Please select the correct answer. Circle the letter of the best response. 1. Whi

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Please select the correct answer.

Circle the letter of the best response. 1. Which of the following is not a characteristic of a corporation? A. Double taxation B. Indefinite life C. Unlimited liability D. One or more owners 2. What is the effect of the purchase of treasury stock? A. Decrease the number of shares outstanding. B. Decrease the number of shares issued. C. Increase the number of shares issued. D. Both A and B are correct. 3. Which of the following transactions result in a decrease in stockholders' equity? A. Sale of treasury stock B. Small stock dividend C. Cash dividend D. All of the above Affordable Garden Imports issued 500,000 shares of $1 par common stock at $5 per share. Which journal entry correctly records the issuance of this stock? 4. Accounts and Explanations Debit Credit 500,000 2,000,000 A Common Stock Paid-In Capital in Excess of Par-Common Cash 2.500,000 B. Cash 2,500,000 Common Stock 500,000 Paid-In Capital in Excess of Par-Common Cash Common Stock 2,000,000 2,500,000 2.500,000 2,500,000 C. Common Stock 2,500,000 D. Cash

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer and please give thumbs up   Statementshowing Computations Paticulars Amount Q1 C Unlimited Liability Q2 A decrease the number of shares outstanding Q3 C Cash Dividend Dr Cr Q4 B Cash      2,500,000.00 To Common Stock         500,000.00 To Paid in capital in excess of par - common      2,000,000.00

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