Question Details

Preferred stockholders have a priority over common stockholders 



1. When the selling price of treasury stock is greater than its cost, the company credits the
difference to
a. Gain on Sale of Treasury Stock.
b. Paid-in Capital from Treasury Stock.
c. Paid-in Capital in Excess of Par Value.
d. Treasury Stock.
2. Roberson Corporation was organized on January 1, 2008, with authorized capital of
750,000 shares of $10 par value common stock. During 2008, Roberson issued 30,000
shares at $12 per share, purchased 3,000 shares of treasury stock at $13 per share, and
sold 3,000 shares of treasury stock at $14 per share. What is the amount of additional
paid-in capital at December 31, 2008?
a. $0
b. $3,000
c. $60,000
d. $63,000
3. The purchase of treasury stock
a. decreases common stock authorized.
b. decreases common stock issued.
c. decreases common stock outstanding.
d. has no effect on common stock outstanding.
4. Preferred stockholders have a priority over common stockholders as to
a. dividends only.
b. assets in the event of liquidation only.
c. voting rights.
d. both dividends and assets in the event of liquidation.
5. On January 2, 2005, Riley Corporation issued 20,000 shares of 6% cumulative preferred
stock at $100 par value. On December 31, 2008, Riley Corporation declared and paid its
first dividend. What dividends are the preferred stockholders entitled to receive in the
current year before any distribution is made to common stockholders?
a. $0
b. $120,000
c. $360,000
d. $480,000




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