Authorized shares are: A. Stock that is performing well on the New York stock exchange. B. The number of shares of capital stock that can be held in the corporate treasury. C. The maximum number of shares of capital stock that can be sold to the public. D. The number of shares of capital stock that can be held in the hands of shareholders. which of the following statements are correct? I. stock designated as preferred usually has preferential rights over other classes of stock dividends and liquidating distributions. II. dividends in arrears on cumulative preferred stock are reported as current liabilities. A. Only I B. Only II C. Both I and II D. Neither I or II which of the following results in increasing basic earnings per share? I. paying more than carrying value to retire outstanding bonds. II. purchasing treasury stock. III. issuing cumulative preferred stock. A. I and II only B. II only C. II and III only D. I,II, and III ICOT industries issues 15 million of its $1 par common shares for $424 million on April 11. Legal, promotional, and accounting services necessary to effect the sale cost of $2 million. The journal entries to record the proceeds from the issue of common shares includes a A. debit to cash account by $424 million B. debit to stock issue costs account by $2 million C. credit to common stock account by $422 million D. credit to paid-in capital-excess of par account by $407 million