21.The number of shares that a corporations charter allows it to sell is referred to as: Multiple Choice Issued stock. Outstanding stock. Common stock. Preferred stock. Authorized stock

Multiple Choice

Issued stock.

Outstanding stock.

Common stock.

Preferred stock.

Authorized stock.

22. On September 1, Ziegler Corporation had 50,000 shares of $5 par value common stock, and $1,500,000 of retained earnings. On that date, when the market price of the stock is $15 per share, the corporation issues a 2-for-1 stock split. The general journal entry to record this transaction is:

Multiple Choice

Debit Retained Earnings $750,000; credit Common Stock Split Distributable $750,000.

Debit Retained Earnings $750,000; credit Common Stock $750,000.

Debit Retained Earnings $250,000; credit Common Stock $250,000.

Debit Retained Earnings $250,000; credit Stock Split Payable $250,000.

No entry is made for this transaction.

23. West Company declared a $0.50 per share cash dividend. The company has 190,000 shares issued, and 10,000 shares in treasury stock. The journal entry to record the dividend declaration is:

Multiple Choice

Debit Retained Earnings $90,000; credit Common Dividend Payable $90,000.

Debit Common Dividend Payable $95,000; credit Cash $95,000.

Debit Retained Earnings $5,000; credit Common Dividend Payable $5,000.

Debit Common Dividend Payable $90,000; credit Cash $90,000.

Debit Retained Earnings $95,000; credit Common Dividend Payable $95,000.

24. Fargo Company's outstanding stock consists of 750 shares of noncumulative 5% preferred stock with a $10 par value and 4,400 shares of common stock with a $1 par value. During the first three years of operation, the corporation declared and paid the following total cash dividends.

	Dividends Declared & Paid
year 1	$ 31,000
year 2	$ 9,000
year 3	$ 40,000

The amount of dividends paid to preferred and common shareholders in year 1 is:

Multiple Choice

$375 preferred; $30,625 common.

$7,500 preferred; $23,500 common.

$25,750 preferred; $5,250 common.

$15,500 preferred; $15,500 common.

$31,000 preferred; $0 common.