Question :
52.A corporation has 1,000 shares of 10 percent, $50 par-value : 1169098
52.A corporation has 1,000 shares of 10 percent, $50 par-value preferred stock and 10,000 shares of $5 par-value common stock outstanding. If the board of the directors decides to distribute dividends totaling $40,000, the common stockholders will receive a dividend of
A. $5.00 a share.
B. $4.00 a share.
C. $3.50 a share.
D. $3.75 a share.
53.Andrews Corporation has 25,000 common shares authorized and 20,000 shares were issued and outstanding at year end. During the year, the corporation’s net income after taxes was $50,000. The policy of the corporation has been to declare dividends equal to 15% of its net income. What is the per share amount to be distributed to the common stock holders?
A. $0.30 a share.
B. $0.375 a share.
C. $3.00 a share.
D. $3.75 a share.
54.A corporation has 2,000 shares of 10 percent, $50 par-value preferred stock and 20,000 shares of $5 par-value common stock outstanding. If the board of the directors decides to distribute dividends totaling $80,000, the common stockholders will receive a dividend of
A. $3.50 a share.
B. $7.50 a share.
C. $8.00 a share.
D. $10.00 a share.
55.A corporation has 4,000 shares of 5 percent, $100 par-value preferred stock and 50,000 shares of $2 par-value common stock outstanding. If the board of the directors decides to distribute dividends totaling $100,000, the common stockholders will receive a dividend of
A. $1.00 a share.
B. $1.60 a share.
C. $2.00 a share.
D. $2.40 a share.
56.A corporation has 10,000 shares of 6 percent, $50 par-value cumulative preferred stock and 50,000 shares of $4 par-value common stock outstanding. Last year, no dividends were paid. This year, the board of directors decided to pay a dividend of $80,000. The common stockholders will receive a dividend of
A. $0.40 a share.
B. $1.00 a share.
C. $1.60 a share.
D. $2.00 a share.
57.A corporation has 10,000 shares of 6 percent, $50 par-value noncumulative preferred stock and 50,000 shares of $4 par-value common stock outstanding. Last year, no dividends were paid. This year, the board of directors decided to pay a dividend of $80,000. The common stockholders will receive a dividend of
A. $0.40 a share.
B. $1.00 a share.
C. $1.60 a share.
D. $2.00 a share.
58.Participating preferred stockholders
A. receive dividends only after common stockholders have been paid dividends.
B. receive preference dividend amounts as well as a share of other dividends paid.
C. receive cumulative dividends if dividends are passed in previous years.
D. give up their voting rights in exchange for dividend preferences.
59.Organization costs should be
A. treated as an operating expense when incurred.
B. debited to an intangible asset account when incurred and systematically charged to expense over a period of up to 40 years.
C. debited to an intangible asset account when incurred and carried at the original amount until the business ceases operations.
D. debited to an intangible asset account when incurred and carried at the original amount until the business begins to earn a profit.
60.The Preferred Stock account is shown in the
A. Assets section of the balance sheet.
B. Current Liabilities section of the balance sheet.
C. Long-Term Liabilities section of the balance sheet.
D. Stockholders’ Equity section of the balance sheet.
61.The Paid-in Capital in Excess of Par Value—Preferred Stock account would be shown in the
A. Assets section of the balance sheet.
B. Stockholders’ Equity section of the balance sheet.
C. Revenue section of the income statement.
D. Expense section of the income statement.
