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please solve these questions with full explanations. thank you! Use the following stockholders' equity section of Marcy Company on December 31, 2004 to answer questions
please solve these questions with full explanations. thank you!
Use the following stockholders' equity section of Marcy Company on December 31, 2004 to answer questions 45 through 50. Treat each question independent of the other questions - so your answer to question 46 should not be influenced by the answer to question 45, and so on: Preferred Stock - 6% cumulative, $20 par value, 10,000 shares authorized, 5,000 shares issued and outstanding ..$100,000 Contributed Capital in excess of par value, Preferred Stock ... 250,000 Common Stock, $5 par value, 20,000 shares authorized, 10,000 shares issued and outstanding. 50,000 Contributed Capital in excess of par value, Common Stock . 450,000 Total Contributed Capital . .$ 850,000 Retained Earnings ... .150,000 Total Stockholders' Equity $ 1,000,000 46. Marcy Company did not pay any dividends in 2004. In 2005, they declared and paid total dividends of $4,000, and in 2006, they declared total dividends of $20,000. How much dividends will be paid to preferred and common stockholders in 2006? A) Preferred $20,000, Common $0 B) Preferred $8,000, Common $12,000 C) Preferred $18,000, Common $2,000 D) Preferred $14,000, Common $6,000 E) Preferred $12,000, Common $8,000 47. Marcy Company issues 2,000 shares of common stock in exchange for a building, with a market value of $100,000. The journal entry to record the exchange will cause Total Contributed Capital to: A) increase by $10,000 B) increase by $100,000 C) increase by $90,000 D) increase by $80,000 E) remain unchanged 49. Marcy Company declared a 100% common stock dividend on January 1, 2005, when the market price of the stock was $7.50. The entry to record this dividend will: A) debit Retained Earnings $100,000 B) credit Common Stock Dividend Distributable,$50,000 C) credit Contributed Capital in excess of par, Common Stock, $25,000 D) credit Common Stock Dividend Distributable, $100,000 E) Since this is considered a stock split, no journal entry is made 50. On January 1, 2005, Marcy Company purchased 1,000 shares of its own common stock for $22,000. On February 1, 2005, they sold 600 of these shares for $25 per share, and on March 1, 2005, they sold the remaining 400 shares for $15 per share. The journal entry required on March 1 will include: A) credit Contributed Capital, Treasury Stock, $1,800 B) debit Retained Earnings for $1,800 C) debit Retained Earnings for $2,800 D) debit Contributed Capital, Treasury Stock, $2,800 E) debit Contributed Capital, Treasury Stock, $1,800Step by Step Solution
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