poration issues bonds with a stated rate less than the market rate. QUESTION 10 Kaldi Company has 20,000 shares of $10 par value, 5% cumulative preferred stock and 200,000 shares of $20 par value common sto company paid total cash dividends of $8,000 in its first year of operation. The cash dividend that must be paid to preferred stockhol year before any dividend is paid to common stockholders is: A. $10,000. B. $8,000. C. $12,000. D. $2,000. QUESTION 11 Mena Company was established on January 1. The corporate charter authorized 1,000,000 shares of $10 par value common stock. Dur month of opration, the corporation issued 400 shares to its attorneys in payment of a $7,000 charge for drawing up the articles of inco entry to record this transaction would include: A. A debit to Paid-in Capital in Excess of Par Value, Common Stock for $3,000. B. A credit