$0
$50,000
$70,000
$20,000
3Multiple Choice Question 201
A net loss
occurs if operating expenses exceed cost of goods sold.
is closed to Retained Earnings even if it would result in a debit
balance.
is closed to the paid-in capital account of the stockholders’ equity
section of the balance sheet.
is not closed to Retained Earnings if it would result in a debit balance.
4Multiple Choice Question 98
Hsu, Inc. issued 7,500 shares of stock at a stated value of $8/share.
The total issue of stock sold for $15 per share. The journal entry to
record this transaction would include a
debit to Cash for $60,000.
credit to Common Stock for $60,000.
credit to Common Stock for $112,500.
credit to Paid-in Capital in Excess of Par for $112,500.