1.A partnership is liquidated by selling the non-cash assets, paying the creditors in full, and distributing the remaining assets to the partners. Explain and give one example (show calculation)

2. Companies frequently issue both preferred stock and common stock. What are the major differences in the rights of stockholders between these two classes of stock?

3.

Rim Corporation allows the issuance of a maximum of 5,000,000 shares of $1 par value common stock. During its first three years of operation, Rim issued 2,400,000 shares at $30 per share. It later acquired 40,000 of these shares as treasury stock for $25 per share.

Instructions

Based on the above information, answer the following questions:

(a)How many shares were authorized?

(b)How many shares were issued?

(c)How many shares are outstanding?

(d)What is the balance of the Common Stock account?