QUESTION 32

Which of the following occurs when a corporation distributes a stock dividend?

		Total liabilities increase.
		Stockholders' equity increases.
		Total assets decrease.
		Stockholders' equity remains unchanged.

3 points

QUESTION 33

On July 1, 2013, Avery Services issued a long-term note payable for $10,000. It is payable over a 5-year term in $2,000 installments on July 1 of each succeeding year. When the note was issued, the principal amount was recorded in long-term notes payable and a second entry was made to reclassify the current portion. How will this information be shown on the balance sheet dated December 31, 2013?

		$10,000 shown as current liability only
		$2,000 shown as current liability; $10,000 shown as long-term liability
		$2,000 shown as current liability; $8,000 shown as long-term liability
		The entire $10,000 shown as long-term liability

3 points

QUESTION 34

Occidental Produce Company has 40,000 shares of common stock outstanding and 2,000 shares of preferred stock outstanding. The common stock is $0.01 par value; the preferred stock is 4% non-cumulative, with $100 par value. On October 15, 2014, the company declares a total dividend payment of $40,000. How much dividend will be paid to the preferred shareholders?

		$40,000
		$2,000
		$8,000
		$4,500