5. If $630,000 of 10% bonds are issued at 94, the amount of cash received from the sale is

a. $630,000

b. $567,000

c. $693,000

d. $592,200

1. If Dakota Company issues 2,600 shares of $9 par common stock for $57,200,

a. Cash will be debited for $23,400.

b. Common Stock will be credited for $57,200.

c. Paid-In Capital in Excess of Par will be credited for $33,800.

d. Paid-In Capital in Excess of Par will be credited for $23,400.

2.Bonds that are subject to retirement prior to maturity at the option of the issuer are called

a. options

b. early retirement bonds

c. debentures

d. callable bonds

6.Anderson Co. issued a $47,424, 60-day, discounted note to National Bank. The discount rate is 12%. At maturity, assuming a 360-day year, the borrower will pay:

a. $41,733

b. $47,424

c. $48,372

d. $46,476

10. Sneed Corporation issues 12,000 shares of $45 par preferred stock for cash at $64 per share. The entry to journalize the transaction will consist of a debit to Cash for $768,000 and a credit or credits to

a. Preferred Stock for $540,000 and Retained Earnings for $228,000

b. Preferred Stock for $768,000

c. Preferred Stock for $540,000 and Paid-In Capital in Excess of ParPreferred Stock for $228,000

d. Paid-In Capital from Preferred Stock for $768,000