Question : 157. West Company declared a $0.50 per share cash dividend. The : 1257677

157. West Company declared a $0.50 per share cash dividend. The company has 190,000 shares issued, and 10,000 shares in treasury stock. The journal entry to record the payment of the dividend is: A. Debit Retained Earnings $90,000; credit Common Dividends Payable $90,000. B. Debit Common Dividends Payable $95,000; credit Cash $95,000.C. Debit Retained Earnings $5,000; credit Common Dividends Payable $5,000.D. Debit Common Dividends Payable $90,000; credit Cash $90,000. E. Debit Retained Earnings $95,000; credit Common Dividends Payable $95,000.

158. Fetzer Company declared a $0.55 per share cash dividend. The company has 200,000 shares authorized, 190,000 shares issued, and 8,000 shares in treasury stock. The journal entry to record the payment of the dividend is: A. Debit Retained Earnings $104,500; credit Common Dividends Payable $104,500. B. Debit Common Dividends Payable $104,500; credit Cash $104,500.C. Debit Retained Earnings $100,100; credit Common Dividends Payable $100,100.D. Debit Common Dividends Payable $100,100; credit Cash $100,100. E. Debit Retained Earnings $110,000; credit Common Dividends Payable $110,000.

159. Fargo Company’s outstanding stock consists of 400 shares of noncumulative 5% preferred stock with a $10 par value and 3,000 shares of common stock with a $1 par value.  During the first three years of operation, the corporation declared and paid the following total cash dividends.

Year

Dividend Declared

2015

$20,000

2016

$6,000

2017

$32,000

The amount of dividends paid to preferred and common shareholders in 2015 is:A. $200 preferred; $19,800 common.B. $4,000 preferred; $16,000 common.C. $17,000 preferred; $3,000 common.D. $10,000 preferred; $10,000 common.E. $20,000 preferred; $0 common.

160. Halverstein Company’s outstanding stock consists of 7,000 shares of cumulative 5% preferred stock with a $10 par value and 3,000 shares of common stock with a $1 par value.  During the first three years of operation, the corporation declared and paid the following total cash dividends.

Year

Dividend Declared

2015

$0

2016

$6,000

2017

$32,000

The amount of dividends paid to preferred and common shareholders in 2016 is:A. $3,500 preferred; $2,500 common.B. $3,000 preferred; $3,000 common.C. $0 preferred; $6,000 common.D. $4,200 preferred; $1,800 common.E. $6,000 preferred; $0 common.

161. Prior to June 30, a company has never had any treasury stock transactions. A company repurchased 100 shares of its $1 par common stock on June 30 for $40 per share. On July 20, it reissued 50 of these shares at $46 per share. On August 1, it reissued 20 of the shares at $38 per share. What is the journal entry necessary to record the repurchase of stock on June 30? A. Debit Common Stock $4,000; credit Cash $4,000.B. Debit Common Stock $100; debit Treasury Stock $3,900; credit Cash $4,000.C. Debit Treasury Stock $3,900; debit Paid-in Capital, Treasury Stock $100; credit Cash $4,000.D. Debit Treasury Stock, Common $4,000; credit Cash $4,000.E. Debit Cash $4,000; credit Treasury Stock $4,000.

162. Prior to June 30, a company has never had any treasury stock transactions. A company repurchased 100 shares of its $1 par common stock on June 30 for $40 per share. On July 20, it reissued 50 of these shares at $46 per share. On August 1, it reissued 20 of the shares at $38 per share. What is the journal entry necessary to record the reissuance of treasury stock on July 20? A. Debit Common Stock $2,300; credit Cash $2,300.B. Debit Common Stock $20; debit Treasury Stock $2,290; credit Cash $2,300.C.  Debit Common Stock $2,300; credit Treasury Stock $2,000; credit Paid-In Capital, Treasury Stock $300.D. Debit Cash $2,300; debit Paid-in Capital, Treasury Stock $300; credit Treasury Stock $2,000.E. Debit Cash $2,300; credit Treasury Stock $2,300.

163. A corporation issued 2,500 shares of its no par common stock at a cash price of $11 per share. The entry to record this transaction would be: A. Debit Cash $27,500; credit Paid-in Capital in Excess of Par Value, Common Stock $2,500; credit Common Stock $25,000.B. Debit Cash $27,500; credit Common Stock $27,500.C. Debit Common Stock $27,500; credit Cash $27,500.D. Debit Treasury Stock $27,500; credit Cash $27,500.E. Debit Treasury Stock $2,500; debit Paid-in Capital in Excess of Par Value, Treasury Stock $25,000; credit Common Stock $27,500.

164. A corporation issued 5,000 shares of its no par common stock that was assigned a $1 stated value per share.  The issue price was $10 per share. The entry to record this transaction would be: A. Debit Cash $50,000; credit Paid-in Capital in Excess of Par Value, Common Stock $45,000; credit Common Stock $5,000.B. Debit Cash $50,000; credit Common Stock $50,000.C. Debit Common Stock $50,000; credit Cash $50,000.D. Debit Treasury Stock $50,000; credit Cash $50,000.E. Debit Common Stock $25,000; debit Paid-in Capital in Excess of Par Value, Common Stock $5,000; credit Common Stock $45,000.