Question Details

common stock outstanding





1.	Aim, Inc., has 10,000 shares of 5%, $100 par value, noncumulative preferred stock and 40,000 shares of $1 par value common stock outstanding at December 31, 2013. There were no dividends declared in 2012. The board of directors declares and pays a $120,000 dividend in 2013. What is the amount of dividends received by the common stockholders in 2013?
a.	$0
b.	$50,000
c.	$20,000
d.	$70,000


	2.	Last Inc., has 2,000 shares of 6%, $50 par value, cumulative preferred stock and 100,000 shares of $1 par value common stock outstanding at December 31, 2013, and December 31, 2012. The board of directors declared and paid a $5,000 dividend in 2012. In 2013, $24,000 of dividends are declared and paid. What are the dividends received by the preferred stockholders in 2013?
a.	$17,000
b.	$12,000
c.	$7,000
d.	$6,000

 
	3.	Art, Inc., has 5,000 shares of 5%, $100 par value, cumulative preferred stock and 20,000 shares of $1 par value common stock outstanding at December 31, 2013. There were no dividends declared in 2011. The board of directors declares and pays a $45,000 dividend in 2012 and in 2013. What is the amount of dividends received by the common stockholders in 2013?
a.	$15,000
b.	$25,000
c.	$45,000
d.	$0



	4.	Crawl Inc., has 1,000 shares of 6%, $50 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31, 2012, and December 31, 2013. The board of directors declared and paid a $2,000 dividend in 2012. In 2013, $12,000 of dividends are declared and paid. What are the dividends received by the common stockholders in 2013?
a.	$8,000
b.	$6,000
c.	$4,000
d.	$3,000



	5.	On January 1, Sway Corporation had 60,000 shares of $10 par value common stock outstanding.  On March 17, the company declared a 15% stock dividend to stockholders of record on March 20. Market value of the stock was $13 on March 17. The entry to record the transaction of March 17 would include a
a.	credit to Stock Dividends for $27,000.
b.	credit to Cash for $117,000.
c.	credit to Common Stock Dividends Distributable for $90,000.
d.	debit to Common Stock Dividends Distributable for $90,000.





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