Question

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True/False 7 points each. Circle the correct answer. Corporations avoid many of the state regulations and controls that proprietorships and partnerships are required to follow. True False 2. When no-par stock is not assigned a stated value, the total amount received is 43. recorded in the Common Stock account. True False Multiple Choice 5 points each. Circle the correct answer. The right of common shareholders to purchase their proportional share of any common stock later issued by the corporation is called a 68. A. Preemptive right Proxy right Right to call Financial leverage Voting right В. C. D. E. Comfort Mattresses, Inc. sold 26,000 shares of its $1 par value common stock at a cash price of $12 per share. The entry to record this transaction would be 111 Debit Cash $312,000; credit Common Stock $26,000; credit Paid-in Capital in Excess of Par Value, Common Stock $286,000. Debit Cash for $312,000; credit Common Stock $312,000. Debit Common Stock $26,000: debit Paid-in Capital in Excess of Par Value, Common Stock $286,000; credit Cash $312,000. Debit Cash $312,000; credit Stock Liability $286,000 credit Common Stock $26,000 Debit Common Stock $26,000; credit Cash $26,000 A. В. C. D. E.

Answer 1