The Knight Shoe Company has stockholder's equity as follows: The company is considering issuing a 15% stock dividend. The current market price of the company's stock is $28/ share. If this dividend is declared and issued, which of the following statements is TRUE? Retained Earnings will remain the same. Contributed Capital will increase by $7,500. Additional Paid-In Capital from Stock Dividends will increase by $34,500. Common Stock will increase by $42,000. NONE of the other answers are correct On January 1, 2020, Cortez Inc. declares a property dividend that will distribute equipment to it shareholders. The equipment is recorded in the books at $150,000 and accumulated depreciation for the equipment is $105,000. The equipment is determined to have a fair value of $60,000. Which of the following will NOT be included in the journal entries on the date of declaration of the property dividend? DRAsset $15,000 DR Retained Earnings $60,000 CR Gain on Disposal \$15,000 CR Property Dividends Payable $60,000 ALL of the other answers are included in the journal entries. Jackson Paperclip Company has 4,000 shares of 6%,$100 par cumulative, non-participating preferred stock and 55,000 shares of $1 par common stock outstanding. The company did not pay a dividend the previous two years but declares and pays a cash dividend of $100,000 in the current Jear. How much cash will the common shareholders receive from the dividend? $12,088 $28,000 $52,000 $72,000 NONE of the other answers are correct. At the beginning of the year. Thermos Water Bottle Company had 50,000 shares of $100 par value common stock outstanding. During the year, it engaged in the following transactions related to its common stock: February 28 - Declared and issued a 25\% stock dividend April 30 - Repurchased 7,500 shares of common stock August 1 - Issued a 2 for 1 stock split, reducing the par value to $50/ share October 1 - Issued 10,000 shares of common stock Compute Thermos's weighted average common shares outstanding (round to the nearest whole number). 47,50060,00092,500117,500 NONE of the other answers are correct On March 31. 2020, Walt RV Company entered into a subscription contract to sell 10,000 shares of $5 par common stock for $8 a share. The contract requires a down payment of 20% with the remaining amount due on September 30, 2020. Which of the following will NOT be included in the journal entry to record the stock subscriptions on March 31? DR Cash $16,000 DR Common Stock - Subscribed $80,000 DR Subscriptions Receivable $64,000 CR Additional Paid-In Capital - Common $30,000 ALL of the other answers will be included in the journal entry. On January 1, 2016. Tiger Corp. grants 20 of its employees compensatory stock options. These options allow the employees the right to purchase 100 shares of its $1 par value common stock for $15 a share after a 4-year service period. On the grant date, the options have a fair value of $7.60 per option. Based on the historical turnover rate, Tiger expects 5 employees will not vest in the plan. On January 1, 2020, 4 employees decide to redeem their options. Which of the following is included in the journal entry to record the redemption of options on January 1, 2020? DR Paid-In Capital from Share Options $3,040 DR Compensation Expense $6,000 DR Cash $9,040 CR Common Stock $9,040 NONE of the other answers are correct