Question
1. If Briggs and Stratton Company issues 9000 shares of $5 par value common stock for $160,000, the account a) Common Stock will be credited
1. If Briggs and Stratton Company issues 9000 shares of $5 par value common stock for $160,000, the account
a) Common Stock will be credited for $45,000
b) Paid-In Capital in Excess of Par will be credited for $160,000
c) Cash will be debited for $115,000
d) Paid-in Capital in Excess of Par will be credited for $45,000
2. Airstream Company purchases 400 shares of its own $10 par value common stock for $27 per stock per $29 per share. In entry to record the sale of the treasury stock, there will be
a) credit to Paid-In Capital from Treasury Stock for $800
b) credit to Common Stock for 10,800
c) credit to Treasury Stock for $11,600
d) credit to Treasury Stock for $4000
3. A company has 20,000 shares of $8 par value common stock. If they have a 4 for 1 stock split there will be:
a) 20,000 shares of $2 par stock
b) 80,000 shares of $32 par stock
c) 5,000 shares of $8 par stock
d) 80,000 shares of $2 par stock
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started