Sabas Company has 20,000 shares of $100 par, 2% cumulative preferred stock and 100,000 shares of $50 par common stock. The following amounts were distributed dividends: Year 1 Year 2 Year 3 $10,000 45,000 90,000 Determine the dividends per share for preferred and common stock for the first year. a a. $0.50 and $0 b. $0.50 and $0.10 c. $0 and $0.10 d. $2.00 and $0 On January 1, Vermont Corporation had 40,000 shares of $10 par value common stock issued and outstanding. All 40,000 shares had been issued in a prior period at $20 per share. On February 1, Vermont purchased 3,750 shares of treasury stock for $24 per share and later sold the treasury shares for $21 per share on March 1. The journal entry to record the purchase of the treasury shares on February 1 would include a a. debit to a loss account for $112,500 b. credit to Treasury Stock for $90,000 c. debit to Treasury Stock for $90,000 d. credit to a gain account for $112,500 Retained earnings a. is the same as contributed capital b. cannot have a debit balance C. changes are summarized in the retained earnings statement d. is equal to cash on hand Treasury stock shares are a. issued shares that have been reacquired by a corporation b. part of the total outstanding shares but not part of the total issued shares of a corporation C. shares held by the U.S. Treasury Department d. unissued shares that are held by the treasurer of the corporation Earnings per share a. is the net income per common share b. helps compare companies of different sizes C. must be reported by a public company d. All of these choices are correct