Question Details

Outstanding stock of the Crevusse Corporation 



1.	A stock split
a.	may occur in the absence of retained earnings.
b.	will increase total paid-in capital.
c.	will increase the total par value of the stock.
d.	will have no effect on the par value per share of stock.

	2.	Outstanding stock of the Larson Corporation included 40,000 shares of $5 par common stock and 10,000 shares of 5%, $10 par noncumulative preferred stock. In 2013, Larson declared and paid dividends of $4,000. In 2014, Larson declared and paid dividends of $12,000.  How much of the 2014 dividend was distributed to preferred shareholders?
a.	$6,000
b.	$7,000
c.	$5,000
d.	None of these answer choices are correct 

3.	Outstanding stock of the Crevusse Corporation included 40,000 shares of $5 par common stock and 20,000 shares of 5%, $10 par noncumulative preferred stock. In 2013, Crevusse declared and paid dividends of $8,000. In 2014, Crevusse declared and paid dividends of $24,000. How much of the 2014 dividend was distributed to preferred shareholders?
a.	$14,000
b.	$8,000
c.	$10,000
d.	None of these answer choices are correct 

	4.	On January 1, Ecuyer Corporation had 1,600,000 shares of $10 par value common stock outstanding. On March 31, the company declared a 15% stock dividend. Market value of the stock was $15/share.  As a result of this event,
a.	Ecuyer- Paid-in Capital in Excess of Par account increased $1,200,000.
b.	Ecuyer- total stockholders’ equity was unaffected.
c.	Ecuyer- Stock Dividends account increased $3,600,000.
d.	All of these answer choices are correct.

	5.	On January 1, Key Corporation had 2,000,000 shares of $10 par value common stock outstanding. On March 31, the company declared a 20% stock dividend. Market value of the stock was $15/share.  As a result of this event,
a.	Key- Paid-in Capital in Excess of Par account increased $2,000,000.
b.	Key- total stockholders’ equity was unaffected.
c.	Key- Stock Dividends account increased $6,000,000.
d	All of these answer choices are correct.





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