Question : 121. A corporation issued 6,000 shares of its $10 par value : 1225259

121. A corporation issued 6,000 shares of its $10 par value common stock in exchange for land that has a market value of $84,000. The entry to record this transaction would include: 

A. A debit to Common Stock for $60,000.

B. A debit to Land for $60,000.

C. A credit to Land for $60,000.

D. A credit to Paid-in Capital in Excess of Par Value, Common Stock for $24,000.

E. A credit to Common Stock for $84,000.

122. A corporation issued 300 shares of its $5 par value common stock in payment of a $1,800 charge from its accountant for assistance in filing its charter with the state. The entry to record this transaction will include: 

A. A $1,800 credit to Common Stock.

B. A $1,500 debit to Organization Expenses.

C. A $300 credit to Paid-in Capital in Excess of Par Value, Common Stock.

D. A $1,800 debit to Legal Expenses.

E. A $1,800 credit to Cash.

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

A. $100.

B. $600.

C. $1,000.

D. $6,000.

E. $7,000.

124. A company issued 60 shares of $100 par value 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.

125. A corporation issued 5,000 shares of $10 par value common stock in exchange for some land with a market value of $60,000. The entry to record this exchange is: 

A. Debit Land $60,000; credit Common Stock $50,000; credit Paid-In Capital in Excess of Par Value, Common Stock $10,000.

B. Debit Land $60,000; credit Common Stock $60,000.

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 $10,000; credit Land $60,000.

E. Debit Common Stock $60,000; credit Land $60,000.

126. A premium on common stock: 

A. Is the amount paid in excess of par by purchasers of newly issued stock.

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.

127. The date the directors vote to 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.

128. A liquidating dividend is: 

A. Only declared when a corporation closes down.

B. A return of a portion of the capital contributed by stockholders.

C. Not allowed under federal law.

D. Only paid in assets other than cash.

E. Only paid in shares of stock.

129. 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.

130. A company’s board of directors votes to declare a cash dividend of $.75 per share. 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.