Question 48 (4 points) On January 1st, the Petty Co. was authorized to issue 20,000 shares of $6 par value common stock and 5,000 shares of $100 par value, 6% cumulative preferred stock. The following transactions occurred during the year: April 1st The company issued 6,000 shares of common stock for $10 per share. The company issued 3,000 shares of preferred stock for $138 per July 10th share. Dec. 12th The company declared dividends of $48.000 Dec. 22nd The company distributed the dividends to shareholders. Question: The journal entry on December 22nd would include a: Credit to Dividend Payable in tend Credit to Retained Earnings. Debit to Cash Debit to Stockholders Equity None of the above. 36 39 Question 49 (4 points) On January 1st, the Petty Co. was authorized to issue 20,000 shares of $6 par value common stock and 5,000 shares of $100 par value, 6% cumulative preferred stock. The following transactions occurred during the year: April 1st The company issued 6,000 shares of common stock for $10 per share. July 10th The company issued 3,000 shares of preferred stock for $138 per share. Dec. 12th The company declared dividends of $48.000. Dec. 22nd The company distributed the dividends to shareholders. Question: The journal entry on July 10th would include a: 45 18 Debit to PIC-Excess Preferred Stock of $24,000. Debit to Preferred Stock of $60,000 51 Credit to Cash of $60,000. Credit to Retained Earnings of $24,000. None of the above. 5 36 1 8 39 Question 50 (4 points) On January 1st, the Petty Co. was authorized to issue 20,000 shares of $6 par value common stock and 5,000 shares of $100 par value, 6% cumulative preferred stock. The following transactions occurred during the year: April 1st The company issued 6,000 shares of common stock for $10 per share. July 10th The company issued 3,000 shares of preferred stock for $138 per share Dec. 12th The company declared dividends of $48,000. Dec. 22nd The company distributed the dividends to shareholders. Question: How much of the $48,000 in dividends were allocated to common stock shareholders? 42 45 $48,000 51 $30,000 $18,000 $24,000