problem 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.

problem 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.