Question 1: Post Company issues 10,000 shares of $5 par value common stock for $20 a share. The accounting entry for this transaction is:
a) Debit cash -$200,000 and credit Common Stock - $200,000.
b) Debit cash -$50,000 and credit Common Stock - $50,000.
c) Debit cash -$200,000, debit Additional Paid in Capital - $50,000 and credit Common Stock - $200,000,
d) Debit cash -$200,000 and credit Common Stock - $50,000, credit Additional Paid in Capital - $150,000.
Question 2: Dividends become the liability of corporation:
a) On the date, the board of directors declares the dividend.
b) On the date of record.
c) On the date payment is made.
d) When favored dividends have not been paid.