1) Retained earning is a. Always equal to the amount of cash that the corporation has generated from operations. b. A part of the paid-in capital of the corporation. c. A part of the stockholders’ claim on the total assets of the corporation. d. Closed at the end of each accounting period. 2) When stock is issued for legal services, the transaction is recorded by debiting Organization Expense for the a. stated value of the stock. b. par value of the stock. c. market value of the stock. d. book value of the stock. 3) If Vickers Company issues 4,000 shares of $5 par value common stock for $140,000, a. Common Stock will be credited for $140,000. b. Paid-In Capital in Excess of Par will be credited for $20,000. c. Paid-In Capital in Excess of Par will be credited for $120,000. d. Cash will be debited for $120,000. 4) If common stock is issued for an amount greater than par value, the excess should be credited to a. Cash. b. Retained Earnings. c. Paid-in Capital in Excess of Par. d. Legal Capital. 5) If stock is issued for a noncash asset, the asset should be recorded on the books of the corporation at a. fair value. b. cost. c. zero. d. a nominal amount 6) If stock is issued for less than par value, the account a. Paid-In Capital in Excess of Par is credited. b. Paid-In Capital in Excess of Par is debited if a debit balance exists in the account. c. Paid-In Capital in Excess of Par is debited if a credit balance exists in the account. d. Retained Earnings is credited. 7) Which of the following represents the largest number of common shares? a. Treasury shares b. Issued shares c. Outstanding shares d. Authorized shares 8) New Corp. issues 2,000 shares of $10 par value common stock at $14 per share. When the transaction is recorded, credits are made to a. Common Stock $20,000 and Paid-in Capital in Excess of Stated Value $8,000. b. Common Stock $28,000. c. Common Stock $20,000 and Paid-in Capital in Excess of Par $8,000. d. Common Stock $20,000 and Retained Earnings $8,000. 9) If Keene Company issues 4,500 shares of $5 par value common stock for $80,000, the account a. Common Stock will be credited for $22,500. b. Paid-in Capital in Excess of Par will be credited for $22,500. c. Paid-in Capital in Excess of Par will be credited for $80,000. d. Cash will be debited for $57,500. 10) Carson Packaging Corporation began business in 2013 by issuing 25,000 shares of $3 par common stock for $8 per share and 10,000 shares of 6%, $10 par preferred stock for par. At year-end, the common stock had a market value of $12. On its December 31, 2013 balance sheet, Carson Packaging would report a. Common Stock of $300,000. b. Common Stock of $75,000. c. Common Stock of $200,000. d. Paid-In Capital of $75,000. 11) Hsu, Inc. issued 7,500 shares of stock at a stated value of $8/share. The total issue of stock sold for $15 per share. The journal entry to record this transaction would include a a. debit to Cash for $60,000. b. credit to Common Stock for $60 ...