6.Two years ago, Terry Wilson purchased a building for $210,000. This year, Wilson gave the building, which now has a current market value of $240,000, to Bonkers Corp. in exchange for 5,000 shares of $10-par common stock. Which journal entry by Bonkers correctly records the issuance of this stock?

	Accounts and Explanations	Debit	Credit
A.	Building	240,000
	Common Stock		50,000
	Paid-In Capital in Excess of ParCommon		190,000
B.	Building	210,000
	Common Stock		50,000
	Paid-In Capital in Excess of ParCommon		160,000
C.	Building	240,000
	Common Stock		240,000
D.	Building	210,000
	Common Stock		210,000

7.Dwayne Health Snacks has outstanding 6,000 shares of $3 par common stock, which was issued at $15 per share, and 2,000 shares of $10 par cumulative preferred stock, which was issued at par. Dwayne Health Snacks also has a deficit balance in Retained Earnings of $26,000. How much is Dwaynes total stockholders equity?

A. $66,000

B. $84,000

C. $110,000

D. $136,000

8.Ink Corporation has 10,000 shares of 5%, $20 par noncumulative preferred stock, and 37,000 shares of common stock outstanding. Ink declared no dividends in 2013. In 2014, Inkdeclares a total dividend of $54,000. How much of the dividends go to the common stockholders?

A. $54,000

B. $44,000

C. $34,000

D. None; it all goes to preferred stockholders.

9.Retained Earnings:

A. is decreased by a stock split.

B. represents an amount of cash available to pay shareholders.

C. represents the total amount of net income earned by the company during its existence.

D. can be subject to appropriation by a corporation's directors to limit dividends.

10.Stock splits:

A. increase the number of shares of stock issued.

B. decrease par value per share.

C. both A and B.

D. neither A nor B.