Question Details

amounts debited to Stock Dividends




1.	On December 31, 2013, Stock, Inc. has 3,000 shares of 6% $100 par value cumulative preferred stock and 45,000 shares of $10 par value common stock outstanding. On December 31, 2013, the directors declare a $15,000 cash dividend. The entry to record the declaration of the dividend would include:
a.	a credit of $3,000 to Cash Dividends.
b.	a note in the financial statements that dividends of $3 per share are in arrears on preferred stock for 2012.
c.	a debit of $15,000 to Common Stock.
d.	a credit of $15,000 to Dividends Payable.



	2.	Saint, Inc. declares a 10% common stock dividend when it has 30,000 shares of $10 par value common stock outstanding. If the market value of $24 per share is used, the amounts debited to Stock Dividends and credited to Paid-in Capital in Excess of Par are:
	Paid-in Capital in
Stock Dividends	     Excess of Par 
a.	$30,000	$0
b.	$72,000	$42,000
c.	$72,000	$30,000
d.	$30,000	$42,000



	3.	Cloud Manufacturing declared a 10% stock dividend when it had 350,000 shares of $3 par value common stock outstanding. The market price per common share was $12 per share when the dividend was declared. The entry to record this dividend declaration includes a credit to
a.	Stock Dividends for $105,000.
b.	Paid-in Capital in Excess of Par for $315,000.
c.	Common Stock for $105,000.
d.	Common Stock Dividends Distributable for $420,000.


	4.	The following selected amounts are available for Clark Company.
	Retained earnings (beginning)	$800
	Net loss	150
	Cash dividends declared	100
	Stock dividends declared	100
What is its ending retained earnings balance?
a.	$650
b.	$700
c.	$450
d.	$600


5.	Car and Auto Sisters had retained earnings of $15,000 on the balance sheet but disclosed in the footnotes that $3,000 of retained earnings was restricted for plant expansion and $1,000 was restricted for bond repayments.  Cash of $2,000 had been set aside for the plant expansion. How much of retained earnings is available for dividends?
a.	$11,000
b.	$12,000
c.	$15,000
d.	$9,000






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