16. Kinza, Inc. has 1,000 shares of 6%, $100 par value, cumulative preferred stock and 10,000 shares of $2 par value common stock outstanding at December 31, 2019, and December 31, 2020. The board of directors declared and paid a $4,000 dividend in 2019. In 2020, $10,000 of dividends are declared and paid. What are the dividends received by the preferred and common shareholders in 2020?

Preferred Common

a. $14,000 $0

b. $8,000 $2,000

c. $10,000 $4,000

d. $0 $14,000

17. Sting Corporations December 31, 2020 balance sheet showed the following:

8% preferred stock, $10 par value, cumulative, 20,000 shares

authorized; 15,000 shares issued $ 150,000

Common stock, $10 par value, 2,000,000 shares authorized;

1,950,000 shares issued, 1,930,000 shares outstanding 19,500,000

Paid-in capital in excess of parpreferred stock 60,000

Paid-in capital in excess of parcommon stock 24,000,000

Retained earnings 7,650,000

Treasury stock (20,000 shares) 630,000

Stings total stockholders equity was

a. $51,990,000.

b. $43,710,000.

c. $51,360,000.

d. $50,730,000.

18. Roundhouse Company declared a 5% stock dividend when it had 100,000 shares of $1 par value common stock outstanding. The market price per common share was $8 per share when the dividend was declared. The entry to record this dividend declaration includes a credit to

a. Stock Dividends for $5,000.

b. Paid-in Capital in Excess of Par for $40,000.

c. Common Stock for $40,000.

d. Common Stock Dividends Distributable for $5,000.

19. At December 31, the stockholders equity of Magenta Company was as follow:

Common stock, $4 par value: 1,000,000 shares issued and 800,000 shares outstanding $3,200,000

Additional paid-in capital 800,000

Retained earnings 1,000,000

Treasury stock, (75,000 shares) (600,000)

Total stockholders equity $4,000,000

The book value per share of common stock is (rounded):

a. $4.00

b. $5.00

c. $5.75

d. $6.00

20. Green Corporation was organized on January 1, 2020, with authorized capital of 500,000 shares of $10 par value common stock. During 2020, Green issued 30,000 shares at $12 per share, purchased 3,000 shares of treasury stock at $13 per share, and sold 3,000 shares of treasury stock at $14 per share. What is the amount of additional paid-in capital at December 31, 2020?

a. $0

b. $3,000

c. $60,000

d. $63,000