25. When a corporation issues common stock for cash for more than its par value, how does the transaction affect the accounts?

Group of answer choices

A. Common Stock increases; Cash increases

B. Common Stock increases; Additional Paid-in Capital decreases; Cash decreases

C. Common Stock increases; Retained Earnings increases; Cash increases

D. Common Stock increases; Additional Paid-in Capital increases; Cash increases

21. Hamilton Co. needs additional shares of stock for employee compensation purposes and purchases 1,000 shares of stock from its shareholders for $25 per share. How is this transaction recorded, and how is the balance sheet affected?

Group of answer choices

A. Treasury Stock is increased by $25,000, which increases stockholders equity; Cash is decreased by $25,000, which decreases assets

B. Common Stock is decreased by $25,000, which decreases stockholders equity; Cash is decreased by $25,000, which decreases assets

C. Treasury Stock is increased by $25,000, which decreases stockholders equity; Cash is decreased by $25,000, which decreases assets

D. Additional Paid-in Capital is decreased by $25,000, which decreases stockholders equity; Cash is decreased by $25,000, which decreases assets

22. Baker Manufacturing just completed a customer order for a local retailer. The order required direct materials of $4,300 and direct labor costs of $7,950. Baker applies overhead on the basis of direct labor hours, the current predetermined overhead rate is $19.80 per direct labor hour, and the customer order required 391 direct labor hours. The total units produced for the order equal 1,000. What is the total cost of the customer order, and what is the per-unit cost for the order?

Group of answer choices

A. $15,692; $15.69

B. $19,992; $19.99

C. $12,250; $12.25

D. $12,042; $12.04