Dividends are declared out of Retained Earnings. Paid-in Capital in Excess of Par. Capital Stock. Treasury Stock. Bramble, Inc. has 1120 shares of 6%,$10 par value, cumulative preferred stock and 51200 shares of $1 par value common stock outstanding at December 31,2020. What is the annual dividend on the preferred stock? $6720 in total $672 in total $6 per share $0.06 per share If stock is issued for less than par value, the account Paid-In Capital in Excess of Par is debited if a debit balance exists in the account. Retained Earnings is credited. Paid-In Capital in Excess of Par is credited. Paid-In Capital in Excess of Par is debited if a credit balance exists in the account. If the board of directors authorizes a $1,000,000 restriction of retained earnings for a future plant expansion, the effect of this action is to reduce the amount of retained earnings available for dividend declarations. decrease total assets and total stockholders' equity. increase stockholders' equity and decrease total liabilities. decrease total retained earnings and increase total liabilities. Bramble Co. had retained earnings of $32200 on the balance sheet but disclosed in the footnotes that $3800 of retained earnings was restricted for building expansion and $3000 was restricted for bond repayments. Cash of $4500 had been set aside for the plant expansion. How much of retained earnings is available for dividends? $28400$20900$25400$32200 Which of the following statements about a cash dividend is incorrect? Shareholders usually vote to determine the amount of income to be distributed in the form of a dividend. Dividends are not a liability until declared. The legality of a cash dividend depends on state corporation laws. The legality of a dividend does not indicate a company's ability to pay a dividend