(a) Write all the necessary journal entries.
(b) Construct a suitable instalment book and record in it the above transactions.
APPENDIX D
REVIEW QUESTIONS
Chapter I
1. Name the two general classes of corporations, and subclassify each.
2. Discuss briefly the working organization of the stock corporation.
3. Name the different classes of stock and discuss each briefly.
4. What is meant by watered stock?
5. How, on the balance sheet, would you show discount on stock? Premium on stock?
6. What are the correct journal entries covering the receipt of treasury stock, and its sale at a discount? At a premium?