Question Details

total stockholders' equity




1.	If preferred stock is cumulative, the
a.	preferred dividends not declared in a given year are called dividends in arrears.
b.	preferred stockholders and the common stockholders receive equal dividends.
c.	preferred stockholders and the common stockholders receive the same total dollar amount of dividends.
d.	common stockholders will share in the preferred dividends.



2.	The Northern Corporation issues 8,000 shares of $100 par value preferred stock for cash at $120 per share. The entry to record the transaction will consist of a debit to Cash for $960,000 and a credit or credits to
a.	Preferred Stock for $960,000.
b.	Paid-in Capital from Preferred Stock for $960,000.
c.	Preferred Stock for $800,000 and Retained Earnings for $160,000.
d.	Preferred Stock for $800,000 and Paid-in Capital in Excess of Par—Preferred Stock for $160,000.



3.	Vega Corporation- December 31, 2013 balance sheet showed the following:
8% preferred stock, $20 par value, cumulative, 10,000 shares
	authorized; 7,500 shares issued	$   150,000
Common stock, $10 par value, 1,000,000 shares authorized;
	975,000 shares issued, 960,000 shares outstanding	9,750,000
Paid-in capital in excess of par—preferred stock	30,000
Paid-in capital in excess of par—common stock	13,500,000
Retained earnings	3,750,000
Treasury stock (15,000 shares)	315,000
Vega declared and paid a $48,000 cash dividend on December 15, 2013. If the company- dividends in arrears prior to that date were $10,000, Vega- common stockholders received
a.	$38,000.
b.	$22,000.
c.	$26,000.
d.	no dividend.



4.	Each of the following decreases retained earnings except a
a.	cash dividend.
b.	liquidating dividend.
c.	stock dividend.
d.	All of these decrease retained earnings.



	5.	Each of the following decreases total stockholders' equity except a
a.	cash dividend.
b.	liquidating dividend.
c.	stock dividend.
d.	All of these decrease total stockholders' equity.





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