1. Our company issued 100,000 shares of $10 par value common stock for $10 per share. We are authorized to sell 200,000 shares of common stock. Which account(s) and amount(s) should we credit when we journalize the entry to record the sale?

a) Cash $1,000,000

b) Cash $2,000,000

c) Common Stock $1,000,000

d) Common stock, $200,000, and paid in capital in excess of common stock, $800,000

2. Our company issued 5,000 shares of $3 par value common stock for $5 per share. We are authorized to sell 30,000 shares of common stock. What is the total amount for paid in capital in excess of par value?

a) $60,000

b) $25,000

c) $15,000

d) $10,000

3. Our company earned a net income of $150,000 for 2017. On January 3, 2018, we declared a $1.20 per share dividend on our 100,000 outstanding shares of common stock to shareholders of record as of January 15, 2018. We will pay the dividend on February 3, 2018. Which account and amount should we credit when we journalize the entry needed on the date of payment (February 3)

a)	Retained earnings, $120,000

b)	Dividends payable, $120,000

c)	Cash, $120,000

d)	No entry is required on the date of payment