Question Details

Ranier Company is authorized




1.	Brown Company has 1,000 shares of 6%, $100 par cumulative preferred stock outstanding at December 31, 2013. No dividends have been paid on this stock for 2012 or 2013. Dividends in arrears at December 31, 2013 total
a.	$0.
b.	$600.
c.	$6,000.
d.	$12,000.



	2.	Era Company has 3,000 shares of 5%, $100 par non-cumulative preferred stock outstanding at December 31, 2013. No dividends have been paid on this stock for 2012 or 2013. Dividends in arrears at December 31, 2013 total
a.	$0.
b.	$1,500.
c.	$15,000.
d.	$30,000.



3.	Ranier Company is authorized to issue 10,000 shares of 8%, $100 par value preferred stock and 500,000 shares of no-par common stock with a stated value of $1 per share. If Ranier issues 5,000 shares of preferred stock for land with an asking price of $600,000 and a market value of $540,000, which of the following would be the journal entry for Ranier to record?
a.	Land		500,000
		Preferred Stock		500,000
b.	Land		540,000
		Preferred Stock		540,000
c. 	Land		600,000
		Preferred Stock		500,000
		Paid-in Capital in Excess of Par-Preferred		100,000
d. 	Land		540,000
		Preferred Stock		500,000
		Paid-in Capital Excess of Par-Preferred		40,000



4.	Lakeland, Inc. has 25,000 shares of 8%, $100 par value, noncumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31, 2012. There were no dividends declared in 2011. The board of directors declares and pays a $250,000 dividend in 2012. What is the amount of dividends received by the common stockholders in 2012?
a.	$0
b.	$200,000
c.	$250,000
d.	$50,000


5.	When preferred stock is cumulative, preferred dividends not declared in a period are
a.	considered a liability.
b.	called dividends in arrears.
c.	distributions of earnings.
d.	never paid.





Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Management Course Help