26. An amount of assets defined by state law that stockholders must invest and leave invested in a corporation is called the: A. Par value of preferred B. Minimum legal capital. C. Premium capital. D. Stated value E. Working capital. 27. Owners of preferred stock often do not have: A. Ownership rights to assets of the corporation. B. Voting rights. C. Preference to dividends. D. The right to sell their stock on the open market E. Preference to assets at liquidation. 28, A company issued 7% preferred stock with a $100 par value. This means that: A. Preferred shareholders have a guaranteed dividend. B. The amount of the potential dividend is $7 per year per preferred share C. Preferred shareholders are entitled to 7% of the annual income. D?The market price per share will approximate S 100 per share. E. Only 7% of the total contributed capital can be preferred stock. 29. Assume Garrison Guitar Company declared a S0.28 per share cash dividend and that the company has 25,000 shares authorized, 19,000 shares issued, and 12,000 shares of common stock outstanding. The general journal entry to record the dividend declaration is: Retained Earnings 3,360 Common Dividends Payable Common Dividends Payable A. 5,320 5,320 B. L-Cash Retained Earnings 5,320 Common Dividends Payable C. 3,360 Common Dividends Payable D. Cash 3,360 Retained Earnings E. Common Dividends Payable 7,000 30. A corporation's distribution of additional shares of its own stock to its stockholders without the receipt of any payment in return is called a: A. Stock dividend B. Stock subscription C. Premium on stock D. Discount on stock E. Treasury stock