Thompson Co. has 75,000 shares of $4 par value stock
outstanding (total legal capital of $300,000). If Thompson splits
the stock 2-for-1, what will be the par value of each share after
the split?
Edson Co. purchased 100 shares of treasury stock for $50
per share. The company later sold the shares for $55 per share. The
entry to record the sale of the shares would include a
| a. credit to Paid-in Capital from Treasury Stock for $500. |
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b. credit to Gain on Sale of Treasury Stock for $500.
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| c. credit to Treasury Stock for $5,500. |
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d. debit to Cash for $5,000.
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James Co. is a brand new corporation that has not yet
issued any stock. The corporation has approved the issuance of
2,500 shares of stock with a $2 par value to Tom Mills in exchange
for land appraised at $45,000. Upon acquiring the land, James Co.'s
land account should be debited for:
| A)$40,000 |
B)45,000 |
| C)35,000 |
D)5,000 |
Thompson Co. has 75,000 shares of $4 par value stock
outstanding (total legal capital of $300,000). If Thompson splits
the stock 2-for-1, what will be the total legal capital of all
Thompson Co. shares after the split?
| A)150,000 |
B)450,000 |
| C)300,000 |
D)600,000 |