I.M. Rich Corporation has declared a 30% stock dividend on 400,000 shares of $5 par value common stock outstanding. Market price per common share on this date was $10. What is the amount of retained earnings capitalized with this transaction? Group of answer choices $120,000 There is no capitalization of retained earnings with this type of transaction. None of the choices are correct. $600,000 $1,200,000

J & L Corporation sells $100,000, 10%, 10-year bonds for 97 on January 1. Compute the semiannual interest expense recorded on July 1 using the interest method. The market rate is 12%.

Group of answer choices

$11,640

$10,000

None of the choices are correct.

$20,000

$5,820

The S & B Company issued 120 shares of its $10 par value stock for $11 per share. The entry to record the receipt of cash and issuance of the stock would include:

Group of answer choices

a credit to Paid-in Capital in Excess of Par Value for $120.

a debit to Cash for $1,200.

a credit to Common Stock for $1,080.

None of the choices are correct.

a debit to Discount on Common Stock for $120.

Z Corp issued a 10%, $400,000, 8-year bond at 104. The entry to record the issuance of the bonds is to:

Group of answer choices

debit Cash $400,000; credit Bonds Payable $400,000.

debit Cash $400,000; debit Premium on Bonds Payable $16,000; credit Bonds Payable $416,000.

debit Cash $416,000; credit Bonds Payable $400,000; credit Premium on Bonds Payable $16,000.

debit Cash $416,000; credit Bonds Payable $416,000.

None of the choices are correct.