The charter of a corporation provides for the issuance of 100,000 shares of common stock. Assume that 45,000 shares were originally issued and 5,000 were subsequently reacquired. What is the amount of cash dividends to be paid if a s2 per share dividend is declared? $100,00 $10,000 $90,000 $80,000 Treasury stock that was purchased for $3,000 is sold for $3,500. As a result of these two transactions combined a. stockholders' equity will not change. O b. income will be increased by $500. c. stockholders' equity will be increased by $3,500. d. stockholders' equity will be increased by $500. Sabas Company has 20,000 shares of 100 par, 2% cumulative preferred stock and 100,000 shares of s50 par common stock. The following amounts were distributed as dividends $10,000 Year 1: Year 2: Year 3: 45,000 90,000 Determine the dividends per share for preferred and common stock for the third year. $3.25 and $0.25 $4.50 and $0.25 $2.00 and $0.25 $4.50 and $0.90 The charter of a corporation provides for the issuance of 100,000 shares of common stock. Assume that 30,000 shares were originally issued and 5,000 were subsequently reacquired. What is the number of shares outstanding? 25,000 70,000 30,000 35,000 The primary purpose of a stock split is to a. reduce the market price of the stock per share. b. increase the market price of the stock per share. c. increase retained earnings. d. increase paid-in capital. The Dayton Corporation began the current year with a retained earnings balance of $32,000. During the year, the company corrected an error made in the prior year, which was a failure to record a depreciation expense of $3,000 on equipment. Also, during the current year, the company earned net income of $12,000 and declared cash dividends of $7,000. Compute the year-end retained earnings balance. $41,000 $34,000 $44,000 $37,000 The entry to record the issuance of 150 shares of $5 par common stock at par to an attorney in payment of legal fees for organizing the corporation includes a credit to a. Goodwill. b. Organizational Expenses. c. Common Stock. d. Cash 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 as dividends: $10,000 Year 1: Year 2: 45,000 Year 3: 90,000 Determine the dividends in arrears for preferred stock for the second year. so $10,000 $25,000 $30,000 Treasury stock that had been purchased for $5,600 last month was reissued this month for $8,500. The journal entry to record the reissuance would include a credit to Treasury Stock for $8,500 Paid-In Capital in Excess of Par-Common Stock for $2,900 Paid-In Capital from Sale of Treasury Stock for $8,500 Paid-In Capital from Sale of Treasury Stock for $2,900