1. On June 30, the board of directors of Dive Inn, Inc., declared a cash dividend of $0.20 per share on its $2 par value, 100,000 common shares outstanding. The date of record is the close of business on July 7, payable July 31. The entry to record the payment of dividends on July 31 includes a ______. (Select all that apply.)

credit Cash $20,000

debit Dividends $200,000

credit Cash $200,000

There is no entry made on July 31.

credit Dividends $20,000

debit Dividends Payable $20,000

debit Dividends $20,000

2. Treasury Stock represents ______. (Select all that apply.)

stock issued in exchange for U.S. treasury stock

stock sold in excess of par value

the amount paid for stock reacquired and currently held in its treasury

a contra-equity account

stock issued in exchange for treasury bills

3 A bond's stated interest rate is ______. (Select all that apply.)

affected by the price investors pay for the bond

increased when the market price of the bond falls

used to determine Interest Expense

always expressed as an annual interest rate

used to calculate interest payments