1. Earned Capital is the total amount paid in by stockholders in exchange for shares of ownership

Group of answer choices

True

False

2. When stock is issued at PAR value in exchange for cash, the journal entry is a debit to cash and a credit to common stock.

Group of answer choices

True

False

3. Assume Hydro-Slide, Inc. issues an additional 1,000 shares of the $1 par value common stock for cash at $5 per share. The journal entry is:

Cash 5,000

Common stock (1,000 x $4) 4,000

Paid-in capital in excess of

par value - common 1,000

Group of answer choices

True

False

4. To calculate Total Paid In Capital, Common stock is subtracted from Paid-in capital in excess of par value to determine Total Paid-in Capital.

Group of answer choices

True

False