Dan Corp issues 500 of 10%, $100 par value preferred stock to attorneys who helped the company organize. Attorneys valued their service at $100,000. Preferred Stock should be recorded as: *

Debit $50,000

Credit $50,000

Debit $130,000

Credit $130,000

Which of the following represents the number of shares repurchased from the market? *

Treasury shares

Issued shares

Outstanding shares

Authorized shares

The sale of common stock below par: *

Is a common occurrence

Is not permitted

Is a practice that most shareholders encourage

Requires that a liability be recorded for the difference between the sales price and the par value of the shares.