1. If a company issues 1,000 shares of common stock at a market price of $20 per share, which of the following is the correct balance sheet effect?
A. Increase cash by $20,000 and increase contributed capital by $20,000
B. Increase cash by $20,000 and increase earned capital by $20,000
C. Increase stock revenues by $20,000
D. Stock issuances are not reported on the balance sheet
E. None of the above
2. How long would it take $100 to double if it were invested in a bank that pays 8% per year?
A. 6.87 years
B. 8.28 years
C. 9.01 years
D. 10.09 years
E. 12.46 years