1. Decide whether each of the following statements is true or false 2. Mountain Company has two classes of common stock. Only the Class A common (Click the icon to view the statements.) stockholders are entitled to vote. The company's balance sheet includes the following information (Click the icon to view the partial balance sheet.) Read the requirements b. shares of common stock False c. Par-value stock is worth more than no-par value stock False d. Issuing 1,000 shares of 55 par-value stock at $12 increases contributed capital by $12,000. True Issuing no-par value stock with a stated value is fundamentally different from issuing par- e value stock False A corporation issues its preferred stock in exchange for land and a building with a combined market value of $200,000. This transaction increases the corporation's stockholders' equity by $200,000 regardless of the assets' prior book values. 9. Preferred stock is a riskier investment than common stock. False 2. Mountain Company has two classes of common stock. Only the Class A common stockholders are entitled to vote. Requirement 2a. Record the issuance of the Class A common stock for cash. Use Mountain's account titles. (Record debits first, then credits. Exclude explanations from any journal entries.) Journal Entry Date Accounts Debit Credit Class A Common Stock True Choose from any list or enter any number in the input fields and then click Check Answer Amount a. The policy-making body in a corporation is called the board of directors b. The owner of 100 shares of preferred stock has greater voting rights than the owner of 100 shares of common stock c Par-value stock is worth more than no-par value stock. d. Issuing 1,000 shares of $5 par-value stock at $12 increases contributed capital by $12,000. e. Issuing no-par value stock with a stated value is fundamentally different from issuing par-value stock. f. A corporation issues its preferred stock in exchange for land and a building with a combined market value of $200,000. This transaction increases the corporation's stockholders' equity by $200,000 regardless of the assets' prior book values g. Preferred stock is a riskier investment than common stock. Stockholders' Equity Capital stock Class A common stock, voting, $2 par value, authorized, issued, and outstanding 1,000,000 shares Class B common stock, nonvoting, no par value, authorized, issued, and outstanding 45,600,000 shares 2,000,000 11.100.000 13.100.000 2.126,000 874,672.000 Additional paid-in capital Retained earnings Total stockholders' equity 889.898,000 Print Done Print Done a. Record the issuance of the Class A common stock for cash. Use Mountain's account titles b. Record the issuance of the Class B common stock for cash. Use Mountain's account titles c. How much of Mountain's stockholders' equity was contributed by the stockholders? How much was provided by profitable operations? Does this division of equity suggest that the company has been successful? Why or why not? d. Write a sentence to describe what Mountain's stockholders' equity means the