1. Jones Co. has the following accounts and amounts in its stockholders equity section of the balance sheet.

6% Preferred Stock, $100 par	$800,000
Common Stock, $5 par	200,000
Treasury Stock, $15 cost per share	30,000

What number of shares of common stock does Jones Co. have issued and outstanding?

Shares issued 40,000

Shares outstanding 40,000

Shares issued 48,000

Shares outstanding 40,000

Shares issued 40,000

Shares outstanding 38,000

Shares issued 42,000

Shares outstanding 44,000

2.

The stockholders equity of ABC Inc. includes:

Preferred Stock, 4%, $100 par value, cumulative, 30,000 shares authorized and 20,000 shares issued

Common stock, $2 par value, 100,000 shares authorized and 50,000 issued and outstanding

The board of directors declares and pays the annual dividend on the preferred stock and a $1 per share dividend on the common stock. This will cause:

A decrease in retained earnings of $130,000

A decrease in cash of $200,000.

A decrease in stockholders equity of $220,000

A decrease in cash of $50,000

3.

On December 1, 2012, Harris, Inc. had the following capital stock outstanding:

6% preferred stock, $50 par, cumulative	8,000 shares
Common Stock, $10 par	20,000 shares

Dividends were not declared or paid at all in 2010 and 2011. Cash dividends of $102,000 were declared in on December 31, 2012. The total amounts of cash dividends distributed to preferred and common stockholders in 2012 are:

Preferred: $51,000; Common: $51,000

Preferred: $68,000; Common: $34,000

Preferred: $72,000; Common: $30,000

Preferred: $84,000; Common: $18,000 4.

On December 1, 2012, Harris, Inc. had the following capital stock outstanding:

4% preferred stock, $100 par, cumulative	8,000 shares
Common Stock, $10 par	20,000 shares

Dividends were not declared or paid at all in 2011. Cash dividends of $102,000 were declared in on December 31, 2012. The total amounts of cash dividends distributed to preferred and common stockholders in 2012 are:

Preferred: $51,000; Common: $51,000

Preferred: $32,000; Common: $70,000

Preferred: $64,000; Common: $38,000

Preferred: $96,000; Common: $ 6,000

5.

The stockholders' equity section of the Blandings Co. balance sheet contains the following information:

4%, Preferred Stock, $100 par value, cumulative, 20,000 shares authorized and 5,000 shares issued

Common stock, $1 par value, 100,000 shares authorized and 20,000 issued and outstanding

The board of directors declares and pays the annual dividend on the preferred shares and a $2 per share dividend on the common share. This will cause:

A decrease in cash of $60,000.

A decrease in cash of $280,000.

A decrease in stockholders equity of $280,000

An increase in stockholders equity of $60,000.