14. A company was organized in January Year 6 with authorized capital of $10 par value common stock. On February 1, Year 6, 2 shares were issued at par for cash. On March 1, Year 6, the companys attorney accepted 5,000 shares of the common stock in settlement for legal services with a fair value of $60,000. Additional paid-in capital would increase on

I. February 1, Year 6

II. March 1, Year 6

Select one:

a. both I and II

b. I only

c. II only

d. neither I nor II

11. A Corporation has common stock with a $10 par value. A new share of this stock is issued for $13 to the investor. Which of the following is correct?

I. The company will debit common stock for the par value of $10

II. The company will debit cash for $13 and credit gain on sale of stock for $3 if the purchaser of the stock was already a stockholder and is simply buying additional shares.

Select one:

a. neither I nor II

b. I only

c. II only

d. both I and II