1.Blue Spruce's Pumping, Inc. has19200, $4, cumulative preferred shares issued at $170, and9100common shares issued at $1, at December 31, 2021. If the board of directors declares a $59000dividend, the

$59000will be held as restricted retained earnings and paid out at some future date.

preferred shareholders will receive 1/10th of what the common shareholders will receive.

preferred shareholders will receive $29500and the common shareholders will receive $29500.

preferred shareholders will receive the entire $59000.

2.What is the closing entry required for cash dividends?

Cash Dividends

Retained Earnings

Retained Earnings

Cash Dividends

Income Summary

Cash Dividends

Cash Dividend

Income Summary

3.SwiftyLimited issued2000common shares in payment of its lawyer's bill of $8900.SwiftyLimited assured the lawyer that the shares would be worth $10900within one year. The bill was for services performed in helping the company incorporate. Southern should record this transaction by debiting:

Common Shares for $8900.

Common Shares for $10900.

Legal Fees Expense for $10900.

Legal Fees Expense for $8900.

4.WildhorseInc. reported sales of $845000, cost of goods sold of $504000, and other expenses totalled $182000. If the company's corporate tax rate is determined to be17%, how much wouldWildhorsereport as income tax expense in the year?

$112710

$57970

$27030

$159000

5.A distribution of a corporation's profit to its shareholders is referred to as

wages and salaries expense.

a dividend.

a share distribution.

a shareholder bonus.