On January 1, Year 1, Graham Corporation issued 260 shares of $5 par value common stock for $70 per share. Which of the following shows how the stock issue will affect Graham’s financial statements on January 1, Year 1?Multiple ChoiceBalance Sheet Income Statement Statement of Cash FlowsAssets = Common Stock + Paid-in Capital in Excess of Par Value Revenues − Expenses = Net Income$18,200   $1,300   $16,900 $16,900   NA   $16,900 $16,900 OperatingBalance Sheet Income Statement Statement of Cash FlowsAssets = Common Stock + Paid-in Capital in Excess of Par Value Revenues − Expenses = Net Income$18,200   $1,300   $16,900 NA   NA   NA $1,300 FinancingBalance Sheet Income Statement Statement of Cash FlowsAssets = Common Stock + Paid-in Capital in Excess of Par Value Revenues − Expenses = Net Income$18,200   $1,300   $16,900 NA   NA   NA $18,200 FinancingBalance Sheet Income Statement Statement of Cash FlowsAssets = Common Stock + Paid-in Capital in Excess of Par Value Revenues − Expenses = Net Income$18,200   $1,300   $16,900 $18,200   NA   $18,200 $18,200 Operating

On January 1, Year 1, Graham Corporation issued 260 shares of $5 stated value preferred stock for $70 per share. Which of the following shows how the stock issue will affect Graham’s financial statements on January 1, Year 1?Multiple ChoiceBalance Sheet Income Statement Statement of Cash FlowsAssets = Preferred Stock + Paid-in Capital in Excess of Stated Value Revenues − Expenses = Net Income$18,200   $1,300   $16,900 NA   NA   NA $1,300 FinancingBalance Sheet Income Statement Statement of Cash FlowsAssets = Preferred Stock + Paid-in Capital in Excess of Stated Value Revenues − Expenses = Net Income$18,200   $1,300   $16,900 NA   NA   NA $18,200 FinancingBalance Sheet Income Statement Statement of Cash FlowsAssets = Preferred Stock + Paid-in Capital in Excess of Stated Value Revenues − Expenses = Net Income$18,200   $1,300   $16,900 $18,200   NA   $18,200 $18,200 OperatingBalance Sheet Income Statement Statement of Cash FlowsAssets = Preferred Stock + Paid-in Capital in Excess of Stated Value Revenues − Expenses = Net Income$18,200   $1,300   $16,900 $16,900   NA   $16,900 $16,900 Operating

Wallace Corporation issued a 6 percent stock dividend on the 31,000 shares of stock outstanding. The par value of the common stock was $30 per share. At the time of the dividend, the market value of the stock was $60 per share. Which of the following shows how the stock dividend will affect Wallace’s financial statements?Multiple ChoiceBalance Sheet Income Statement Statement of Cash FlowsAssets = Common Stock + Additional Paid-in + Retained Earnings Revenues − Expenses = Net IncomeNA   $55,800   $55,800   $(111,600) NA   NA   NA NABalance Sheet Income Statement Statement of Cash FlowsAssets = Common Stock + Additional Paid-in + Retained Earnings Revenues − Expenses = Net IncomeNA   NA   $111,600   $(111,600) NA   NA   NA NABalance Sheet Income Statement Statement of Cash FlowsAssets = Common Stock + Additional Paid-in + Retained Earnings Revenues − Expenses = Net IncomeNA   $(111,600)   $55,800   $55,800 NA   NA   NA NABalance Sheet Income Statement Statement of Cash FlowsAssets = Common Stock + Additional Paid-in + Retained Earnings Revenues − Expenses = Net Income$(111,600)   NA   NA   $(111,600) NA   NA   NA $(111,600) Financing

A company issues 10,000 shares of $0.05 par value common stock for $25 per share. Which of the following is recorded at issuance?Multiple ChoiceCredit Common Stock for $500.Credit Additional Paid-In Capital for $500.Credit Additional Paid-In Capital for $250,000.Credit Common Stock for $250,000.

A company issues 1,030 shares of its common stock for $30,900 cash. Prepare journal entries to record this event under each of the following separate situations.The stock has neither par value nor stated value.The stock has a $1 stated value.The stock has a $2 par value.

Information concerning common stock as of November 30, the end of the company’s current fiscal year, is presented below.Number of shares outstanding460,000Par value per share$  5.00Dividends paid per share in current year6.00Market price per share54.00Basic earnings per share18.00Diluted earnings per share12.00The price-earnings ratio for the common stock is