Use the following stockholders' equity section of Marcy Company on December 31, 2004 to answer questions 45 through

50. Treat each question independent of the other questions - so your answer to question 46 should not be influenced by the

answer to question 45, and so on:

Preferred Stock - 6% cumulative, $20 par value, 10,000 shares authorized, 5,000 shares issued and outstanding . .$100,000

Contributed Capital in excess of par value, Preferred Stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . .250,000

Common Stock, $5 par value, 20,000 shares authorized, 10,000 shares issued and outstanding. . .. . . . . . . . . . . . . .50,000

Contributed Capital in excess of par value, Common Stock . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . 450,000

Total Contributed Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 850,000

Retained Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .150,000

Total Stockholders' Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,000,000

45. The average issue price per share of preferred stock must have been:

A)

$20.00

B)

$50.00

C)

$70.00

D)

$35.00

E)

$45.00

46. Marcy Company did not pay any dividends in 2004. In 2005, they declared and paid total dividends of $4,000, and in

2006, they declared total dividends of $20,000. How much dividends will be paid to preferred and common stockholders in 2006?

A) Preferred $20,000, Common $0

B)Preferred $8,000, Common $12,000

C)Preferred $18,000, Common $2,000

D) Preferred $14,000, Common $6,000

E)Preferred $12,000, Common $8,000

47. Marcy Company issues 2,000 shares of common stock in exchange for a building, with a market value of $100,000.

The journal entry to record the exchange will cause Total Contributed Capital to: A) increase by $10,000

B)increase by $100,000

C)increase by $90,000

D) increase by $80,000

E)remain unchanged

48. Marcy Company declared and issued a 15% common stock dividend on January 1, 2005, when the market price of their common stock was $12 per share. The journal entry to record the stock dividend will:

A) debit Retained Earnings by $18,000.

B)credit Common Stock Dividend Distributable, $15,000

C)credit Contributed Capital in excess of par, Common Stock, $21,000

D) credit Common Stock Dividend Distributable, $10,500

E)credit Contributed Capital in excess of par, Common Stock, $7,500

49. Marcy Company declared a 100% common stock dividend on January 1, 2005, when the market price of the stock was $7.50. The entry to record this dividend will:

A) debit Retained Earnings,$100,000

B)credit Common Stock Dividend Distributable,$50,000

C)credit Contributed Capital in excess of par, Common Stock, $25,000

D) credit Common Stock Dividend Distributable, $100,000

E)Since this is considered a stock split, no journal entry is made

50. On January 1, 2005, Marcy Company purchased 1,000 shares of its own common stock for $22,000. On February 1,

2005, they sold 600 of these shares for $25 per share, and on March 1, 2005, they sold the remaining 400 shares for

$15 per share. The journal entry required on March 1 will include: A) credit Contributed Capital, Treasury Stock, $1,800

B)debit Retained Earnings for $1,800

C)debit Retained Earnings for $2,800

D) debit Contributed Capital, Treasury Stock, $2,800

E)debit Contributed Capital, Treasury Stock, $1,800

The answers are:

40. E

41. B

42. D

43. D

44. C

45. C

But I don't know how to do them and if you could explain them in detail it would help. Please hurry as I have the final in 30 mins. Thanks