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  1. business
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  3. decide whether each of the following statements is

Decide whether each of the following statements is true or false. a. The policy-making...

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Question

Accounting

Decide whether each of the following statements is true or false.
a. The policy-making body in a corporation is called the board of directors.
The owner of 100 shares of preferred stock has greater voting rights than the owner of 100 shares
b. of common stock.
c. Par-value stock is worth more than no-par value stock.
d. Issuing 1,000 shares of $5 par-value stock at $12 increases contributed capital by $12,000.
Data table
Stockholders' Equity
Amount
Capital stock:
Class A common stock, voting, $2 par value, authorized,
issued, and outstanding 1,000,000 shares
Class B common stock, nonvoting, no par value, authorized,
issued, and outstanding 45,500,000 shares
2,000,000
issued, and outstanding 45,500,000 shares
Requirements
a. Record the issuance of the Class A common stock for cash. Use Mountain's
account titles.
b. Record the issuance of the Class B common stock for cash. Use Mountain's
account titles.
c. How much of Mountain's stockholders' equity was contributed by
the stockholders? How much was provided by profitable operations? Does
this division of equity suggest that the company has been successful? Why
or why not?
d. Write a sentence to describe what Mountain's stockholders' equity means.
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