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Question 7 part a: A corporation issues 5,000 shares of common stock at a price of $20 per share. Suppose further that the par value per share of the common stock is $4. The journal entry to record this would include ________.

a		a debit to Common Stock for $80,000
b		a credit to Common Stock for $80,000
c		a debit to Treasury Stock for $80,000
d		a credit to Treasury Stock for $80,000
e		a credit to Paid-in Capital in Excess of Par Value for $80,000

b: A corporation pays a dividend of $80,000 that it had declared three weeks earlier. The journal entry to record this would include ________.

a		a debit to Dividends for $80,000
b		a credit to Dividends for $80,000
c		a debit to Dividends Payable for $80,000
d		a credit to Dividends Payable for $80,000
e		a debit to Cash for $80,000

c: Both trading securities and available-for-sale securities are reported on the balance sheet at fair value; which of the following are the correct statements regarding the reporting of unrealized holding gains and/or losses related to these two types of securities?

a		Unrealized holding gains/losses for trading securities are reported on the income statement as part of net income; those gains/losses related to available-for-sale securities are reported on the balance sheet as a component of shareholders' equity.
b		Unrealized holding gains/losses for trading securities are reported on the balance sheet as a component of shareholders' equity; those gains/losses related to available-for-sale securities are reported on the income statement as part of net income.
c		Unrealized holding gains/losses for both trading securities and available-for-sale securities are reported on the income statement as part of net income.
d		Unrealized holding gains/losses for both trading securities and available-for-sale securities are reported on the balance sheet as a component of shareholders' equity.

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