1 A corporation has 22,000 $9 00 preferred shares outstanding with a stated value of $2,000,000 Also, there are 22,000 common shares outstanding If a $350,000 dividend is paid, how much goes to the preferred shareholders A $0 B $198,000 C $350,000 D $120,000 E $320,000 2 The term outstanding shares refers to the maximum number of shares a corporation is allowed to distribute to shareholders True False 3 A corporation has 15,000 $ 6 00 preferred shares outstanding with a stated value of $3,000,000 Also, there are 15,000 common shares outstanding If a $300,000 dividend is paid, what is the amount of dividends per share on common shares A $ 6 00 B $ 14 00 C $ 8 00 D $ 15 00 E None of the above 4 When accounting for a stock dividend, Retained Earnings should be debited for A current market value times the number of shares to be issued B par value times the number of shares to be issued C book value times the number of shares to be issued D liquidation value times the number of shares to be issued 5 The issuance of common shares requires a A credit to Common Shares B credit to Retained Earnings C debit to Common Shares D debit to Retained Earnings 6 The number of shares currently in the hands of shareholders is the same as the number of shares A proposed by the board of directors B issued C authorized D outstanding 7 These account balances at December 31 relate to Sportaid nc Accounts Payable $ 51,500 Preferred Shares, $0 10, Accounts Receivable 81,950 85,000 shares issued 850,000 Common Shares 595,000 Retained Earnings 71,000 Bonds Payable 3,300 Notes Receivable 12,600 If the board of directors declare a dividend of $23,000 on December 31, how much of this total would the common shareholders receive No other dividends have been declared during the year 0 A $23,000 0 B $14,500 0 0 $0 0 D $8,500 Simone's Foods has outstanding 500 $10 00 preferred shares and 1,900 common shares Simone's declares dividends of $12,300 The correct entry is O A Dividends Expense 12,300 Cash 12,300 O B Retained Earnings 12,300 Dividends Payable, Preferred 6, 150 Dividends Payable, Common 6, 150 O C Retained Earnings 12,300 Dividends Payable, Preferred 5,000 Dividends Payable, Common 7,300 O D Dividends Payable, Preferred 5,000 Dividends Payable, Common 7,300 Cash 12,300

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1.A corporation has 22,000 $9.00 preferred shares outstanding with a stated value of $2,000,000 . ?Also, there are 22,000 common shares outstanding. If a $350,000

1.A corporation has 22,000 $9.00 preferred shares outstanding with a stated value of $2,000,000. ?Also, there are 22,000 common shares outstanding. If a $350,000 dividend is?paid, how much goes to the preferred?shareholders?

?$0

$198,000

$350,000

$120,000

$320,000

2.The term outstanding shares refers to the maximum number of shares a corporation is allowed to distribute to shareholders.

True

False

A corporation has 15,000 $ 6.00 preferred shares outstanding with a stated value of $3,000,000. ?Also, there are 15,000 common shares outstanding. If a $300,000 dividend is?paid, what is the amount of dividends per share on common?shares?

$ 6.00

$ 14.00

$ 8.00

$ 15.00

None of the above

When accounting for a stock?dividend, Retained Earnings should be debited?for:

current market value times the number of shares to be issued

par value times the number of shares to be issued

book value times the number of shares to be issued

liquidation value times the number of shares to be issued

5.The issuance of common shares requires?a:

credit to Common Shares

credit to Retained Earnings

debit to Common Shares

debit to Retained Earnings

6.The number of shares currently in the hands of shareholders is the same as the number of?shares:

proposed by the board of directors

issued

authorized

D.outstanding

These account balances at December 31 relate to Sportaid |nc.: Accounts Payable .............. $ 51,500 Preferred Shares, $0.10, Accounts Receivable .......... 81,950 85,000 shares issued ........ 850,000 Common Shares ............... 595,000 Retained Earnings ................. 71,000 Bonds Payable .............. 3,300 Notes Receivable ................. 12,600 If the board of directors declare a dividend of $23,000 on December 31, how much of this total would the common shareholders receive? No other dividends have been declared during the year. 0 A. $23,000 0 B. $14,500 0 0. $0 0 D. $8,500 Simone's Foods has outstanding 500 $10.00 preferred shares and 1,900 common shares. Simone's declares dividends of $12,300. The correct entry is: O A. Dividends Expense 12,300 Cash 12,300 O B. Retained Earnings 12,300 Dividends Payable, Preferred 6, 150 Dividends Payable, Common 6, 150 O C. Retained Earnings 12,300 Dividends Payable, Preferred 5,000 Dividends Payable, Common 7,300 O D. Dividends Payable, Preferred 5,000 Dividends Payable, Common 7,300 Cash 12,300