Bonds sold with nondetachable stock warrants do not recognize the value of the stock warrants

In Year 1, Stock to the Hand, Inc., issued 100,000 shares of the 1,500,000 shares of $0.60 par value common stock it is allowed to sell. The total received from issuing its common stock is $500,000. Stock to the Hand bought back 5,000 shares of its stock at a cost of $7 each. The entry to record the purchase of its stock includes a ______

a. credit Cash $35,000 b. debit Cash $35,000 c. credit Common Stock $35,000 d. debit Treasury Stock $35,000 e. credit Treasury Stock $35,000 f. debit Common Stock $35,000 g. debit Paid-in Capital in Excess of Par $35,000

The primary difference between an audit of the balance sheet and an audit of the income statement is that the audit of the income statement deals with the verification of

a. Transactions b. Authorizations c. Costs d. Cutoffs