Question 1: Fenway Company sells 1,000 shares of treasury stock for $32,000. The shares had been previously acquired for $24,000. The $8,000 received over cost should be credited to
a. an asset account.
b. a paid-in capital account.
c. a revenue account.
d. retained earnings.
Question 2: The X Company has the following stock outstanding:
6% Preferred stock, $100 par value, cumulative $300,000
Common stock, $50 par value $600,000
Preferred stock dividends are in arrears for 2002 and 2003. If the company declares and pays $50,000 in dividends in 2004, the amount received by the preferred stockholders would be
a. $36,000.
b. $18,000.
c. $54,000.
d. $50,000.