19-21 only

16. Which of the following regarding dividends is false? A. Dividends represent a distribution of profits to owners Cash dividends paid to owners reduce net income B. C. Stock dividends reduce retained earnings. None of the above statements are false k Corporation has issued 200,000 shares of common stock and holds 10,000 shares in treasury. its charter authorized the issuance of 400,000 shares. The company has declared and paid a dividend of $1 per share of common stock. What it the total amount of dividend paid to common stockholders? A. $10,000 B. $200,000 C $400,000 D. $190,000 A company issued 50,000 share of common stock with a par value of $1 per share. The stock sold for $16 per Which of the following statements regarding the journal entry to record this event is true? Common stock account must be credited by $800,000. Additional Paid-in Capital account must be credited by $750,00o. C. Retained earnings account must be credited by $800,000 D. Treasury Stock account must be credited by $800,000. 19. Which of the following dates regarding dividend declaration and payment requires a journal entry? A. Declaration date B. Record date C Payment date Both A and C require journal entries D. E. All three dates require journal entries. Which of the following is false about a 2-for-1 stock split? A. Number of shares outstanding will double upon issuance of new shares. B. Stock price per share drops by half. C. The net worth of investors in the company doubles immediately following the stock split. D. The par value of the stock must be reduced by half following the split 20. 21. Assume XYZ Company has the following stock outstanding: Preferred stock: 8 percent, $20 par, 2,000 shares Common stock: $1 par, 18,000 shares Preferred stock come with cumulative preference, In 2017 XYZ Corp. declared a total of $15,000 divider before the end of the year. The Company had not paid any dividends in 2015 and 2016. All dividends b been paid. How much dividends, in total, will common stockholders receive? A. $15,000 B. $11,800 C. $13,500 D. $5,400 E. None of the above