Online Exam 2_02
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Part 1 of 1 – 70.0/ 100.0 Points
Question 1 of 20 5.0/ 5.0 Points
When stock is exchanged for noncash assets, __________.
A. debit the asset for prior book value; credit Common Stock for cash received
B. debit assets for market value; credit Common Stock for par value; if needed, credit Paid-in Capital in
Excess of Par
C. debit assets for market value; credit Common Stock for market value
D. debit assets for par value; credit Common Stock for par value
Question 2 of 20 5.0/ 5.0 Points
Sunrise Online issued 500 shares of its $10 common stock in exchange for equipment with a fair market value
of $7,500. The entry to record the transaction would include a __________.
A. debit to Equipment for $5,000
B. debit to Common Stock for $5,000
C. credit to Paid-in Capital in Excess of Par Value for $2,500
D. credit to Common Stock Subscribed for $5,000
Question 3 of 20 0.0/ 5.0 Points
Preferred stock that is given a right to share with the common stock in dividends in excess of a stated preferred
dividend rate is called __________.
A. nonparticipating
B. participating
C. cumulative
D. noncumulative
Question 4 of 20 0.0/ 5.0 Points
Alpha Corporation has 1,500 shares of $40 par, 7% cumulative preferred stock, and 2,200 shares of $10 par
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Online Exam 2_02
common stock. Alpha paid $10,000 in cash dividends including one-year dividends in arrears to preferred
stockholders. Common stockholders received __________.
A. $0
B. $220
C. $1,600
D. $5,800
Question 5 of 20 5.0/ 5.0 Points
Which of the following would normally not appear in the Stockholders’ Equity section of the balance sheet?
