1. A corporate charter specifies that the company may issue up to 31 million shares of stock. The company sells 21 million shares to investors and later buys back 8.5 million shares. The current number of shares of treasury stock after these transactions have been accounted for is:

a) 13.0 million shares.

b) 10.0 million shares.

c) 23.0 million shares.

d) 8.5 million shares.

2. A corporate charter specifies that the company may sell up to 30 million shares of stock. The company sells 20 million shares to investors and later buys back 8.0 million shares. The number of authorized shares after these transactions are accounted for is:

a) 12 million shares.

b) 30 million shares.

c) 20 million shares.

d) 22 million shares.

3. A corporate charter specifies that the company may sell up to 30 million shares of stock. The company issues 20 million shares to investors and later repurchases 8.0 million shares. The number of issued shares after these transactions have been accounted for is:

a) 20 million shares.

b) 12 million shares.

c) 15 million shares.

d) 22 million shares.

4. A corporate charter specifies that the company may sell up to 26 million shares of stock. The company sells 18 million shares to investors and later buys back 6.0 million shares. The current number of outstanding shares after these transactions have been accounted for is:

a) 12.0 million shares.

b) 13.0 million shares.

c) 26.0 million shares.

d) 8.0 million shares.

5. A company issues 1 million shares of common stock with a par value of $0.18 for $16.60 a share. The entry to record this transaction includes a debit to Cash for:

$180,000 and a credit to Common Stock for $180,000.

$16,600,000 and a credit to Common Stock for $16,600,000.

$16,600,000, a credit to Common Stock for $180,000, and a credit to Additional Paid-in Capital for $16,420,000.

$180,000, a debit to Capital Receivable for $16,420,000, a credit to Common Stock for $180,000, and a credit to Additional Paid-in Capital for $16,420,000.