Question

When

2 comma 0002,000

shares of

$ 3$3

stated value common stock is issued at

$ 16$16

per​ share, ________.

A.the difference between the issue price and the stated value is credited to

Paidminus−In

Capital in Excess of

Statedminus−Common

B.the account titled

Paidminus−In

Capital in Excess of

Statedminus−Common

is used to record the issue price of the stock

C.

the accounting is exactly the same as the accounting for par value stock

D.Common Stock

long dash—

$ 3$3

Stated is credited for $ 32 comma 000$32,000

C

The purchase of treasury stock​ ________.

A.

decreases assets and​ stockholders' equity

B.

decreases assets and increases​ stockholders' equity

C.

increases assets and​ stockholders' equity

D.

increases assets and decreases​ stockholders' equity

Which of the following is the correct description of dividends in​ arrears?

A.

the cumulative amount of dividends that were paid in previous years

B.

the amount of dividends that will be paid in the next year

C.

the cumulative amount of dividends that were not paid in previous years

D.

the amount of dividends that were paid after the payment date

Answer 1

Solution 1:

When 2,000 shares of $3 stated value common stock is issued at $16 per​ share "the difference between the issue price and the stated value is credited to Paid−In Capital in Excess of Stated −Common"

Hence option A is correct.

Solution 2:

The purchase of treasury stock "decreases assets and​ stockholders' equity"

Hence option A is correct.

Solution 3:

the correct description of dividends in​ arrears is "the cumulative amount of dividends that were not paid in previous years"

Hence option C is correct.