A Corporation Has the Following Account Balances: Common Stock, $1

question 189

Multiple Choice

A corporation has the following account balances: Common Stock, $1 par value, $80,000; Paid-in Capital in Excess of Par Value, $2,700,000.Based on this information, the

• A)legal capital is $2,780,000.
• B)number of shares issued is 80,000.
• C)number of shares outstanding is 2,780,000.
• D)average price per share issued is $3.48.

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Definitions:

Manufacturing Equipment

Tools and machinery used in the process of producing goods from raw materials.

Sprinkles

Small pieces of confectionery used as a decoration or to add texture to desserts.

Indirect Material

Materials used in the production process that cannot be directly linked to specific products, such as lubricants and cleaning supplies.

Prime Costs

The immediate expenses involved in producing a product, encompassing both the raw materials and the direct labor costs.