Question : 117.A company issued 60 shares of $100 par value common : 1258359

117.A company issued 60 shares of $100 par value common stock for $7,000 cash. The total amount of paid-in capital in excess of par is:    

A.$100.

B.$600.

C.$1,000.

D.$6,000.

E.$7,000.

118.A corporation issued 5,000 shares of $10 par value common stock in exchange for some land with a market value of $70,000. The entry to record this exchange is:   

A.Debit Land $70,000; credit Common Stock $50,000; credit Paid-In Capital in Excess of Par Value, Common Stock $20,000.

B.Debit Land $70,000; credit Common Stock $70,000.

C.Debit Land $50,000; credit Common Stock $50,000.

D.Debit Common Stock $50,000; debit Paid-In Capital in Excess of Par Value, Common Stock $20,000; credit Land $70,000.

E.Debit Common Stock $70,000; credit Land $70,000.

119.A premium on common stock:    

A.Occurs when a corporation sells its stock for more than par or stated value.

B.Is the difference between par value and issue price when the amount paid is below par.

C.Represents profit from issuing stock.

D.Represents capital gain on sale of stock.

E.Is prohibited in most states.

120.The date the directors vote to declare and pay a dividend is called the:   

A.Date of stockholders’ meeting.

B.Date of declaration.

C.Date of record.

D.Date of payment.

E.Liquidating date.

121.A liquidating dividend is:   

A.Only declared when a corporation closes down.

B.A return of a portion of the original investment back to the stockholders.

C.Not allowed under federal law.

D.Only paid in assets other than cash.

E.Only paid in shares of stock.

122.A liability for dividends exists:   

A.When cumulative preferred stock is sold.

B.On the date of declaration.

C.On the date of record.

D.On the date of payment.

E.For dividends in arrears on cumulative preferred stock.

123.A company’s board of directors votes to declare a cash dividend of $0.75 per share of common stock. The company has 15,000 shares authorized, 10,000 issued, and 9,500 shares outstanding. The total amount of the cash dividend is:    

A.$10,250.

B.$14,625.

C.$7,125.

D.$7,500.

E.$11,250.

124.A company’s board of directors votes to declare a cash dividend of $1.00 per share on its 12,000 common shares outstanding. The journal entry to record the declaration of the cash dividend is:   

A.Debit Dividend Expense $12,000; credit Cash $12,000.

B.Debit Dividend Expense $12,000; credit Common Dividend Payable $12,000.

C.Debit Common Dividend Payable $12,000; credit Cash $12,000.

D.Debit Retained Earnings $12,000; credit Common Dividend Payable $12,000.

E.Debit Common Dividend Payable $12,000; credit Retained Earnings $12,000.

125.A company’s board of directors votes to declare a cash dividend of $1.00 per share on its 12,000 common shares outstanding. The journal entry to record the payment of the cash dividend is:   

A.Debit Dividend Expense $12,000; credit Cash $12,000.

B.Debit Dividend Expense $12,000; credit Common Dividend Payable $12,000.

C.Debit Common Dividend Payable $12,000; credit Cash $12,000.

D.Debit Retained Earnings $12,000; credit Common Dividend Payable $12,000.

E.Debit Common Dividend Payable $12,000; credit Retained Earnings $12,000.

126.Hutter Corporation declared a $0.50 per share cash dividend on its common shares. The company has 20,000 shares authorized, 9,000 shares issued, and 8,000 shares of common stock outstanding. The journal entry to record the dividend declaration is:   

A.Debit Retained Earnings $4,000; credit Common Dividends Payable $4,000.

B.Debit Common Dividends Payable $4,000; credit Cash $4,000.

C.Debit Retained Earnings $4,500; credit Common Dividends Payable $4,500.

D.Debit Common Dividends Payable $4,500; credit Cash $4,500.

E.Debit Retained Earnings $10,000; credit Common Dividends Payable $10,000.