Question

1. A company issued 5,000 shares of its $2 par value common stock for $25 per share on 9-1-17. The entry to record this transaction is

a) Debit to ,,,,,,,,,,,,,,,,, for $,,,,,,,,,,,,,,,

b) Credit to ,,,,,,,,,,,,,,,,, for $ ,,,,,,,,,,,,,

c) Credit to ,,,,,,,,,,,,,,,,,, for $,,,,,,,,,

2. A company has total paid in capital from common stock of $1,500,000 and total paid in capital from preferred stock of $350,000. It has retained earnings of $275,000 and there is treasury stock of $80,000. What is the total stockholders' equity in this company?

3. The stock holders' equity in a company was $4,500,000 prior to a 5% stock divident. The retained earnings were $1,805,000 and the paid in capital was $2,695,000. After the stock divident, what would be

a) Retained earnings $ ,,,,,,,,,,,,,, b) paid in capital $,,,,,,,,,,,,,,

4. a) A company has outstanding 4,000 shares of 8% cumulative preferred stock outstanding with a $100 par value. It has paid no dividends in 2010 or 2016. In 2017 the company's board of directors voted to pay dividends to all shareholders based on the company's higher net income. How much of the dividends declared must be paid out to the preferred shareholders? $,,,,,,,,,,

b) How much of the dividends would be paid out to the common stockholders of this company? $,,,,,,,,,,,,,,,,,,

( Total paid out = $100,000)

5. What is the account that is used to balance out a petty cash fund when the pay outs do not balance out to the cash on hand?

Answer 1