Reference no: EM132996114

Problem 1: The legal capital plus amounts paid in excess of par values is "Total paid in capital".

a) True b) False

Problem 2: A corporation is created by registering your business name, while appointing a board of directors and filing articles of incorporation.

a) True b) False

Problem 3: Little Bo Beep Corporation issued 5,000 shares of $2 par value common stock. The issue price was $7.50 per share. The entry to record this transaction includes a:

a) debit to Cash for $10,000.

b) debit to Paid-in Capital in Excess of Par for $27,500.

c) credit to Common Stock for $10,000.

d) credit to Gain on Stock $37,500.

e) None of these.