for $88 per share. Anthem records the repurchase in which of the following ways?

A) Debit Stockholders' Equity for $31.60 million, credit Additional Paid-in Capital for $17.60 million and credit Cash for $17.60 million.

B) Debit Common Stock for $18,000, debit Additional Paid-in Capital for $17,582,000 and credit Cash for $17.60 million.

C) Debit Treasury Stock for $17.60 million and credit Cash for $17.60 million.

D) Debit Common Stock for $18,000, debit Additional Paid-in Capital for $31,582,000 and credit Cash for $31.60 million.

4) GE buys back 307,000 shares of its stock from investors at $52 a share. Two years later it reissues this stock for $72 a share. The stock reissue would be recorded with a debit to Cash for:

A) a debit to Cash of $15.96 million, a debit to Additional Paid-in Capital of $6.14 million, a credit to Treasury Stock of $15.96 million, and a credit to Stockholders' Equity of $6.14 million.

B) a debit to Cash of $22.10 million and a credit to Treasury Stock of $22.10 million.

C) a debit to Cash of $22.10 million, a credit to Treasury Stock of $15.96 million, and a credit to Additional Paid-in Capital of $6.14 million.

D) a debit to Cash of $22.10 million, a credit to Treasury Stock of $15.96 million, and a credit to Gain on Sale of Treasury Stock for $6.14 million.