data are taken from the stockholders' equity section of the balance sheet o The following Issued, 10,000 Shares Outs Additional Paid-in Capital Stock, $10 Par Value, 30,000 Shares Authorized, 12,000 Shares re, 12000 f a $120,000 ngs Treasury Stock, 2,000 Shares 60,000 50,000 26,000 What was the average issue price per share of the common A) $13.00 B) $10.00 C) $15.00 D) $18.00 stock? Answer: 33. What effect does the purchase of treasury stock have on the balance sheet? Total Assets Total Liabilities Stoekholder's Equity A) No effect No effect B) Decrease C) Increase D) Decrease Decrease No effect No effect No effect Increase Increase Answer: 34. Hopkins, Inc. has 1,000 shares of common stock and 1,000 shares of preferred stock outstanding. The preferred stock has a cumulative dividend preference. Both classes of st have a par value of $10. The preferred stock has a dividend rate of 6 percent. Hopkins fa pay a dividend during the prior year. During the current year, the board of directors decl dividends totaling $2,000. Accordingly, the company will distribute dividends in the am A) $2,000 to the preferred shareholders. $1,000 to each class of shareholders. C)$1,200 to the preferred shareholders and $800 to the common shareholders. D) $1,600 to the preferred shareholders and $400 to the common shareholders