Question 24

Which of the following represents the maximum number of shares of stock issuable to the public?

		Authorized shares
		Issued shares
		Outstanding shares
		Treasury shares

7 points

Question 25

Irish Corporation issued (sold) 10,000 shares of its no par common stock for $70 per share. The bylaws established a stated value of $10 per share. The transaction would increase the common stock account on the balance sheet by how much?

		$0
		$600,000
		$100,000
		$700,000

7 points

Question 26

On December 15, 2009, the board of directors of Cross Corporation declared a cash dividend, payable on January 8, 2010 of $.80 per share on the 2,000,000 common shares outstanding. On December 15, 2009, Cross Corporation should

		not prepare a journal entry because the event had no effect on the corporation's financial position until 2010.
		decrease retained earnings $1.6 million and increase expenses $1.6 million.
		decrease retained earnings $1.6 million and increase liabilities by $1.6 million.
		decrease cash $1.6 million and decrease retained earnings $1.6 million.

7 points

Question 27

Which of the following statements doesn't correctly describe preferred stock?

		Preferred shareholders have a preference with respect to dividend payments.
		Preferred shareholders have a preference with respect to assets in the event of liquidation.
		Preferred shareholders have voting rights on a per share basis.
		Preferred stock typically has a fixed dividend rate.

7 points

Question 28

CBA Company reported total stockholders' equity of $85,000 on its balance sheet dated December 31, 2010. During the year ended December 31, 2011, CBA reported net income of $10,000, declared and paid a cash dividend of $2,000, and issued additional common stock for $20,000. What is total stockholders' equity as of December 31, 2011?

		$117,000
		$113,000
		$109,000
		$101,000

7 points

Question 29

A corporation has $80,000 in total assets, $36,000 in total liabilities, and a $12,000 debit balance in retained earnings. What is the balance in the contributed capital account?

		$ 56,000
		$ 44,000
		$ 48,000
		$31,500

7 points

Question 30

The Pioneer Company has provided the following account balances:

Cash $38,000; Short-term investments $4,000; Accounts receivable $6,000; Inventory $48,000; Long-term notes receivable $2,000; Equipment $96,000; Factory Building $180,000; Intangible assets $6,000; Accounts payable $30,000; Accrued liabilities payable $4,000; Short-term notes payable $14,000; Long-term notes payable $92,000; Contributed capital $180,000; Retained earnings $60,000.

What are Pioneer's total current liabilities?

		$44,000
		$34,000
		$48,000
		$140,000