1. Decide whether each of the following statements is true or false. (Click the icon to view the statements.) 2. Hooper Company has two classes of common stock. Only the Class A common stockholders are entitled to vote. The company's balance sheet includes the following information: E: (Click the icon to view the partial balance sheet.) - X Read the requirements. Requirements 1. Decide whether each of the following statements is true or false a. b. Record the issuance of the Class A common stock for cash. Use Hooper's account titles. Record the issuance of the Class B common stock for cash. Use Hooper's account titles. How much of Hooper'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? Write a sentence to describe what Hooper's stockholders' equity means. C. e. a. The policy-making body in a corporation is called the board of directors. True The owner of 100 shares of preferred stock has greater voting rights than the owner of 100 shares b. of common stock. False Par-value stock is worth more than no-par value stock. False d. Issuing 1,000 shares of $5 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-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 f. regardless of the assets' prior book values. True g. Preferred stock is a riskier investment than common stock. False 2. Hooper 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 Hooper's account titles. (Record debits first, then credits. Exclude explanations from any journal entries.) d. More Info a. b. Journal Entry Accounts Date Debit edit C. d. The policy-making body in a corporation is called the board of directors. The owner of 100 shares of preferred stock has greater voting rights than the owner of 100 shares of common stock. Par-value stock is worth more than no-par value stock. Issuing 1,000 shares of $5 par-value stock at $12 increases contributed capital by $12,000 Issuing no-par value stock with a stated value is fundamentally different from issuing par-value stock. 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 Preferred stock is a riskier investment than common stock. g Additional Paid-in Capital Cash Class A Common Stock Class B Common Stock Retained Earnings Print Done Choose from any list or enter any number in the input fields and then click Check Answer. 3 parts remaining Clear All Check
