1. Table 1

The following selected list of accounts with their normal balances was taken from the general ledger of Tudor Company as of December 31, 20X6:

Cash $173,500

Common stock, $1 par 190,000

Retained earnings 131,500

Paid-in capital in excess of par-preferred 35,000

Preferred stock, $100 par 500,000

Paid-in capital in excess of par-common 380,000

Refer to Table 1. The average issue price of a share of common stock was:

a) $1.00

b) $3.00

c) $1.90

d) cannot be determined using the given information

2. Table 1

The following selected list of accounts with their normal balances was taken from the general ledger of Tudor Company as of December 31, 20X6:

Cash $173,500

Common stock, $1 par 190,000

Retained earnings 131,500

Paid-in capital in excess of par-preferred 35,000

Preferred stock, $100 par 500,000

Paid-in capital in excess of par-common 380,000

.Refer to Table 1. The total paid-in capital as of December 31, 20X6, was:

a) $1,435,000

b) $956,000

c) $1,105,000

d) $1,336,500

3. Table 1

The following selected list of accounts with their normal balances was taken from the general ledger of Tudor Company as of December 31, 20X6:

Cash $173,500

Common stock, $1 par 190,000

Retained earnings 131,500

Paid-in capital in excess of par-preferred 35,000

Preferred stock, $100 par 500,000

Paid-in capital in excess of par-common 380,000

Refer to Table 1. The total stockholders equity as of December 31, 20X6 was:

a) $1,236,500

b) $1,410,000

c) $1,261,500

d) $1,435,000

4. The entry to record the declaration of a $.75 per share dividend on 12,500 outstanding shares of common stock requires a:

a) credit to paid-in capital in excess of par-common for $9,375

b) debit to dividends payable for $9,375

c) debit to retained earnings for $9,375

d) credit to retained earnings for $9,375

5. Dividends on cumulative preferred stock of $2,500 are in arrears for 20X4. During 20X5, the total dividends declared amount to $10,000. There are 6,000 shares of $10 par, 10% cumulative preferred stock outstanding and 10,000 shares of $5 par common stock outstanding. The total amount of dividends payable to each class of stock in 20X5 amounts to:

a) $5,000 to preferred, $5,000 to common

b) $6,000 to preferred, $4,000 to common

c) $8,500 to preferred, $1,500 to common

d) $10,000 to preferred, $0 to common

6. Dividends were not declared by the Tidewater Corporation in 20X3 or 20X4. During 20X5, total dividends declared amount to $20,000. There are 6,000 shares of $10 par, 10% cumulative preferred stock outstanding and 10,000 shares of $5 par common stock outstanding. The total amount of dividends payable to each class of stock in 20X5 amounts to:

a) $18,000 to preferred, $2,000 to common

b) $6,000 to preferred, $14,000 to common

c) $12,000 to preferred, $8,000 to common

d) $10,000 to preferred, $10,000 to common

7. The payment of a cash dividend previously declared:

a) increases assets

b) decreases equity

c) increases liabilities

d) decreases liabilities

8. The declaration of a dividend:

a) increases total liabilities

b) reduces total assets

c) increases total assets

d) increases total stockholders equity

9. Wizard Corporation has 20,000 shares of cumulative, 5%, $100 par, preferred stock outstanding as well as 100,000 shares of $3 par common stock. As of the beginning of this fiscal year, there were three years of dividends in arrears on the preferred stock. The board of directors wants to give the common stockholders a $1.25 dividend per share. The total dividends to be declared must be:

a) $225,000

b) $400,000

c) $400,000

d) $525,000

10. Table 3

Battle Corporation has 15,000 shares of 10%, $50 par, cumulative preferred stock outstanding and 25,000 shares of no-par common stock outstanding. At the end of the current year, Battle Corporation declares a dividend of $120,000. Dividends of $37,500 are in arrears as of January 1 of the current year.

Refer to Table 3. What is the dividend per share to preferred and common?

a) $7.50 to preferred, $.30 to common

b) $5.00 to preferred, $1.80 to common

c) $8.00 to preferred, $0 to common

d) $1.80 to preferred, $5.00 to common

11. Preferred stock that provides for the payment of preferred dividends that have been passed before dividends may be paid on common stock is called::

a) par preferred stock

b) equity preferred stock

c) participating preferred stock

d) cumulative preferred stock