9. Chapter 11-Current Liabilities and Payroll Question MC #4
(Points: 3)
On June 8, Alton Co. issued an $90,000, 6%, 120-day note payable to Seller Co. What is the maturity value of the note?



1. $91,800

2. $90,450

3. $95,400

4. $90,000


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10. Chapter 13-Corporations: Organization, Stock Transactions, and Dividends Question MC #29
(Points: 3)
If Everly Company issues 1,000 shares of $5 par value common stock for $75,000, the account



1. Paid-in Capital in excess of Par Value will be credited for $5,000.

2. Common Stock will be credited for $75,000.

3. Cash will be debited for $70,000.

4. Paid-in Capital in excess of Par Value will be credited for $70,000.


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11. Chapter 13-Corporations: Organization, Stock Transactions, and Dividends Question MC #16
(Points: 3)
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 number of shares outstanding?



1. 45,000

2. 50,000

3. 40,000

4. 5,000


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12. Chapter 13-Corporations: Organization, Stock Transactions, and Dividends Question MC #27
(Points: 3)
Par value



1. is the monetary value assigned per share in the corporate charter.

2. represents the original selling price for a share of stock.

3. is established for a share of stock after it is issued.

4. represents what a share of stock is worth.


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13. Chapter 13-Corporations: Organization, Stock Transactions, and Dividends Question MC #40
(Points: 3)
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?



1. $100,000

2. $90,000

3. $80,000

4. $10,000


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14. Chapter 13-Corporations: Organization, Stock Transactions, and Dividends Question MC #60
(Points: 3)
The excess of cost over sales price of treasury stock should be debited to



1. Paid-In Capital from Sale of Treasury Stock

2. Gain from the sale of Treasury Stock

3. Organizational Expenses

4. Loss from Sale of Treasury Stock


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15. Chapter 13-Corporations: Organization, Stock Transactions, and Dividends Question MC #68
(Points: 3)
Which of the following would appear as a prior-period adjustment?



1. difference between the actual and estimated uncollectible accounts receivable

2. loss resulting from the sale of fixed assets

3. loss from the restructuring of assets

4. error in the computation of depreciation expense in the preceding year


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16. Chapter 13-Corporations: Organization, Stock Transactions, and Dividends Question MC #20
(Points: 3)
A corporation issues 1,500 shares of common stock for $ 32,000. The stock has a stated value of $10 per share. The journal entry to record the stock issuance would include a credit to Common Stock for



1. $32,000

2. $2,000

3. $15,000

4. $17,000


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17. Chapter 13-Corporations: Organization, Stock Transactions, and Dividends Question MC #35
(Points: 3)
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 $23.00 per share.

The entry to record the above transaction would include a



1. credit to Common Stock for $207,000

2. debit to Cash for $90,000

3. debit to Common Stock for $90,000

4. credit to Paid in Capital in Excess of Par- for $117,000


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18. Chapter 13-Corporations: Organization, Stock Transactions, and Dividends Question MC #17
(Points: 3)
The par value per share of common stock represents



1. the amount of dividends per share to be received each year

2. the minimum selling price of the stock established by the articles of incorporation.

3. an arbitrary amount established in the articles of incorporation

4. the minimum amount the stockholder will receive when the corporation is liquidated


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19. Chapter 16-Statement of Cash Flows Question MC #63
(Points: 3)
Rogers Company reported net income of $35,000 for the year. During the year, accounts receivable increased by $7,000, accounts payable decreased by $3,000 and depreciation expense of $8,000 was recorded.