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6. Treasury Stock (T/S) is A) Stock issued by the U.S. Treasury Department. B) Other Corporate Stock purchased by a corporation and held as an

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6. Treasury Stock (T/S) is A) Stock issued by the U.S. Treasury Department. B) Other Corporate Stock purchased by a corporation and held as an investment in its treasury C) Corporate Stock issued by the Treasurer of a company. D) a Corporation's own stock which has been reacquired but not retired 7. Cole Corporation issues 10,000 shares of $50 par value Preferred Stock (P/S) for cash at S60 per share. The entry to record the transaction will consist of a Debit (DR) to Cash to S600,000 and a credit (CR) or credits to A) Preferred Stock for $600,000. B) Preferred Stock for $500,000 and Paid-in Capital in Excess of Par Value (APIC)-Preferred Stock for $100,000. C) Common Stock for $750,000 and Paid-in Capital from Common Stock for $100,000. D) Paid-in Capital (APIC) from Preferred Stock for $600,000. 8. Nagen Company had these transactions pertaining to stock investments: Feb. 1 Purchased 3,000 shares of Horton Company (10%, Cost Method) for $49,800 cash plus brokerage fees of $1,200 June 1 Received cash dividends of S2 per share on Horton stock Oct. 1 Sold 1,200 shares of Horton stock for $24,000 less brokerage fees of $600. The entry to record the purchase of the Horton stock would include a A) debit to Stock Investments for $49,800. B) credit to Cash for $49,800. C) debit to Stock Investments for $51,000. D) debit to Investment Expense for $1,200. 9. Nagen Company had these transactions pertaining to stock investments: Purchased 3,000 shares of Horton Company (10% Cost Method) for $49,800 cash Feb. 1 E plus brokerage fees of $1,200. IReceived eash dividends of $2 per share on Horton stock June 1 Oct. 1 Sold 1,200 shares of Horton stock for $24,00 less brokerage fees of $600. The entry to record the receipt of the dividends on June 1 would include a A) debit to Stock Investments for $6,000. B) credit to Dividend Revenue for $6,000. C) debit to Dividend Revenue for $6,000. D) credit to Stock Investments for $6,000

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