ACCOUNTING 301: FINAL: CHAPTERS 11 AND 12 MULTIPLE CHOICE QUESTIONs Wich one howing would not be eonaitered an advantage of the d Govemment regulation 2. Par valuehat a a represents what a share of stock is worth b. represents the original selling price for a share of stock. for a share of stock after it is issued value assigned per share in the corporate charter 3. All Cop. issues 2.000 shares of $10 par value common stock at $14 per share. When the transaction is recorded, credits are made to: a Common Stock $20,000 and Paid-in Capital in Excess of Stated Value $8,000. b. Common Stock $28,000 c. Common Stock $20,000 and Paid-in Capital in Excess of Par Value $8,000. d. Common Stock $20,000 and Retained Earnings $8,00o. 4. The following data is available for BOX Corporation at December 31, 2012 $200,000 Common stock, par $10 (authorized 30,000 shares) Treasury stock (at cost $15 per share) S 1,200 Based on the data, how many shares of common stock are outstanding? a. 30,000. b. 20,000. c. 29,920 d. 19,920. 5. A corporation purchases 30,000 shares of its own $20 par common stock for $35 per share, recording it at cost. What will be the effect on total stockholders' equity? a. Increase by $1,050,000. b. Decrease by $600,000. c. Decrease by $1,050,000 d. Decrease by $600,000. 6. Logan Corporation issues 40,000 shares of $50 par value preferred stock for cash at $60 share. ey to record the transaction will consist of a detit $2,400,000 and a credit or credits to a. Preferred Stock for $2,400,000 b. Preferred Stock for $2,000,000 and Paid-in Capital in Excess of Par Value-Preferred Stock for $400,000 c. Preferred Stock for $2,000,000 and Retained Earnings for $400,000. d. Paid-in Capital from Preferred Stock for $2,400,000