10. 27 5 R If a company issues 1,000 shares of $1 par value common stock for $30 per share, what would be the effect on the accounting equation? Increase assets and increase liabilities. Increase assets and increase revenue. Decrease assets and increase stockholders' equity Increase assets and decrease stockholders' equity None of the answers are correct. 028 un R The par value of shares issued is normally recorded in the: Additional Paid in Capital Common Stock Retained Earnings O Treasury Stock None of the answers are correct. D 29 59 South Beach Apparel issued 10,000 shares of $1 par value stock for $5 per share. What would be the required General Journal entry to record the issuance of the common stock? Debit Credit A. Cash 50,000 Common Stock 50,000 40,000 B. Cash 40.000 Common Stock 50,000 C. Cash 10.000 Common Stock 40,000 Additional Paid in Capital 50,000 D. Cash 40.000 Common Stock 10.000 Additional Paid in Capital Answer A Answer B A. Cash 50.000 Common Stock 50,000 B. Cash 40,000 Common Stock 40,000 C. Cash 50,000 Common Stock 10.000 Additional Paid in Capital 40.000 50,000 D. Cash 40,000 Common Stock 10,000 Additional Paid in Capital . Answer A Answer B Answer C Answer D None of the answers are correct, 30 59 Which of the following is TRUE regarding the accounting for Treasury Stock? O Treasury Stock is reported on the Balance Sheet in the Equity section The purchase of Treasury Stock has no impact on the Income Statement. Treasury Stock is a Contra Equity account. The purchase of Treasury Stock decreases the Total Equity balance. All of the above are true. 10. 31 59 On December 1, Coley Corporation acquired 1,000 shares of its $2 par value common stock for $27 each. What is the entry Coley would make to record the purchase of treasury stock on December 17 Debit Credit A. Treasury Stock 2,000 Cash 2.000 B. Cash 2.000 2.000 Treasury Stock 27,000 C. Cash 27,000 Treasury Stock 27,000 D. Treasury Stock 27.000 Cash Answer A Answer B Answer C December 17 Debit Credit A Treasury Stock 2,000 Cash 2.000 B. Cash 2.000 Treasury Stock 2.000 C. Cash 27,000 27,000 Treasury Stock D. Treasury Stock 27,000 27,000 Cash Answer A O Answer B Answer C Answer D None of the answers are correct. fol32 55 Authorized stock refers to the total number of shares: Number of shares sold minus treasury stock O Shares of the company's own stock that have been repurchased O Outstanding That can be issued None of the answers are correct 5 55 0933 The corporation's own stock that has been issued and then repurchased by the company is referred to as: O Outstanding Stock Authorized Stock O Treasury Stock Common Stock None of the answers are correct 5 R 034 Issued Stock refers to the total number of shares: Outstanding plus treasury stock Authorized Repurchased by the company of its own stock Outstanding less treasury stock None of the answers are correct