stock. They are considering two alternatives for their new stock, which they are assuming will be issued at $8 per share. The alternatives are: (A) $5 par value and (B) no par, no stated value. If 120,000 shares are issued, what amount will be credited to the common stock account in each of these cases? (A) a. $120,000 b. $120,000 c. $960,000 d. $600,000 30. The directors of Chandler Corp. are trying to decide whether they should issue par or no par (B) $960,000 $960,000 $960,000 $960,000 31. Fison Corp. purchased 15,000 shares of its $2 par common stock at a cost of $13 per share on April 30, 2003. The stock was originally issued at $11 per share. The entry to record the purchase of the stock should include a debit to a. Common Stock for $30,000. b. Treasury Stock for $30,000. C. Common Stock for $195,000. d. Treasury Stock for $195,000. 32 What is the effect on total paid-in capital of a stock dividend and a stock split, respectively? Stock Split No effect No effect No effect Stock Dividend Increase No effect Decrease Decrease a. b. C. d. Decrease 33. Which of the following should be classified as an extraordinary item? a. Effects of major casualties not infrequent in the area b. Write-off of a significant amount of receivables c. Loss from the expropriation of facilities by a foreign government d. Losses due to a bitter, lengthy labor strike 34. A Discount on Bonds Payable account a. is a contra account to Bonds Payable. b. will cause interest expense to be less than cash interest payable. c. is increased over the life of the bond until it equals the bond's face value, d. is an adjunct account to Bonds Payable. 35. Which of the following would shorten the operating cycle causing an improvement in cash flows? A) Faster collection of accounts receivables. B) Selling inventory in a shorter period of time. c) Increasing the customers who paid cash to buy our goods. Di All of the above would shorten the operating cycle