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Match the Following Terms with the Descriptions and Definitions Below

Question 122

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Match the following terms with the descriptions and definitions below.

Premises:
Account used to record the declaration of a stock dividend.
Account used to record the excess of the reissue price of treasury stock over the initial cost of the treasury stock.
The account used to record the difference between the issue price of stock and its legal minimum price.
Account used to record the difference between the face value and proceeds when the market rate of interest is less than the face rate of interest.
Account used to record the difference between the face value and proceeds when the market rate of interest is greater than the face rate of interest.
Responses:
Stock Dividend Distributable
Discount on Notes Payable
Paid-in-Capital in Excess of Par
Paid-in-Capital from Treasury Stock Transactions
Premium on Bonds Payable

Correct Answer:

Account used to record the declaration of a stock dividend.
Account used to record the excess of the reissue price of treasury stock over the initial cost of the treasury stock.
The account used to record the difference between the issue price of stock and its legal minimum price.
Account used to record the difference between the face value and proceeds when the market rate of interest is less than the face rate of interest.
Account used to record the difference between the face value and proceeds when the market rate of interest is greater than the face rate of interest.
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