Chapter 13 11. Which of the following is NOT a reason for which a company may purchase treasury stock? A) to avoid a takeover by an outside party by increasing the number of outstanding shares that have voting rights B) to increase net assets by buying low and selling high C) to support the company's stock price D) to reward valued employees with stock 12. On March 31, 2018, Water Front, Inc. shows the following data on its balance sheet: Stockholders Equity Common Stock Si Par. 1.180.000 shares authorized P40.000 shares issued 20.000 are outstanding Paid-In Capital in Excess of Par Common Retained Earnings Treasury stock, 15,000 shares at $40 Total Stockholder's Equity 500.000 490,000 600.000 Asume that Water Front sells 1500 shares of treasury stock at $33 per share. What is total stockholders equity after this transaction? A) 36.940,500 B) $7,039,500 C) $6,919,500 D) $7.000,500 13. On the cash dividends become a liability of a corporation A) declaration date B) date of record C) last day of the fiscal year D) payment date 14. The entry to record the payment of a previously declared dividend of 0.25 per share on 15,500 shares of common stock includes a A) debit to Cash Dividends for $4625 B) debit to Cash S4625 C) credit to Cash Dividends for $4625 D) debit to Dividends Payable for $4625 15. Which of the following accurs when a cash dividend is declared? A) liabilities remain unchanged B) stockholdenequity decreases C) liabilities decrease D) assets increase