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are distributions of a corporation's earnings to stockholders. a. Profits b. Revenues c. Stocks d. Dividends d 2. A debit balance in Retained Earnings is

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are distributions of a corporation's earnings to stockholders. a. Profits b. Revenues c. Stocks d. Dividends d 2. A debit balance in Retained Earnings is called a. deficit b. surplus c. net loss d. None of these are correct. 1. If the stock is issued for a price that is more than its stated price, the stock is said to be sold at a. premium b. discount c. par value d. None of these are correct 2. A joumal entry to record the issuance of preferred stock above par would include a a credit to Cash b. credit to Pald-In Capital in excess of Par c. debit to Preferred Stock d. debit to Paid-In Capital in excess of Par this transaction would 3. On March 10, Barney Corporation issued for cash 10,000 shares of no-par common stock at $40. The journal entry to recor Include a a. debit to Cash for $100,000 b. credit to Cash for $400,000 C. credit to Common Stock for $400,000 d. None of these are correct. 1. The is the date the board of directors formally authorizes the payment of the dividend. a. declaration date b. record date c. payment date d. None of these are correct. a 2. A stock dividend the assets, liabilities, or total stockholders' equity of a corporation. a. does not change b. Increases c. decreases d. None of these are correct. 3. The declaration date journal entry for a cash dividend would include a. a debit to Cash b. a credit to Cash c. a credit to Cash Dividends Payable d. no entry is needed on this date 1. A $20 par value stock in a 2:1 stock split will yield a new par value of a. $40 b. $30 c. $10 d. None of these are correct. 1. On February 10, the corporation purchases back 2,000 shares of its own common stock for 450 per share. The entry to record the purchase would include a a. debit to Cash for $100,000 b. credit to Treasury Stock for $100,000 c. debit to Treasury Stock for $100,000 d. debit to Common Stock for $100,000 2. A corporation may reacquire its own stock for which of the following reasons? a. To provide shares for resale to employees. b. To reissue as bonuses to employees. To support the market price of the stock. d. All of these are correct

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