Reference no: EM132883205

Problem 1: Which of the following best represents the accounting equation for a corporation?

a. Assets = Liabilities + Paid-In Capital

b. Asset = Liabilities + Treasury Stock

c. Assets = Liabilities + Retained Earnings

d. Assets = Liabilities + Stockholders' Equity

Problem 2: The two basic types of capital stock are

a. cumulative preferred stock and participating preferred stock.

b. cumulative common stock and participating common stock.

c. common stock and preferred stock.

d. participating common stock and participating preferred stock.

Problem 3: Hill Corporation issued 2,000 shares of $10 par common stock to various investors for $13 per share. To record this transaction, it is necessary to credit the

a. Common Stock account for $26,000.

b. Common Stock account for $20,000 and the Paid-In Capital in Excess of Par-Common account for $6,000.

c. Paid-In Capital in Excess of Par-Common account for $26,000.

d. Common Stock account for $20,000 and the Cash account for $6,000