Question : 61. A company issued 60 shares of $100 par value stock : 1256408

 

 

61. 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. $100B. $600C. $1,000D. $6,000E. $7,000

 

 

62. 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.

Land

60,000

 

Common Stock

 

50,000

Paid-In Capital in Excess of Par Value,

Common Stock

 

10,000

B.

Land

60,000

 

Common Stock

 

60,000

C.

Land

50,000

 

Common Stock

 

50,000

D.

Common Stock

50,000

 

Paid-In Capital in Excess of Par Value,

.Common Stock

10,000

 

Land

 

60,000

E.

Common Stock

60,000

 

Land

 

60,000

 

 

 

63. 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 parC. Represents profit from issuing stock.D. Represents capital gain on sale of stock.E. Is prohibited in most states.

 

 

64. The date the board of directors votes to pay a dividend is called the: A. Date of stockholders’ meetingB. Date of declarationC. Date of recordD. Date of paymentE. Liquidating date

 

 

65. A liquidating dividend is: A. Only declared when a corporation closes down.B. A return of a part 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.

 

 

66. A company’s board of directors votes to declare a cash dividend of $0.75 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. $375B. $4,125C. $7,125D. $7,500E. $11,250

 

 

67. A company declared a $0.50 per share cash dividend. 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.

Retained Earnings

4,000

 

Common Dividends Payable

 

4,000

B.

Common Dividends Payable

4,000

 

Cash

 

4,000

C.

Retained Earnings

4,500

 

Common Dividends Payable

 

4,500

D.

Common Dividends Payable

4,500

 

Cash

 

4,500

E.

Retained Earnings

5,000

 

Common Dividends Payable

 

5,000

 

68. Assume Garrison Guitar Company declared a $0.28 per share cash dividend and that the company has 25,000 shares authorized, 19,000 shares issued, and 12,000 shares of common stock outstanding. The general journal entry to record the dividend declaration is:  

A.

Retained Earnings

3,360

 

Common Dividends Payable

 

3,360

B.

Common Dividends Payable

5,320

 

Cash

 

5,320

C.

Retained Earnings

5,320

 

Common Dividends Payable

 

5,320

D.

Common Dividends Payable

3,360

 

Cash

 

3,360

E.

Retained Earnings

7,000

 

Common Dividends Payable

 

7,000

 

 

 

69. A corporation’s distribution of additional shares of its own stock to its stockholders without the receipt of any payment in return is called a: A. Stock dividendB. Stock subscriptionC. Premium on stockD. Discount on stockE. Treasury stock

 

 

70. A stock dividend transfers: A. Contributed capital to retained earnings.B. Retained earnings to contributed capital.C. Retained earnings to assets.D. Contributed capital to assets.E. Assets to contributed capital.

 

 

 

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