The date on which a cash dividend becomes a binding legal obligation is on the A) payment date. B) last day of the fiscal year end. C) date of record. D) declaration date. Powers Corporation received a cash advance of $500 from a customer. As a result of this event, A) liabilities decreased by $500. B) equity increased by $500. C) assets increased by $500. D) Both assets and equity increased by $500. The balance in the prepaid rent account before adjustment at the end of the year is $12,000 and represents three months rent paid on December 1.The adjusting entry required on December 31 is: A) debit Prepaid Rent, $4.000: credit Rent Expense $4.000. B) debit Rent Expense, $12.000: credit Prepaid Rent, $12,000. C) debit Rent Expense. $4,000, credit Prepaid Rent, $4,000. D) debit Prepaid Rent, $8.000; credit Rent Expense, $8,000. Denson, Inc. has 10,000 shares of 5%. $100 par value, non-cumulative preferred stock and 40,000 shares of $1 par value common stock outstanding at December 31, 2017. There were no dividends declared in 2016. The board of directors declares and pays a $120,000 dividend in 2017. What is the amount of dividends received by the common stockholders in 2017? A) $0. B) $50,000. C) $70,000. D) $120,000. If Norben Company issues 6,000 shares of $5 par value common stock for $210,000, the account A) Paid-in Capital in Excess of Par Value will be credited for $180,000. B) Common Stock will be credited for $210,000. C) Cash will be debited for $180,000. D) Paid-in Capital in Excess of Par Value will be credited for $30,000