QUESTION

A company is started in Year One and has 100,000 shares of common stock authorized with a par value of $10 per share. The company issues 20,000 shares of this stock for $21 per share in Year One and another 10,000 shares for $24 per share in Year Two. What is recorded in the company's Common Stock account at the end of Year Two?

A $300,000

B $1,000,000

C $660,000

D $240,000

QUESTION

The Monroe Corporation has 100,000 common shares issued and outstanding. This stock was issued several years ago at a price above the $10 per share par value. During the current year, the board of directors declared a 30 percent stock dividend so that 30,000 new shares were issued to the stockholders when the price of the stock was $30 per share. As a result of this dividend, what reduction was recorded in the reported amount of retained earnings?

A $600,000

B $300,000

C -0-

D $900,000