1. The stock dividends declaration on October 2, 2019 includes a debit to retained earnings at a. 400,000 c. 250,000 b. 440,000 d. 275,000 2. The cash dividends declaration on December 15, 2020 includes a debit to retained earnings at a. 349,500 c. 637,500 b. 351,000 d. 639,000 3. What is the credit to the share premium account as a result of the reissue of treasury shares on item b? a. None c. 180,000 b. 45,000 d. 135,000 4. What is the adjusted additional-paid in capital as of December 31, 2020? a. 5,545,000 c. 3,585,000 b. 5,505,000 d. 3,595,000 5. What is the adjusted retained earnings-total (appropriated and unappropriated) balance, as of December 31, 2020? a. 885,500 c. 597,500 b. 884,000 d. 596,000 6. What is the total stockholders' equity as of December 31, 2020? a. 27,397,500 c. 14,822,500 b. 27,442,500 d. 14,867,

On May, 2018 Joey Inc., was organized with 3,000,000 authorized shares of $10 par value ordinary shares, and 300,000 of its ordinary shares were issued for $3,300,000. Net income through December 31, 2018 was $525,000. On July 23, 2019, when the shares were selling at $13 per share, Joey Inc. issued 500,000 of its ordinary shares in exchange of a real estate properties which were fairly valued at $6,250,000. A 5% share dividend was declared on October 2, 2019, to shareholders of record on October 23, 2019. The market value of the ordinary shares was $11 per share on the declaration date. Joey Inc.'s net income for the year ended December 31, 2019 was $350,000. During 2020, Joey Inc. had the following transactions: a. In February, Joey Inc. reacquired 30,000 of its ordinary shares (originally issued in 2018) for $9 per share. b. In June, Joey Inc. sold 15,000 of its treasury shares for $12 per share. c. In September, each shareholder was issued (for each share held) one right to purchase two additional ordinary shares for $13 per share. The rights shall expire on December 31, 2020. d. In October, 250,000 rights issues were exercised when the market value of the ordinary shares was $14 per share. e. In November, 400,000 rights issues were exercised when the market value of the ordinary shares was $15 per share. f. On December 15, Joey Inc. declared its first cash dividend to shareholders of $0.30 per share, payable on January 10, 2021, to shareholders of record on December 31, 2020. g. On December 31, in accordance with the applicable law, Joey Inc. formally retired 10,000 of its treasury shares and had them revert to an unissued basis. The market value of the ordinary share was $16 per share on this date. h. Net income for 2020 was $800,000