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14) Brown Company has 100,000 shares of $5 par value common stock outstanding. During the year, Brown declared an 8% stock dividend when the market

14) Brown Company has 100,000 shares of $5 par value common stock outstanding. During the year, Brown declared an 8% stock dividend when the market price of the stock was $12 per share. Six months later, Brown declared a $.20 per share cash dividend. As a result of the dividends declared during the year, retained earnings decreased by?

15) Jersey, Inc. has outstanding 300,000 shares of $3 par common stock and 100,000 shares of no-par 5% preferred stock with a stated value of $8. The preferred stock is cumulative and nonparticipating. Dividends have been paid in every year except the past three years and the current year. Assuming that $150,000 will be distributed as a dividend in the current year, how much will the preferred stockholders receive?

16) On March 1, 2021, Texas Company issued 2,500 shares of its $5 par common stock and 6,000 shares of its $8 par preferred stock for a lump sum of $250,000. At this date Texas common stock was selling for $32 per share and the preferred stock for $24 per share. The amount of the proceeds allocated to Texas common stock should be?

17) On December 31, 2021, the stockholders equity section of Arizona, Inc., was as follows:

Common stock, par value $5: authorized 50,000 shares;

issued and outstanding 18,000 shares

Additional paid-in-capital $230,000

Retained earnings 450,000

On May 1, 2022, Arizona declared an 8% stock dividend, and accordingly issued additional shares, when the fair value of the stock was $14 per share. For the year ended December 31, 2022, Arizona generated net income of $80,000. The balance of Arizonas retained earnings as of December 31, 2022 should be?

18) Stock dividends and liquidated dividends are similar in that both do not change total stockholders equity. (True/False)

19) Federal unemployment insurance paid should be included in an employers payroll tax expense. (True/False)

20) A pending court case with a probable unfavorable outcome is an example of a contingent liability which should be disclosed on the balance sheet but does not require footnote disclosure. (True/False)

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