A company has the following paid-in capital: Preferred stock, 6%, $5 par value, 100,000 shares authorized, 20,000 $500,000 shares issued and outstanding Common stock, $9 par value, 300,000 shares authorized, 110,000 shares issued and outstanding 990,000 22) Use the information above to answer the folowing question. If the company pays a 22) $35,000 dividend, and the preferred stock is cumulative and two years' dividends are in arrears, what is the amount the common stockholders will receive? B) S17,000 C) $23,000 D) $35,000 A) $29,000 23) The following information is available from the accounting records of the First $20,000 Treasury Stock Common Stock Additional Paid-In Capital Retained Earnings 70,000 150,000 What is the amount of stockholders' equity for First Corporation? A) $350,000 B) $430,000 C) $520,000 D) $500,000 24) Which of the following statements about Retained Earnings is correct? 24) A) Retained Earnings cannot be restricted by loan covenants. B) Retained Earnings is reduced by the par value of the common stock that is issued C) Retained Earnings generally consists of cumulative net income less any net losses and dividends since inception D) Retained Earnings represents cash available to pay dividends to stockholders. 25) Which of the following accounts is used to record a small stock dividend on common 25) stock but is not used to record a large stock dividend on common stock? A) Common Stock C) Retained Earnings B) Cash D) Additional Paid-In Capital 26) When a stockholder sells its shares to another person for more than its original cost, the 26) corporation: A) records a gain on the sale of stock. C) records a debit to Treasury Stock. B) does not make a journal entry D) records a credit to Common Stock