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

Accounting

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.

Continue to order Get a quote

July 1, 2023

61.When there is a shortage in a market, prices are likely to:

A. Fall because buyers do not wish to buy as much as sellers want to sell.

B. Rise because some buyers will offer to pay a higher price.

C. Fall because sellers are likely to reduce their production if prices rise.

D. Rise because the government will put a price ceiling in place.

62.If a market shortage exists:

A. The invisible hand will work to reduce the price.

B. The only solution is for the government to raise the price.

C. Producers will compete for customers by reducing prices.

D. Consumers will compete for the product by offering to pay more.

63.A market surplus occurs when:

A. People cannot buy the amount of goods and services that they are willing and able to buy.

B. The price is less than the equilibrium price.

C. The quantity supplied exceeds the quantity demanded at a given price.

D. There is a price ceiling.

64.When there is a surplus in a market, prices are likely to fall because:

A. Buyers do not wish to buy as much as sellers want to sell.

B. Some buyers will offer to pay a higher price, initiating a move up the supply curve.

C. Sellers are likely to increase their production.

D. Buyers will wait for the government to establish a price floor.

65.If a market surplus exists:

A. The only resolution is for the government to set the price.

B. Consumers will compete for the product buy offering to pay more.

C. Producers will compete for customers by reducing prices.

D. The equilibrium price is equal to the price ceiling.

66.If demand is constant, a decrease in the supply of gasoline will cause the equilibrium price:

A. To rise and quantity to fall.

B. And quantity both to rise.

C. To fall and quantity to rise.

D. And quantity both to fall.

67.If demand is constant, a leftward shift in the supply curve will result in:

A. A decrease in equilibrium quantity and a lower equilibrium price.

B. An increase in equilibrium quantity and a lower equilibrium price.

C. A decrease in equilibrium quantity and a higher equilibrium price.

D. An increase in equilibrium quantity and a higher equilibrium price.

68.The price of chocolate candy bars rises. This could be due to:

A. A decrease in the wage rate paid to workers in the candy bar factories.

B. A decrease in the cost of chocolate, which is used to produce candy bars.

C. A subsidy by the federal government for the producers of chocolate candy bars.

D. A decrease in the number of chocolate candy bar producers.

69.If demand is unchanged, a rightward shift in the supply curve for plasma TVs will cause:

A. A decrease in equilibrium quantity and a higher equilibrium price.

B. An increase in equilibrium quantity and a higher equilibrium price.

C. An increase in equilibrium quantity and a lower equilibrium price.

D. A decrease in equilibrium quantity and a lower equilibrium price.

70.Which of the following would cause a decrease in the price of automobiles?

A. A technological advance in automobile manufacturing.

B. An increase in the wages paid to automobile assembly line workers.

C. A decrease in the cost of gasoline.

D. An increase in the number of buyers.