Q5. The board of directors of Capstone Inc. declared a S0.60 per share cash dividend on its $1 par common stock. On the date of declaration, there were 50,000 shares authorized, 20,000 shares issued, and 5,000 shares held as treasury stock. What is the entry when the dividends are declared? A. Dr. Dividends 9,000 Cr. Dividends Payable 9,000 B. Dr. Dividends 9,000 Cr. Cash 9,000 C. Dr. Dividends 12,000 Cr. Dividends Payable 12,000 D. Dr. Dividends 12,000 Cr. Cash 12,000 Q6. A feature common to both stock splits and stock dividends is That there is no effect on total stockholders' equity A reduction in Retained Earnings An increase in Common Stock. A reduction in the par value of the shares issued. A. B. C. D. Q7. Arrow Printers paid $2,000 interest on short-term notes payable, paid $10,000 interest on long-term bonds, and paid $6,000 in dividends on its common stock. Arrow would report cash outflows from activities, as follows A. Operating, $2,000; Financing S16,000 B. Operating, $0; Financing $18,000 C. Operating, $12,000; Financing $6,000 D. Operating, $18,000; Financing S0