Martin Company has the following capital structure: Common Stock, $2 Par, 200,00

Question

Martin Company has the following capital structure: Common Stock, $2 Par, 200,000 shares outstanding, $420,000; Paid-in Capital In Excess of Par- Common Stock, $1,340,000; Retained Earnings, $237,000. How many shares of common stock are being held in the treasury? 100,000 10,000 200,000 20,000 Branford Company has 8,000 shares of 6%, $50 par, cumulative preferred stock outstanding. If there is one year's dividends in arrears, how much in dividends must be declared in order the common shares to receive any? $24,000 $72,000 $48,000 Can't be computed What happens when a cash dividend is declared and paid? Assets decrease; stockholders equity decreases There is no change in assets or total stockholders equity Assets decrease; paid in capital decreases Assets decrease; there is no other change What is the final effect of a stock dividend once it's been distributed? Assets decrease; total stockholders equity decreases Assets decrease; total stockholders equity increases No change in assets; no change in retained earnings No change in assets; no change in total stockholders equity

Explanation / Answer

Answer:2 b)10000

=420000/2=210000 shares

Treasury stock=210000-200000

=10000

Related Questions

Navigate

• Browse (All)
• Browse M
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.