When recording the conversion of preferred stock into common stock , if the total contributed capital eliminated in regard to the preferred stock is less than the common stock par value , the difference is debited to Question 20 Which of the following represents shares of stock that will be issued upon completion of an installment purchase contract ? Question 21 Common stock issued to employees through the exercise of stock warrants under a stock option plan that is classified as a noncompensatory stock option plan is recorded by the corporation at the Question 22 Which set of accounting principles directly uses the term " reserve "? Question 23 What account should be debited when stock issuance costs are associated with the initial issuance of stock at incorporation ? Question 24 A corporation is a legal entity Question 25 Preferred stockholders share with common stockholders in any " extra " dividends when the preferred stock is ACC 499 Midterm Part 1 ( Set 2 ) Question 1 Minimum lease payments do not include Question 2 A direct financing lease differs from a sales-type lease in that Question 3 When a lessee makes periodic cash payments for a capital lease , which of the following accounts is increased ? Question 4 Executory costs Question 5