8-9. A corporation's outstanding stock is composed of 20,000 shares of $10
preferred, $100 par, and 100,000 shares of common, $50 par. Preferred
dividends were passed in the prior year and no dividends have been paid
thus far in the current year. A total of $200,000 in dividends is to be
distributed. Determine the total amount of the dividends to be paid on the
preferred stock under each of the following assumptions:
8. Preferred is noncumulative and nonparticipating						$
9. Preferred is cumulative and nonparticipating						$
10. The excess of issue price over par of common stock is termed a
11. The term applied to a debit balance in Retained Earnings is
12. The effect on total stockholders' equity of the declaration of a cash
dividend is (increase, decrease, or no effect)
13. Three different dates related to a cash dividend declaration are (1)
date of declaration, (2) date of record, and (3) date of payment. The date
for recording the liability is the date of
14. A corporation with 40,000 shares of common stock issued, of which
4,000 shares are held as treasury stock, declares a cash dividend of $4
a share. The total amount of the dividend is						$
15-17. State the net effect (increase, decrease, no effect) of the
authorization and issuance of stock certificates in a stock split on each
of the following:
15. Paid-in capital
16. Retained earnings
17. Number of shares outstanding
18. Are dividends in arrears on preferred stock a liability of the corporation?
(Answer "yes" or "no"
19-22. State the net effect (increase, decrease, no effect) of the declaration
and payment of a cash dividend on the following:
19. Paid-in capital
20. Retained earnings
21. Total stockholders' equity
22. Cash
23. The liability of the stockholders of a corporation is usually (limited,
unlimited) with respect to debts owed by the corporation