Question : 81. A company has 1,000 shares of $50 par value, 4.5% : 1256381

 

 

81. A company has 1,000 shares of $50 par value, 4.5% cumulative and nonparticipating preferred stock and 10,000 shares of $10 par value common stock outstanding. The company paid total cash dividends of $1,000 in its first year of operation. The cash dividend that must be paid to preferred stockholders in the second year before any dividend is paid to common stockholders is: A. $1,000B. $1,250C. $2,250D. $3,500E. $4,500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

82. A company’s board of directors votes to declare a total cash dividend of $25,000. The company has 2,500 shares of $1 par common stock and 400 shares of 4%, $200 par preferred stock outstanding. What is the total amount that will be paid to preferred shareholders? A. $1,000B. $22,500C. $400D. $3,200E. $25,000

 

83. A company has 200,000 shares of $1 par value common stock and 20,000 shares of 7%, $100 par, cumulative preferred stock outstanding. The balance in Retained Earnings account at the  of the year was $1,500,000 and one year’s dividends were in arrears. Net income for the current year was $2,000,000. If the company paid a dividend of $3 per share on its common stock, what is the balance in Retained Earnings account at the  of the year? A. $3,500,000B. $2,900,000C. $2,760,000D. $2,620,000E. $620,000

 

 

84. Stock that was reacquired by the company and is still held by the issuing corporation is called: A. Capital stockB. Treasury stockC. Redeemed stockD. Preferred stockE. Callable stock

 

 

85. Treasury stock is classified as: A. An asset account.B. A contra asset account.C. A revenue account.D. A contra equity account.E. A liability account.

 

 

86. The following data regarding its common stock were reported by a corporation: 

Authorized shares

20,000

Issued shares

15,000

Treasury shares

3,000

The number of outstanding shares is: A. 12,000B. 15,000C. 17,000D. 20,000E. 23,000

 

 

87. The following data has been collected about a company’s stockholders’ equity accounts: 

Common stock $10 par value 20,000 shares authorized and 10,000 shares issued

$100,000

Contributed capital in excess of par value, common stock

50,000

Retained earnings

25,000

Treasury stock, 1,000 shares

11,500

The treasury shares were all purchased at the same price. The cost per share of the treasury stock is: A. $1.15B. $1.28C. $11.50D. $10.50E. $10.00

 

 

88. Prior to June 1, a company has never had any treasury stock transactions. The company repurchased 100 shares of its common stock on June 1 for $5,000. On July 1, it reissued 50 of these shares at $52 per share. On August 1, it reissued the remaining treasury shares at $49 per share. What is the balance in the Contributed Capital, Treasury Stock, account on August 2? A. $5,050B. $2,600C. $100D. $50E. $0

 

 

 

 

89.  On August 31, 2013, Victory Corporation’s common stock is priced at $30 per share before any stock dividend or split, and the stockholders’ equity section of its balance sheet appears as follows.  Assume that the company declares and immediately distributes a 100% stock dividend.

 

 

Common stock—$7 par value, 95,000 shares authorized, 38,000 shares                       issued and outstanding

$ 266,000

 

 

 

Paid-in capital in excess of par value, common stock

100,000

 

 

 

Retained earnings

366,000

 

 

 

Total stockholders’ equity

$732,000

 

 

 

 

 

 

 

What is the total amount in the Common Stock account immediately after the stock dividend?

A. $266,000B. $532,000C. $1,140,000D. $874,000E. $0

 

 

90.  On August 31, 2013, Victory Corporation’s common stock is priced at $30 per share before any stock dividend or split, and the stockholders’ equity section of its balance sheet appears as follows.  Assume that the company declares and immediately distributes a 100% stock dividend.

 

 

Common stock—$7 par value, 95,000 shares authorized, 38,000 shares issued and outstanding

$ 266,000

 

 

 

Paid-in capital in excess of par value, common stock

100,000

 

 

 

Retained earnings

366,000

 

 

 

Total stockholders’ equity

$732,000

 

 

 

 

 

 

What is the total amount in the Retained Earnings account immediately after the stock dividend?

A. $266,000B. $532,000C. $366,000D. $100,000E. $0