22. Dividends in arrears on cumulative preferred stock a. never have to be paid, even if dividends are paid to common stockholders. b. must be paid before common stockholders can receive a dividend. C. should be recorded as a current liability until they are paid. d. enable the preferred stockholders to share equally in corporate eamings with the common stockholders. 23. The following selected amounts are available for Thomas Company. Retained earnings (beginning) $3,500 Net loss 200 Cash dividends declared 200 Stock dividends declared 200 What is its ending Retained Earings balance? a. $3,200. b. $3,300. C. $2,900. d. $3,100. 24. On January 1, McCarver Corporation had 800,000 shares of $10 par value common stock outstanding. On March 31 the company declared a 10% stock dividend. Price per share of stock was $15/share. As a result of this event: a. Paid-in Capital in Excess of Par Value account increased $400,000. b. Total stockholders' equity decreased by $1,200,000. C. Retained earnings increased by $1,200,000. d. Paid-in Capital in Excess of Par Value account increased $400,000.. I 25. Stock dividends and stock splits have the following effects on retained earnings: Stock Splits Stock Dividends Increase No change No change Decrease Decrease Decrease d. No change No change 26. Outstanding stock of the Teltronic Corporation included 40,000 shares of $5 par common stock and 20,000 shares of 5%, $10 par cumulative preferred stock. In 2019, Hall declared and paid dividends of $8,000. In 2020, Hall declared and paid dividends of $24,000. How much of the 2020 dividend was distributed to preferred shareholders? a. b. c. a. $10,000 b. $12,000. C. $14,000. d. None of these answer choices are correct