1. The journal entry to record the payment at maturity of an interest-bearing note is

A. debit Accounts Payable; credit Cash

B. debit Notes Payable and Interest Receivable; credit Cash

C. debit Notes Payable and Interest Expense; credit Cash

D. debit Cash; credit Notes Payable

2. The entry to record the issuance of common stock at a price above par includes a debit to

A. Common Stock

B. Paid-In Capital in Excess of ParCommon Stock

C. Cash

D. Organizational Expenses

3. If Dakota Company issues 1,500 shares of $6 par common stock for $75,000,

A. Paid-In Capital in Excess of Par will be credited for $9,000

B. Cash will be debited for $66,000

C. Paid-In Capital in Excess of Par will be credited for $66,000

D. Common Stock will be credited for $75,000

4. A corporation has 50,000 shares of $25 par stock outstanding that has a current market value of $120. If the corporation issues a 5-for-1 stock split, the par value of the stock after the split will be

A. $60

B. $24

C. $25

D. $5

5. If the market rate of interest is 8%, the price of 6% bonds paying interest semiannually with a face value of $500,000 will be

A. greater than $500,000

B. greater than or less than $500,000, depending on the maturity date of the bonds

C. less than $500,000

D. equal to $500,000