14.

South Beach Apparel issued 18,000 shares of $3 par value for $15 per share. What is true about the journal entry to record the issuance?

Credit Common Stock $270,000

Credit Additional Paid-In Capital $216,000

Debit Common Stock $54,000

Credit Cash $270,000

15.

Over the first four years of the company's life, it earned the following net income (loss): $6,000; $3,000; $7,000, and ($2,000). If the company's ending retained earnings is $10,000 after year 4, what is the average amount of dividends paid per year?

$0

$14,000

$4,000

$1,000

16.

A building was purchased for $68,500. The asset has an expected useful life of 8 years and depreciation expense each year is $4,000 using the straight-line method. What is the residual value of the building?

$0

$8,562

$36,500

$13,562

17.

Fashion, Inc. had a Retained Earnings balance of $13,000 at December 31, 2015. The company had an average income of $7,500 over the next 2 years, and an ending Retained Earnings balance of $14,000 at December 31, 2017. What was the total amount of dividends paid over the last two years?

$15,500

$14,000

$17,000

$13,250