Question
On January 1, 2020, Samsung Corporation has 400,000 shares of $3 par value common stock outstanding. On the same date the corporations board of directors
On January 1, 2020, Samsung Corporation has 400,000 shares of $3 par value common stock outstanding. On the same date the corporations board of directors declares a 12% stock dividend to be issue on March 2, 2020. On the declaration date, the corporations common stock fair market value is $4. On declaration date, the corporation will record: *
Debit Stock Dividend $144,000
Debit Stock Dividend $192,000
Credit Stock Dividend $144,000
Credit Stock Dividend $192,000
A Company has 30,000 shares of $1 par common stock issued and outstanding. The company also has 5,000 shares of $100 par 5% cumulative preferred stock outstanding. The company did not pay the preferred dividends in 2017 and 2018. On December 1, 2019, the companys board of directors declared that $200,000 will be paid as dividend on January 17, 2020. What amount of dividends would common stockholders earn? *
$200,000
$150,000
$125,000
$100,000
On November 1, 2019, Lan Inc. announces a 2:1 stock split on its 120,000 shares of $4 par value common stock outstanding. The memo announcing the split will include information about the number of outstanding shares which will be: *
480,000 shares
240,000 shares
120,000 shares
60,000 shares
A small stock dividend is defined as *
less than 30% but greater than 25% of the corporation's issued stock
less than 2025% of the corporation's issued stock
between 50% and 100% of the corporation's issued stock
more than 30% of the corporation's issued stock
The maturity date of a 4-month interest bearing note dated February 1, 2020 is *
April 1, 2020
May 1, 2020
June 1, 2020
July 1, 2020
On the dividend declaration date *
A dividend becomes a current obligation
No entry is required
An entry may be required if it is a stock dividend
Dividends Payable is debited
A Company has 30,000 shares of $1 par common stock issued and outstanding. The company also has 5,000 shares of $100 par 5% cumulative preferred stock outstanding. The company did not pay the preferred dividends in 2017 and 2018. On December 1, 2019, the companys board of directors declared that $200,000 will be paid as dividend on January 17, 2020. What amount of dividends must the company pay the preferred shareholders? *
$100,000
$75,000
$50,000
$25,000
William Company is incorporated on January 1, 2018. During its first year, the corporation issued 20,000 shares of $10 par value preferred stock and 300,000 shares of $1 par value common. At December 31, 2018, the company declared $50,000 cash dividend to be paid on January 13, 2019. The record on payment date will include: *
Debit Cash Dividend
Credit Cash Dividend
Debit Dividend Payable
Credit Dividend Payable
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started