1. ( SHOW WORK) If a corporation issues 4,000 shares of $5 par value common stock for $89,000, the journal entry would include a credit to:

A.Common Stock for $89,000.

B.Common Stock for $69,000.

C.Paidin Capital in Excess of Parlong dashCommon

for $89,000.

D.Paidin Capital in Excess of Parlong dashCommon

for $69,000.

2.If a corporation issues 3,000 shares of $1 par value common stock for $10,000, the journal entry would include a credit to:

A.Common Stock for $10,000.

B.Common Stock for $3,000.

C.Paidin Capital in Excess of

Parlong dashCommon

for $10,000.

D.Retained Earnings for $3,000.

3.Kunze Corporation has $1 par value Common Stock with 100,000 shares authorized and 25,000 shares issued. The journal entry to record Kunze's purchase of 4,000 shares of common stock at $3 per share would be:

A.debit Common Stock for $4,000, debit Paidin Capital in Excess of

Parlong dashCommon for 8,000 and credit Cash for $12,000.

B.debit Cash for $12,000, credit Common Stock for $4,000 and credit Paidin

Capital in Excess of Parlong dashCommon for $8,000.

C.debit Treasury Stock for $12,000 and credit Cash for $12,000.

D.debit Common Stock for 12,000 and credit Cash for $12,000.

4. On December 31 of the current year, Pilozzi Company has the following information available:

Common Stock	$5 million
Additional Paidin Capital	$4 million
Retained Earnings	$2million
Cash	$2 million
Investment in Trading Securities	$50,000

On December 31 of the current year, can the Board of Directors declare and pay a cash dividend of

$3 million?

A.Yes, if they can borrow some money, or liquidate some assets.

B.No, Cash and Retained Earnings are both below $3 million.

C.No, the cash balance is below $3 million.

D.No, Retained Earnings is below $3 million.