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A corporation has 5,000 shares of 8 percent noncumulative preferred stock and 10,000 share

A corporation has 5,000 shares of 8 percent noncumulative preferred stock and 10,000 shares of common stock outstanding. Par value for each is $100. No dividends were paid last year, but this year a(n) $73,000 dividend is paid. How much of this $73,000 goes to the holders of common stock?

 

a.

$33,000

b.

$43,000

c.

$53,000

d.

$63,000

 

 

 

134.Dividends in arrears cannot exist in conjunction with

 

a.

cumulative preferred stock.

b.

noncumulative preferred stock.

c.

callable preferred stock.

d.

convertible preferred stock.

 

 

 

135.Which of the following would not be an account in the general ledger of a corporation?

 

a.

Dividends in Arrears

b.

Retained Earnings

c.

Dividends Payable

d.

Additional Paid-in Capital

 

 

 

136.When callable preferred stock is called and surrendered, the shareholder is entitled to all of the following except

 

a.

dividends in arrears.

b.

a call premium.

c.

a prorated portion of the current period's dividend.

d.

the market value of the stock.

 

 

 

137.Preferred stock is least likely to have which of the following characteristics?

 

a.

Preference as to dividends

b.

Preference as to assets upon liquidation of the corporation

c.

The right of the holder to convert to common stock

d.

The right of the holder to vote at stockholders' meetings

 

 

 

138.Which of the following stock terms is least like the others?

 

a.

Legal capital

b.

Stated value

c.

Market value

d.

Par value

 

 

 

139.Par value is the minimum cushion of capital established for the protection of

 

a.

creditors.

b.

all of these.

c.

investors (stockholders).

d.

management.

 

 

 

140.If a corporation has issued common stock at various prices that exceed par value, legal capital will be made up of the

 

a.

total amount of contributed capital plus retained earnings.

b.

par value of the shares issued.

c.

total stockholders' equity plus total liabilities.

d.

total amount of contributed capital.

 

 

 

141.The excess of the issuance price over the stated value of a no-par common stock should be credited to the

 

a.

Treasury Stock account.

b.

Additional Paid-in Capital account.

c.

Retained Earnings account.

d.

Common Stock account.

 

 

 

142.The par value of the common stock represents the

 

a.

amount the corporation received when the stock was issued.

b.

amount entered into the corporation's Common Stock account when a share is issued.

c.

liquidation value of the stock.

d.

market value of a share of stock.

Dec 10 2019 View more View Less

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