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1. The legal capital of a firm (amount in Common Stock account) is unaffected by a stock split. a. true b. false 2. If stock is issued with no par or stated value, then there will be no 'Additional Paid-in Capital' account. a. true b. false 3. Sally Jones acquired 5,000 shures of $5 par value stock in exchange for land valued by an appraiser at $50,000. Her brother, John Jones, bought a large number of same company's shares on the same day for $9 cash per share. Which of the following should be used to record the value of the land on the company's books? a. the $5 par value of the stock (a total value of $25,000 for the shares Sally received: \$5 par value per share x5,000 shares). b. the $9 per share eash value of the shares, as established by John's transaction (a total value of $45,000 for the shares $ ally receivod: $9 per share x5,000 shares). c. a price determined by the company's chief accounting officer d. the $50,000 appraised value of the land. 4. A company purchases 500 shares of its $50 par value stock at $60 per share. It then reissues 250 shares at $62 per share. The entry upon reissue of the stock would include a credit to: a. retained eamings for $15,500. b. treasury stock for $15,500. c. gain on sale of treasury stock for $500. d. additional paid-in capital (from treasury stock) for $00. 5. MeGee Corporation has 4,000 shares of $30 par value common stock outstanding. If MeGee declares a 5% stock dividend on its common stock when the market value is $35 per share, for what amount will 'Additional Paid-in Capital' be recorded? a. $6,000 b. $5,000 c. $1,000 d. $7,000 6. Morgan Corporation has 100,000 shares of $12 par value common stock. If the firm declares \& 4 for 1 stock split, the par value per share of common stock will equal: a. 53 b. $48 c. $4 d. $6 7. Which of the following will decrease total stockholder's equity? a. purchase of treasury stock b. stock split c. sale of treasury stock d. stock dividend 8. A company has 10,000 shares outstanding from 1/1 to 3/31, and 14,000 shares outstanding from 4/1 to 12/31. What is the weighted average number of shares used in eamings per share caleulations? a. 11,833 b. 12,000 c. 14,500 d. 13,000

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