ACCOUNTING - STOCK QUESTIONS

On December 2, 2015, Ewell Inc. purchases a piece of land from the original owner. In payment for the land, Ewell Inc. issues 8,000 shares of common stock with $1.00 par value. The land has been appraised at a market value of S400.000. Which of the following is included in the journal entry to record this transaction? credit Common Stock-$1 Par Value for $400,000 debit Common Stock-$1 Par Value for S8.000 and debit Paid - In Capital in Excess of Par-Common $392,000 credit Common Stock-$1 Par Value for $8,000 and credit Paid - In Capital in Excess of Par-Common $392,000 debit Cash $400,000 Which of the following is a characteristic of a corporation? Lenders of a corporation do not have the right to claim the corporation's assets to satisfy their obligations. A corporation is owned by stockholders. Each stockholder has the authority to commit the corporation to a binding contract through his/her actions. All shares of a corporation must be held by a single individual. Preferred stock is a stock that is distributed by corporations to avoid liquidation. that is distributed to employees of the company as a performance incentive. that gives its owners certain benefits over common stock. that sells for a very high price