Question : 81. The Sneed Corporation issues 10,000 shares of $50 par value : 1251370

81. The Sneed Corporation issues 10,000 shares of $50 par value preferred stock for cash at $70 per share.  The entry to record the transaction will consist of a debit to Cash for $700,000 and a credit or credits to 
A. Preferred Stock for $700,000.
B. Preferred stock for $500,000 and Paid-in Capital in Excess of Par Value—Preferred Stock for $200,000.
C. Preferred Stock for $500,000 and Retained Earnings for $200,000.
D. Paid-in Capital from Preferred Stock for $700,000.

82. Alma Corp. issues 1,000 shares of $10 par value common stock at $16 per share.  When the transaction is recorded, credits are made to: 
A. Common Stock $16,000.
B. Common Stock $10,000 and Paid-in Capital in Excess of Par Value $6,000.
C. Common Stock $10,000 and Paid-in Capital in Excess of Stated Value $6,000.
D. Common Stock $10,000 and Retained Earnings $6,000.

83. Nexis Corp. issues 1,000 shares of $15 par value common stock at $25 per share.  When the transaction is recorded, credits are made to: 
A. Common Stock $15,000 and Paid-in Capital in Excess of Par Value $10,000.
B. Common Stock $25,000 and Retained Earnings $15,000.
C. Common Stock $15,000 and Paid-in Capital in Excess of Stated Value $10,000.
D. Common Stock $25,000.

84. When Bayou 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 9,000 shares of stock at a price of $23 per share. 

The entry to record the above transaction would include a 
A. debit to Cash for $90,000
B. credit to Common Stock for $207,000
C. credit to Paid in Capital in Excess of Par for $117,000
D. debit to Common Stock for $90,000

85. On January 1, 20xx, Swenson Corporation had 40,000 shares of $10 par value common stock issued and outstanding.  All 40,000 shares had been issued in a prior period at $20.00 per share.  On February 1, 20xx, Swenson purchased 2,000 shares of treasury stock for $24 per share and later sold the treasury shares for $21 per share on March 1, 20xx.

The journal entry to record the purchase of the treasury shares on February 1, 20xx, would include a  
A. credit to Treasury Stock for $48,000.
B. debit to Treasury Stock for $48,000.
C. debit to a loss account for $6,000
D. credit to a gain account for $6,000.

86. The charter of a corporation provides for the issuance of 100,000 shares of common stock.  Assume that 60,000 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. $60,000
B. $5,000
C. $100,000
D. $55,000

87. The charter of a corporation provides for the issuance of 100,000 shares of common stock.  Assume that 45,000 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. $90,000
D. $100,000

88. 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.

89. 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.

90. Which of the following is the appropriate general journal entry to record the declaration of a cash dividends? 
A. Retained earnings
            Cash
B. Cash Dividends payable
            Cash
C. Paid-in capital
            Cash Dividends payable
D. Cash Dividends
            Cash Dividends Payable