13-Colson Inc. converts $600,000 of bonds sold at face value into 10,000 shares of common stock, par value $1. Both the bonds and the stock have a market value of $760,000. What amount should be credited to Paid-in Capital in Excess of ParCommon Stock as a result of the conversion? (a) $10,000. (b) $160,000. (c) $600,000. (d) $590,000 14-The market price of a bond is dependent on: (a) the payment amounts. (b) the length of time until the amounts are paid. (c) the interest rate. - (d) All of the above 15-On January 1, Hurley Corporation issues $500,000, 5-year, 12% bonds at 96 with interest payable on July 1 and January 1. The entry on July 1 to record payment of bond interest and the amortization of bond discount using the straight-line method will include a: (a) debit to Interest Expense $30,000. (b) debit to Interest Expense $60,000. (c) credit to Discount on Bonds Payable $4,000. (d) credit to Discount on Bonds Payable $2,000 16-A major disadvantage of a corporation is: (a) limited liability of stockholders. (b) additional taxes. (c) transferable ownership rights. (d) separate legal existence. 17-Which of the following statements is false? . (a) Ownership of common stock gives the owner a voting right. (b) The stockholders' equity, section begins with a paid-in capital section. (c) The authorization of capital stock does not result in a formal accounting entry. (d) Par value and market price of a company's stock are always the same. 18-ABC Corporation issues 1,000 shares of $10 par value common stock at $12 per share. In recording the transaction, credits are made to: (a) Common Stock $10,000 and Paid-in Capital in Excess of Stated Value $2,000. (b) Common Stock $12,000. (c) Common Stock $10,000 and Paid-in Capital in Excess of Par $2,000. (d) Common Stock $10,000 and Retained Earnings $2,000. 19-XYZ, Inc. sells 100 shares of $5 par value treasury stock at $13 per share. If the cost of acquiring the shares was $10 per share, the entry for the sale should include credits to: (a) Treasury Stock $1,000 and Paid-in Capital from Treasury Stock $300. (b) Treasury Stock $500 and Paid-in Capital from Treasury Stock $800. (c) Treasury Stock $1,000 and Retained Earnings $300. (d) Treasury Stock $500 and Paid-in Capital in Excess of Par $800. 20-Preferred stock may have priority over common stock except in: (a) dividends. (b) assets in the event of liquidation. (c) cumulative dividend features. (d) voting. 21-Entries for cash dividends are required on the: (a) declaration date and the payment date. (b) record date and the payment date. (c) declaration date, record date, and payment date. (d) declaration date and the record date