# Authorized common stock refers to the total number of shares:

26. Option - D, That can be issued

Explanation :

Authorized common stock refers to the total number of shares that can be issued by company in its whole life.

27. Option - C, Dividends are not tax deductible

Explanation :

One of the main disadvantage of equity financing is that the dividends are not tax deductible.

28. Option - A, Net income less dividends since the company first started

Explanation :

Retained earnings represent a company's net income less dividends since the company first started. It represents accumulated earnings over the years.

29. Option - A,

Explanation :

Journal entry is-

 Account Debit Credit Cash A/c (26,000 shares x $12)$312,000 Common stock (26,000 shares x $1)$26,000 Additional Paid in capital (26,000 shares x $11)$286,000

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