Question :
101. Alliance Corp. issues 1,000 shares of $10 par value common : 1234192
101. Alliance Corp. issues 1,000 shares of $10 par value common stock at $14 per share. When the transaction is recorded, credits are made to:
A. Common Stock $14,000.
B. Common Stock $10,000 and Paid-in Capital in Excess of Par Value $4,000.
C. Common Stock $10,000 and Paid-in Capital in Excess of Stated Value $4,000.
D. Common Stock $10,000 and Retained Earnings $4,000.
102. The journal entry to issue 1,000,000 shares of $5 par common stock for $7.00 per share on January 2nd would be:
A. Jan 2 Cash 7,000,000
Common Stock 5,000,000
Paid-In Capital in Excess of Par – C/S 2,000,000
B. Jan 2 Cash 5,000,000
Common Stock 5,000,000
C. Jan 2 Cash 5,000,000
Paid-In Capital in Excess of Par – C/S 2,000,000
Common Stock 7,000,000
D. Jan 2 Cash 1,000,000
Common Stock 1,000.000
103. New Corp. issues 1,000 shares of $10 par value common stock at $15 per share. When the transaction is recorded, credits are made to:
A. Common Stock $10,000 and Paid-in Capital in Excess of Par Value $5,000.
B. Common Stock $10,000 and Retained Earnings $5,000.
C. Common Stock $10,000 and Paid-in Capital in Excess of Stated Value $5,000.
D. Common Stock $15,000.
104. When Bunyan Corporation was formed on January 1, 20xx, the corporate charter provided for 100,000 share of $10 par value common stock. The following transaction was among those engaged in by the corporation during its first month of operation: The corporation issued 8,000 shares of stock at a price of $22.00 per share.
The entry to record the above transaction would include a
A. debit to Cash for $80,000
B. credit to Common Stock for $176,000
C. credit to Paid in Capital in Excess of Par- for $96,000
D. debit to Common Stock for $80,000
105. The journal entry to issue 1,000,000 shares of $5 par common stock for $6.25 per share on January 2nd would be:
A. Jan 2 Cash 6,250,000
Common Stock 5,000,000
Paid-In Capital in Excess of Par – C/S 1,250,000
B. Jan 2 Cash 5,000,000
Common Stock 5,000,000
C. Jan 2 Cash 5,000,000
Paid-In Capital in Excess of Par – C/S 1,250,000
Common Stock 6,250,000
D. Jan 2 Cash 1,000,000
Common Stock 1,000,000
106. The charter of a corporation provides for the issuance of 100,000 shares of common stock. Assume that 50,000 shares were originally issued and 5,000 were subsequently reacquired. What is the amount of cash dividends to be paid if a $1 per share dividend is declared?
A. $50,000
B. $5,000
C. $100,000
D. $45,000
107. The charter of a corporation provides for the issuance of 100,000 shares of common stock. Assume that 40,000 shares were originally issued and 5,000 were subsequently reacquired. What is the amount of cash dividends to be paid if a $2 per share dividend is declared?
A. $80,000
B. $10,000
C. $70,000
D. $35,000
108. Which one of the following is not necessary in order for a corporation to pay a cash dividend?
A. Sufficient cash
B. Formal action of the board of directors
C. Declared dividends
D. Sufficient Retained earnings
109. The date on which a cash dividend becomes a binding legal obligation is on the
A. declaration date.
B. date of record.
C. payment date.
D. last day of the fiscal year end.
110. The cumulative effect of the declaration and payment of a cash dividend on a company’s financial statements is to
A. decrease total liabilities and stockholders’ equity.
B. increase total expenses and total liabilities.
C. increase total assets and stockholders’ equity.
D. decrease total assets and stockholders’ equity.
