1) Beng Company has 30,000 shares of $1 par common stock issued and outstanding. The company also has 5,000 shares of $100 par 5% noncumulative preferred stock outstanding. The company did not pay the preferred dividends in 2019. On December 1, 2020 the companys board of directors declared that $250,000 will be paid as dividend on January 17, 2021. What amount of dividends must the company pay the preferred shareholders? *

a- $100,000

b- $75,000

c- $50,000

d- $25,000

2) The maturity date of a 7-month interest bearing note dated January 31, 2020 is *

a- June 30, 2020

b- July 31, 2020

c- August 31, 2020

d- September 30, 2020

3) HTC Company is incorporated on January 1, 2018. During its first year, the corporation issued 20,000 shares of $10 par value preferred stock and 300,000 shares of $1 par value common. At December 31, 2018, the company declared $50,000 cash dividend to be paid on January 13, 2019. The record on payment date will include: *

a- Debit Dividend Payable

b- Credit Dividend Payable

c- Debit Cash Dividend

d- Credit Cash Dividend