A corporation has the following account balances: Common stock, $1 par value, $20,000; Paid-in Capital in Excess of Par Value, $900,000. Based on this information, the legal capital is $920,000. number of shares issued are 20,000. number of shares outstanding are 920,000. average price per share issued is $4.60. If Vickers Company issues 1,000 shares of $5 par value common stock for $70,000, Common Stock will be credited for $70,000. Paid-In Capital in Excess of Par Value will be credited for $5,000. Paid-In Capital in Excess of Par Value will be credited for $65,000. Cash will be debited for $65,000. On July 1, 2005, Braxton, Inc. issued stock in exchange for a computer system. The system had a cost of $9, 500 and a fair market value at July 1 of $5,000. The computer system should be valued on Braxton's books at fair market value. cost. zero. a nominal amount. Treasury Stock is a(n) contra asset account retained earnings account asset account contra stockholders' equity account. Two thousand shares of treasury stock of Meyer, Inc., previously acquired at $12 per share, are sold at $18 per share. The entry to record this transaction will include a credit to Treasury Stock for $36,000. debit to Paid-In Capital from Treasury Stock for $12,000. debit to Treasury Stock for $24,000. credit to Paid-In Capital from Treasury Stock for $12,000. When preferred stock is cumulative, preferred dividends not declared in a period are considered a liability. called dividends in arrears. distributions of earnings. never paid. A corporation has the following account balances: Common stock, $1 par value, $20,000; Paid-in Capital in Excess of Par Value, $900,000. Based on this information, the legal capital is $920,000. number of shares issued are 20,000. number of shares outstanding are 920,000. average price per share issued is $4.60. If Vickers Company issues 1,000 shares of $5 par value common stock for $70,000, Common Stock will be credited for $70,000. Paid-In Capital in Excess of Par Value will be credited for $5,000. Paid-In Capital in Excess of Par Value will be credited for $65,000. Cash will be debited for $65,000. On July 1, 2005, Braxton, Inc. issued stock in exchange for a computer system. The system had a cost of $9, 500 and a fair market value at July 1 of $5,000. The computer system should be valued on Braxton's books at fair market value. cost. zero. a nominal amount. Treasury Stock is a(n) contra asset account retained earnings account asset account contra stockholders' equity account. Two thousand shares of treasury stock of Meyer, Inc., previously acquired at $12 per share, are sold at $18 per share. The entry to record this transaction will include a credit to Treasury Stock for $36,000. debit to Paid-In Capital from Treasury Stock for $12,000. debit to Treasury Stock for $24,000. credit to Paid-In Capital from Treasury Stock for $12,000. When preferred stock is cumulative, preferred dividends not declared in a period are considered a liability. called dividends in arrears. distributions of earnings. never paid