Question
11. 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
11. 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
12. 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
13. Sabas Company has 20,000 shares of $100 par, 2% cumulative preferred stock and 100,000 shares of $50 par common stock. The following amounts were distributed as dividends:
Year 1: 10,000
Year 2: 45,000
Year 3: 90,000
Determine the dividends per share for preferred and common stock for the first year.
A. $0.00 and $0.10
B. $2.00 and $0.00
C. $0.50 and $0.00
D. $0.50 and $0.10
14.Which of the following is the appropriate general journal entry to record the declaration of cash dividends?
A. Cash Dividends Payable
Cash
B. Cash Dividends
Cash Dividends Payable
C. Paid-In Capital
Cash Dividends Payable
D. Retained Earnings
Cash
15. 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
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