1· The par value per share of common stock represents the a. minimum selling pri

Question

1· The par value per share of common stock represents the a. minimum selling price of the stock established by the articles of incorporation b, minimum amount the stockholder will receive when the corporation is liquidated c. dollar amount assigned to each share d. amount of dividends per share to be received each year 2. The entry to record the issuance of common stock at a price above par includes a debit to a. Organizational Expenses b. Common Stock c. Cash d. Paid-In Capital in Excess of Par Common Stock

Explanation / Answer

Solution 1:

Par value of the stock represents the selling price of the stock which is established by the corporation in the Articles of Incorporation.

So the correct answer for par value of stock is A.

Minimum selling price of the stock established by the articles of incorporation..

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