Chapter 14 True or False: 1. Similar to partners in a partnership, stockholders of a corporation have unlimited liability. 2. All states require a par value per share for capital stock. 3. The journal entry to record the authorization of capital stock includes a credit to the capital stock account. Fill-in-the-Blank: 1. The assigned value per share is known as 2. Wien common stock is issued for cash, the account will be credited for the par value of the stock. 3. The maximum number of shares a company can issue, indicated by the corporation's state charter, is referred to as 4. The Additional Paid-in capital account is this type of account Problem: Argo Company is authorized to issue 100,000 shares of $2 par value common stock. On January 1, the company issues 5,000 shares of common stock when the market price was $3 per share. On January 5, the company issued 30,000 shares in exchange for land with a market value of $75,000. On January 10, the company issues 200 shares of its 10%, $5 par value preferred stock. The company is authorized to issue 1,000 shares of its preferred stock. Prepare the journal entries