Question :
11) R&R Heating, Inc. has 350,000 shares of $3-par common : 1232216
11) R&R Heating, Inc. has 350,000 shares of $3-par common stock outstanding. They have declared a 5% stock dividend. The current market price of the common stock is $7.50/share. The amount that will be credited to common stock on the date of declaration is:
A) $ 52,500.
B) $131,250.
C) $ 78,750.
D) $183,750.
12) Valley Marine, Inc. has 200,000 shares of $5-par common stock outstanding. They have declared a 10% stock dividend. The current market price of the common stock is $11/share. The amount that will be debited to Retained Earnings on the date of declaration is:
A) $100,000.
B) $320,000.
C) $220,000.
D) $120,000.
13) Valley Marine, Inc. has 200,000 shares of $5-par common stock outstanding. They have declared a 10% stock dividend. The current market price of the common stock is $11/share. The amount that will be credited to Common Stock on the date of declaration is:
A) $100,000.
B) $320,000.
C) $220,000.
D) $120,000.
14) Allied Industries, Inc. has 250,000 shares of $7-par common stock outstanding. They have declared a 7% stock dividend. The current market price of the common stock is $11/share. The amount that will be credited to Paid-in Capital in Excess of Par Common Stock on the date of declaration is:
A) $122,500.
B) $192,500.
C) $ 70,000.
D) $315,000.
15) Arc Electric, Inc. has 400,000 shares of $10-par common stock outstanding. They have declared a 5% stock dividend. The current market price of the common stock is $18/share. The amount that will be credited to Paid-in Capital in Excess of Par Common Stock on the date of declaration is:
A) $560,000.
B) $160,000.
C) $200,000.
D) $360,000.
16) Cody’s Western Wear has 2,000 shares of $10 par common stock outstanding. During the current year, the company distributed a 10% stock dividend. The market value of the stock at that time was $16/share. After the distribution, Cody’s total stockholders’ equity should increase or decrease by:
A) ($3,200).
B) $2,000.
C) $1,200.
D) $ 0.
17) Which of the following would cause the decrease of the par value of a company’s stock?
A) Cash dividend
B) Stock split
C) Stock dividend
D) Sale of additional stock
18) Before a 3-for-1 stock split, the shares outstanding were 5,000 shares at $12 par. After the split, what was the par value and number of shares?
A) 15,000 shares and $12/share
B) 20,000 shares and $6/share
C) 15,000 shares and $4/share
D) 5,000 shares and $48/share
19) Before a 2-for-1 stock split, the shares outstanding were 40,000 shares at $50 par. After the split, what was the par value and number of shares?
A) 80,000 shares and $25/share
B) 20,000 shares and $100/share
C) 20,000 shares and $25/share
D) 80,000 shares and $100/share
20) Before a 5-for-3 stock split, the shares outstanding were 45,000 shares at $15 par. After the split, what was the par value and number of shares?
A) 75,000 shares and $25/share
B) 75,000 shares and $9/share
C) 27,000 shares and $25/share
D) 27,000 shares and $9/share
