5-9 Paid-in capital:

Preferred stock, 8.8%, 90,000 shares at $1 par $ 90,000 Common stock, 364,000 shares at $1 par 364,000

Paid-in capitalexcess of par, preferred 1,437,000

Paid-in capitalexcess of par, common 2,574,000

Retained earnings 9,735,000

Treasury stock, at cost; 4,000 common shares (44,000)

Total shareholders equity $14,156,00

5. Given the information above, on July 5, 2013 a 2% common stock dividend was declared and distributed. The market value of the common stock was $11 per share. Fractional share rights represented 20 equivalent whole shares. Cash was paid in lieu of the fractional share rights. The journal entry to record 2% common stock dividend on July 5. 2013 include:

a. A debit to cash account by $220

b. A credit to Common Stock account by $79,200.

c. A credit to Stock Dividends Payable account by $79,200

d. A credit to Paid-in Capital-Excess of Par account by $71,800.

6. Given the information above, on December 1, 2013 the board of directors declared the 8.8% cash dividend on the 90,000 preferred shares, payable on December 28 to shareholders of record December 20. The journal entry that Consolidated Paper, Inc. should prepare on December 2013 include:

a. A debit to Cash Dividend Payable by $7,920

b. A debit to Retain Earnings account by $7,920

c. A credit to Retain Earnings account by $7,920

d. A debit to cash Par account by $7,920.

7. In keeping with a modernization of corporate statues in its home state, Consolidated Paper, Inc. decided on December 1, 2013 to discontinue accounting for reacquired shares as treasury stock . Shares repurchased will be viewed as having been retired, reassuming the status of unissued . Part of the change, treasury shares held were reclassified as retired stock. The journal entry to reclassification of treasury shares as retired shares includes:

a. A debit to Paid-in Capital-Excess of Par, Common account by $44,000

b. A debit to Paid-in Capital-Excess of Par, Common account by $28,280

c. A debit to Common Stock account by $32,280.

d. A credit to Retain Earnings account by $44,000

8. Given all the information above, the balance of retained earnings at December 31, 2013 income for 2013 is $810,000, is

a. $10,518,160.

b. $10,457,880

c. $10,446,160

d. None of the above answers is correct.

9. Given all the information above, the number of issued common shares December 31, 2013

a. 352,820 shares

b. 367,180 shares

c. 367,200 shares

d. 371,180 shares