On Oct. 7, Fustos, Inc. purchased 500 shares of its own $10 par value common stock for $13 per share. On Oct.23, 300 of these shares were sold for $15 per share. On Dec. 18, the remaining 200 shares were sold for $9 per share. 11. The entry for the October 7th purchase of the treasury shares is: a. Debit Common Stock $6,500 and Credit Cash $6,5000 b. Debit Common Stock $5,000, Debit Treasury Stock $1,500 and Credit Cash $6,500 c. Debit Treasury Stock $6,500 and Credit Cash $6,500 d. Debit Treasury Stock $5,000, Debit Paid-in-Capital Treasury Stock $1,500 and Credit Cash $6,500 12. The entry for the October 23rd sale of treasury shares is: a. Debit Cash $4,500 and Credit Treasury Stock $4,500 b. Debit Cash $4,500, Credit Common Stock $4,500 c. Debit Cash $4,500, Credit Common Stock $3,000 and Credit Paid-in-Capital Common Stock $1,500 d. Debit Cash $4,500, Credit Treasury Stock $3,900 and Credit Paid-in-Capital Treasury Stock $600 13. The entry for the December 18th sale of treasury shares is: a. Debit Cash $1,800, Debit Loss on Treasury Stock $800 and Credit Treasury Stock $2,600 b. Debit Cash $1,800, Debit Paid-in-Capital Treasury Stock 800 and Credit Treasury Stock $2,600 c. Debit Cash $1,800, Debit Paid-in-Capital Treasury Stock 600, Debit Retained Earnings $200 and Credit Treasury Stock $2,600 d. Debit Cash $1,800, Debit Paid-in-Capital $800 and Credit Common Stock $2,000 Brackman Inc. has $1,000,000 in 6% cumulative Preferred Stock outstanding. It has 15,000 share of common stock outstanding. During its first three years in business, it declared and paid the following total amount of dividends: Year 1-none; Year 2 - $40,000; Year 3. $170,000. Determine whether he following statements are True or False. Use this information for questions 14 - 17. 14. Until the Board of Directors declares a dividend, preferred shareholders, whether cumulative or non-cumulative, aren't entitled to anything. 15. Based on the above information, common shareholders don't received dividends until year 3. 16. The cumulative dividends in arrears at the end of year two is $60,000. 17. If the Preferred Shares were non-cumulative, the common shareholders would have received $110,000 in year 3