QUESTION 1: A corporation has 10,000 shares of $100 par value stock outstanding. If the corporation issues a 5-for-1 stock split, the number of shares outstanding after the split will be 40,000.

TRUE or FALSE?

Please explain why

QUESTION 2: The entry to record the issuance of common stock at a price above par includes a debit to

a) Common stock

b) Pain-In Capital in Excess of Par-Common Stock

c) Cash

d) Organizational Expenses