1. The amount of stockholders investment is called

A. Outstanding stock

B. Paid-in capital

C. Retained earnings

D. Total stockholders equity.

2. When the common stock is sold on subscription

A. The common stock account is credited when the subscription price has been fully paid and the stock is issued.

B. The common stock account is credited when the subscription contract is signed and a down payment is received.

C. The common stock account is not used. Shares issued on subscription are credited to subscribed common stock, a permanent stockholders equity account.

D. A stockholders equity account called subscriptions receivable is used to record the par value of the shares issued.

3. What is the entry to record issuance of stock after all cash have been received from a stock subscription, assuming an entry to record common stock authorized was made at the time of incorporation?

A. Subscribed common stock Common stock

B. Subscribed common stock Common stock Paid-in capital in excess of par

C. Subscribed common stock Unissued common stock

D. Subscription receivable Subscribed common stock Paid-in capital in excess of par