No need to do #41 or 42. Thank you!

iple Choice Ipt ea. 26. The following data is available for Blaine Corporation at December 31, 2015 Common stock, par SIO (authorized 30,000 shares) $250,000 Treasury Stock (at cost $15 per share) $ 900 Based on the data, how many shares of common stock have been issued? A) 30,000 B) 25,000 C) 29,940 D) 24,940 27. The date a cash dividend becomes a binding legal obligation to a corporation is the A) declaration date. B) carnings date. C) payment date. D) record date. __ 28. Each of the following is reported for common stock except the A) par value. B) shares issued. C) shares outstanding. D) liquidation value. 29. Preferred stockholders have a priority over common stockholders as to A) dividends only. B) assets in the event of liquidation only. C) voting rights D) both dividends and assets in the event of liquidation 30. A stockholders' equity statement shows A) the names of each stockholder B) how profits are distributed to the various classes of stockholders C) the number of shares owned by cach of the stockholders D) the changes in cach stockholders' equity account and in total stockholders' equity during the period. 31. What is ordinarily the first step in the formation of a corporation? A) Development of by-laws for the corporation B) Issuance of the corporate charter C) Application for incorporation to the appropriate Secretary of State D) Registration with the SEC 32. Which one of the following is not necessary in order for a corporation to pay a cash dividend? A) Adequate cash B) Approval of stockholders C) Declaration of dividends by the board of directors D) Retained earnings 33. Stockholders of a corporation directly elect A) the president of the corporation C) the treasurer of the corporation. B) the board of directors. D) all of the employees of the corporation 34. Which of the following statements concerning taxation is accurate? A) Partnerships pay state income taxes but not federal income taxes B) Corporations pay federal income taxes but not state income taxes C) Corporations pay federal and state income taxes. D) Only the owners must pay taxes on corporate income Page 2 35. A corporation purchases 30,000 shares of its own $15 par common stock for $30 per share, recording it at cost. What will be the effect on total stockholders' equity? A) Increase by $450,000 C) Increase by $900,000 B) Decrease by $900,000 D) Decrease by $450,000 36. A corporate board of directors does not generally A) select officers. C) declare dividends. B) formulate operating policies. D) execute policy. __37. At December 31, the stockholders' equity of Smith Company was as follow: Common stock, S5 par value: 1,100,000 shares issued and 1,000,000 shares outstanding $5,500,000 Additional paid-in capital 1,400,000 Retained earnings 1,500,000 Treasury stock, (100,000 shares) (700.000) Total stockholders' equity $7.700.000 The book value per share of common stock is A) $7.00 B) $7.20 C) $8.40 D) $7.70 38. A net loss A) occurs if operating expenses exceed cost of goods sold. B) is not closed to Retained Earnings if it would result in a debit balance. C) is closed to Retained Earnings even if it would result in a debit balance. D) is closed to the paid-in capital account of the stockholders' equity section of the balance sheet. 39. The two ways that a corporation can be classified by purpose are A) general and limited. C) state and federal B profit and not-for-profit. D) publicly held and privately held. 40. Of the various dividends types, the two most common types in practice are A) cash and large stock. C) cash and small stock. B) cash and property D) property and small stock. 41. Wise Company had the following transactions. 1. Issued 7,000 shares of common stock with a stated value of $10 for $130,000. 2. Issued 2,000 shares of $100 par preferred stock at $108 for cash. Instructions Prepare the journal entries to record the above stock transactions. 42. Stockton Corporation has 160,000 shares of $5 par value common stock outstanding. It decl 15% stock dividend on June 1 when the market price per share was $13. The shares were iss June 30. Instructions Prenare the necessary entries for the declaration of the divided