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18) The charter of a corporation provides for the issuance of 100,000 shares of common stock. Assume that 60,000 shares were originally issued and 5,000

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18) The charter of a corporation provides for the issuance of 100,000 shares of common stock. Assume that 60,000 shares were originally issued and 5,000 were subsequently reacquired. What is the amount of cash dividends to be paid if a $I per share dividend is declared? a) $60,000 b) $5,000 c) $100,000 d) $55,000 Use the following information for questions 19 & 20: A corporation purchased 10,000 shares of its $20 par common stock at $25 and subsequently sold 2,000 of the shares at S35. Assume there is a zero balance in the Paid-in Capital from Treasury Stock account prior to purchasing the 10,000 shares 19) The journal entry to record the purchase of the 10,000 shares of stock would be Debit, Treasury Stock $250,000; Credit, Cash $250,000 Debit, Treasury Stock $200,000; Debit, Paid-in Capital from Treasury Stock, S50,000; Credit, Cash, $250,000 Debit, Cash $250,000; Credit, Common Stock for $200,000; Credit Paid-in Capital in Excess of Par Value, $150,000 Debit,Cash, $250,000; Credit, Common Stock for $250,000 a) b) c) d) 20) The journal entry to record the sale of the 2,000 shares of stock would be a) Debit, Cash $70,000: Credit, Treasury Stock $70,000 Debit, Cash, $70,000; Credit, Treasury Stock $50,000; Credit, Paid-in Capital from Treasury Stock, $20,000 b) Debit, Cash $50,000; Credit Common Stock for $40,000; Credit Paid-in Capital in Excess of Par Value, $10,000 c) d) Debit Cash, $70,000, Credit, Common Stock for $70,000 21) A company with 10,000 authorized shares of $5 par common stock issued 6,000 shares at $13. Subsequently the company declared a 5% stock dividend on a date when the market price was $20 a share. What is the amount transferred from the retained earnings account to paid-in capital accounts as a result of the stock dividend? a) $1,500 b) $2,500 c) $6,000 d) $10,000 22) The Bonds Payable account and the Discount on Bonds Payable account have balances, respectively, of $250,000 and $20,000 at December 31, of the current year. On the balance sheet provided as of the same date the bonds will be presented at a carrying value of a) $250,000 b) $270,000 c) $230,000 d) $125,000 23) If 6% bonds with a face value of$200,000 are issued at 90, the amount of cash received by the corporation issuing them is: a) $90,000 b) $180,000 c) $100,000 d) $110,000

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