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1. A company issued 165 shares of $100 par value common stock for $17,500 cash. The total amount of paid-in capital is:

Multiple Choice

$100.

$1,000.

$1,650.

$17,500.

$16,500.

2.

A corporation issued 6,200 shares of $10 par value common stock in exchange for some land with a market value of $94,000. The entry to record this exchange is:

Multiple Choice

Debit Land $94,000; credit Common Stock $62,000; credit Paid-In Capital in Excess of Par Value, Common Stock $32,000.

Debit Land $94,000; credit Common Stock $94,000.

Debit Land $62,000; credit Common Stock $62,000.

Debit Common Stock $62,000; debit Paid-In Capital in Excess of Par Value, Common Stock $32,000; credit Land $94,000.

Debit Common Stock $94,000; credit Land $94,000.

3.

Fargo Company's outstanding stock consists of 600 shares of noncumulative 5% preferred stock with a $10 par value and 3,200 shares of common stock with a $1 par value. During the first three years of operation, the corporation declared and paid the following total cash dividends.

	Dividend Declared
year 1	$	22,000
year 2	$	5,000
year 3	$	31,000

The amount of dividends paid to preferred and common shareholders in year 1 is:

Multiple Choice

$300 preferred; $21,700 common.

$6,000 preferred; $16,000 common.

$19,0000 preferred; $3,000 common.

$11,000 preferred; $11,000 common.

$22,000 preferred; $0 common.

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