1 The legal capital of a firm (amount in Common Stock account) is unaffected by a stock split a true b false 2 If stock is issued with no par or stated value, then there will be no 'Additional Paid in Capital' account a true b false 3 Sally Jones acquired 5,000 shures of $5 par value stock in exchange for land valued by an appraiser at $50,000 Her brother, John Jones, bought a large number of same company's shares on the same day for $9 cash per share Which of the following should be used to record the value of the land on the company's books a the $5 par value of the stock (a total value of $25,000 for the shares Sally received $5 par value per share x5,000 shares) b the $9 per share eash value of the shares, as established by John's transaction (a total value of $45,000 for the shares $ ally receivod $9 per share x5,000 shares) c a price determined by the company's chief accounting officer d the $50,000 appraised value of the land 4 A company purchases 500 shares of its $50 par value stock at $60 per share It then reissues 250 shares at $62 per share The entry upon reissue of the stock would include a credit to a retained eamings for $15,500 b treasury stock for $15,500 c gain on sale of treasury stock for $500 d additional paid in capital (from treasury stock) for $00 5 MeGee Corporation has 4,000 shares of $30 par value common stock outstanding If MeGee declares a 5 stock dividend on its common stock when the market value is $35 per share, for what amount will 'Additional Paid in Capital' be recorded a $6,000 b $5,000 c $1,000 d $7,000 6 Morgan Corporation has 100,000 shares of $12 par value common stock If the firm declares 4 for 1 stock split, the par value per share of common stock will equal a 53 b $48 c $4 d $6 7 Which of the following will decrease total stockholder's equity a purchase of treasury stock b stock split c sale of treasury stock d stock dividend 8 A company has 10,000 shares outstanding from 1 1 to 3 31, and 14,000 shares outstanding from 4 1 to 12 31 What is the weighted average number of shares used in eamings per share caleulations a 11,833 b 12,000 c 14,500 d 13,000

Question

1  The legal capital of a firm (amount in Common Stock account) is unaffected by a stock split  a  true b  false 2  If stock is issued with no par or stated value, then there will be no 'Additional Paid in Capital' account  a  true b  false 3  Sally Jones acquired 5,000 shures of $5 par value stock in exchange for land valued by an appraiser at $50,000  Her brother, John Jones, bought a large number of same company's shares on the same day for $9 cash per share  Which of the following should be used to record the value of the land on the company's books  a  the $5 par value of the stock (a total value of $25,000 for the shares Sally received   $5 par value per share x5,000 shares)  b  the $9 per share eash value of the shares, as established by John's transaction (a total value of $45,000 for the shares $ ally receivod  $9 per share x5,000 shares)  c  a price determined by the company's chief accounting officer d  the $50,000 appraised value of the land  4  A company purchases 500 shares of its $50 par value stock at $60 per share  It then reissues 250 shares at $62 per share  The entry upon reissue of the stock would include a credit to  a  retained eamings for $15,500  b  treasury stock for $15,500  c  gain on sale of treasury stock for $500  d  additional paid in capital (from treasury stock) for $00  5  MeGee Corporation has 4,000 shares of $30 par value common stock outstanding  If MeGee declares a 5  stock dividend on its common stock when the market value is $35 per share, for what amount will 'Additional Paid in Capital' be recorded  a  $6,000 b  $5,000 c  $1,000 d  $7,000 6  Morgan Corporation has 100,000 shares of $12 par value common stock  If the firm declares    4 for 1 stock split, the par value per share of common stock will equal  a  53 b  $48 c  $4 d  $6 7  Which of the following will decrease total stockholder's equity  a  purchase of treasury stock b  stock split c  sale of treasury stock d  stock dividend 8  A company has 10,000 shares outstanding from 1 1 to 3 31, and 14,000 shares outstanding from 4 1 to 12 31  What is the weighted average number of shares used in eamings per share caleulations  a  11,833 b  12,000 c  14,500 d  13,000

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1. The legal capital of a firm (amount in Common Stock account) is unaffected by a stock split. a. true b. false 2. If stock

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