1)

A company issued 165 shares of $100 par value common stock for $17,500 cash. The total amount of paid-in capital is:

Multiple Choice

• $1,650.

• $16,500.

• $17,500.

• $1,000.

• $100.

  2) A company issued 180 shares of $100 par value common stock for $21,400 cash. The total amount of paid-in capital in excess of par is:

  Multiple Choice

• $1,800.

• $18,000.

• $21,400.

• $3,400.

• $100.

  3) A company had a beginning balance in retained earnings of $402,000. It had net income of $51,000 and paid out cash dividends of $56,000 in the current period. The ending balance in retained earnings equals:

  Multiple Choice

• $351,000.

• $509,000.

• $458,000.

• $407,000.

• $397,000.

  4) Global Corporation had 53,000 shares of $20 par value common stock outstanding on July 1. Later that day the board of directors declared a 20% stock dividend when the market value of each share was $30. The entry to record the dividend declaration is:

  Multiple Choice

• Debit Retained Earnings $212,000; credit Common Stock Dividend Distributable $212,000.

• Debit Retained Earnings $318,000; credit Common Stock Dividend Distributable $318,000.

• No entry is made until the stock is issued.

• Debit Retained Earnings $318,000; credit Cash $318,000.

• Debit Retained Earnings $318,000; credit Common Stock Dividend Distributable $212,000; credit Paid-In Capital in Excess of Par Value, Common Stock $106,000.

  5)A company has earnings per share of $10.30. Its dividend per share is $.85, its market price per share is $135.96, and its book value per share is $112. Its price-earnings ratio equals:

  Multiple Choice

• 10.30.

• 10.87.

• 12.12.

• 13.20.

• 9.20.

  A corporation declared and issued a 10% stock dividend on October 1. The following information was available immediately prior to the dividend:

  Retained earnings	$	720,000
  Shares issued and outstanding		57,000
  Market value per share	$	18
  Par value per share	$	5

  6) The amount that contributed capital will increase (decrease) as a result of recording this stock dividend is:

  Multiple Choice

• $0.

• $(28,500).

• $28,500.

• $102,600.

• $(102,600).

  7) Eastline Corporation had 12,000 shares of $10 par value common stock outstanding when the board of directors declared a stock dividend of 4,080 shares. At the time of the stock dividend, the market value per share was $16. The entry to record this dividend is:

  Multiple Choice

• Debit Common Stock Dividend Distributable $65,280; credit Retained Earnings $65,280.

• Debit Retained Earnings $65,280; credit Common Stock Dividend Distributable $40,800; credit Paid-In Capital in Excess of Par Value, Common Stock $24,480.

• Debit Retained Earnings $65,280; credit Common Stock Dividend Distributable $65,280.

• Debit Retained Earnings $40,800; credit Common Stock Dividend Distributable $40,800.

• No entry is needed.

  8) A company had a beginning balance in retained earnings of $44,100. It had net income of $7,100 and paid out cash dividends of $5,900 in the current period. The ending balance in retained earnings equals:

  Multiple Choice

• $45,300.

• $42,900.

• $13,000.

• $5,900.

• $57,100.

  9) A corporation issued 7,200 shares of $10 par value common stock in exchange for some land with a market value of $114,000. The entry to record this exchange is:

  Multiple Choice

• Debit Land $72,000; credit Common Stock $72,000.

• Debit Common Stock $114,000; credit Land $114,000.

• Debit Common Stock $72,000; debit Paid-In Capital in Excess of Par Value, Common Stock $42,000; credit Land $114,000.

• Debit Land $114,000; credit Common Stock $72,000; credit Paid-In Capital in Excess of Par Value, Common Stock $42,000.

• Debit Land $114,000; credit Common Stock $114,000.

  10) Hutter Corporation declared a $0.50 per share cash dividend on its common shares. The company has 35,000 shares authorized, 18,000 shares issued, and 14,000 shares of common stock outstanding. The journal entry to record the dividend declaration is:

  Multiple Choice

• Debit Common Dividends Payable $7,000; credit Cash $7,000.

• Debit Retained Earnings $7,000; credit Common Dividends Payable $7,000.

• Debit Retained Earnings $9,000; credit Common Dividends Payable $9,000.

• Debit Retained Earnings $17,500; credit Common Dividends Payable $17,500.

• Debit Common Dividends Payable $9,000; credit Cash $9,000.