USE THE FOLLOWING INFORMATION FOR THE NEXT (3) QUESTIONS:

 

 

STOCKHOLDER’S EQUITY

January 1, 2015

Preferred Stock (6%, $100 par cumulative, 3,000 shares issued)                   $   _________   

Common Stock ($5 par value, 300,000 shares authorized)                                     1,000,000

Additional Paid in Capital:

      Preferred                                                                                                      15,000

      Common                                                                                                      400,000

Retained Earnings, (January 1)                                                                             488,000

Treasury Stock 5,000 shares                                                                               50,000  

 

 

        During 2015, the only transactions and events pertaining to stockholder’s equity were:

 

 

                April 17          Issued 1,000 shares of Preferred stock for $110 per share for cash.

 

                July 22           Issued 20,000 shares of common stock for a building. On this date the stock was selling for $15 per share. The building was appraised on this date for $290,000.

 

                Oct 14            Sold 2,000 shares from treasury for $17 per share for cash.

 

              Dec. 31          Net income for the year was $215,000. Dividends of $.25 per share for common stockholders were declared by the board on Dec. 29. There are no dividends in arrears.

 

 

 

16. The entry to record the Oct. 14 transaction would include a credit to:

 

A.Cash for $34,000

B.Treasury Stock for $20,000

C.Treasury Stock for $34,000

D.Additional Paid in Capital - Treasury Stock for $34,000

E.Common Stock for $20,000

 

17. What is Total Contributed Capital at December 31, 2015?

A.$2,145,000

B.$2,129,000

C.$2,125,000

D.$2,139,000

E.$2,135,000

 

18. What is the total dollar amount of the dividend declared (for both the Preferred & Common Stockholders)?

A.$79,750

B.$103,250

C.$72,250

D.$79,000

E.$78,250

SuperTutor

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Status NEW Posted 11 Jul 2017 08:07 AM My Price 13.00

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