1. Richman's Corporation has the following was formed on January 1, the corporate charter provided for 500,000 shares of $5 par value stock. The following transaction was engaged in by the corporation during the first month of operation.

Jan. 5 The corporation issued 8,000 shares of common stock for cash of $25 per share.

What would the amount credited to the Paid in Capital account on January 5?

a. 160,000

b. 240,000

c. 440,000

2. On June 20, Blaney Company purchased 2,000 shares of ABC Company common stock for $32 per share plus a $75 brokerage fee. These shares are categorized as short-term investment in trading securities. Which of the following is a correct entry to record the purchase:

a. debit common stock 64,000

b. debit short term investment trading securities 64,075

c. debit brokerage expense for 75