Question Details

Triad- total stockholders’ equity was 




1. If preferred stock is cumulative, the
a. preferred dividends not declared in a given year are called dividends in arrears.
b. preferred shareholders and the common shareholders receive equal dividends.
c. preferred shareholders and the common shareholders receive the same total dollar
amount of dividends.
d. common shareholders will share in the preferred dividends.
2. The Nice Corporation issues 10,000 shares of $100 par value preferred stock for cash at
$110 per share. The entry to record the transaction will consist of a debit to Cash for
$1,100,000 and a credit or credits to
a. Preferred Stock for $1,100,000.
b. Paid-in Capital from Preferred Stock for $1,100,000.
c. Preferred Stock for $1,000,000 and Retained Earnings for $100,000.
d. Preferred Stock for $1,000,000 and Paid-in Capital in Excess of Par Value—Preferred
Stock for $100,000.
Use the following information for questions 3-5.
Triad Corporation- December 31, 2008 balance sheet showed the following:
8% preferred stock, $20 par value, cumulative, 10,000 shares authorized;
5,000 shares issued $ 100,000
Common stock, $10 par value, 1,000,000 shares authorized; 650,000
shares issued, 640,000 shares outstanding 6,500,000
Paid-in capital in excess of par value—preferred stock 20,000
Paid-in capital in excess of par value—common stock 9,000,000
Retained earnings 2,500,000
Treasury stock (10,000 shares) 210,000
3. Triad declared and paid a $25,000 cash dividend on December 15, 2008. If the company-
dividends in arrears prior to that date were $6,000, Triad- common stockholders received
a. $19,000.
b. $9,000.
c. $11,000.
d. no dividend.
4. Triad- total paid-in capital was
a. $15,620,000.
b. $15,830,000.
c. $15,410,000.
d. $9,020,000.
5. Triad- total stockholders’ equity was 
a. $18,380,000.
b. $15,620,000.
c. $18,170,000.
d. $17,910,000.




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