23. A poration\'s distribution of additional shares of its own stock to its stoc

Question

23. A poration's distribution of additional shares of its own stock to its stockholders without the receipt of any payment in return is called a: A) Stock dividend. B) Stock subscription. C) Premium on stock D) Discount on stock E) Treasury stock. 24. Preferred stock with a feature allowing preferred stockholders to share with common shareholders in any dividends in excess of the percent or dollar amount stated on the preferred stock is called: A) Cumulative preferred stock. B) Callable preferred stock. C) Participating preferred stock. D) Convertible preferred stock. E) Preferential preferred stock 25, A company has 200,000 shares of $1 par value common stock and 20,000 shares of 7% par, cumulative preferred stock outstanding. The balance in Retained Earnings at the beginning of the year was $1,500,000 and one year's dividends were in arrears. Net inc for the current year was $2,000,000. If the company paid a dividend of $3 per share on common stock, what is the balance in Retained Earnings at the end of the year? A) $ 3,500,000 B) S 2,900,000 C) $2,760,000 D) $ 2,620,000 E) $ 620,000

Explanation / Answer

Q-23) ....... Option - A Stock dividend

Q - 24) .......Option - C Participating Preferred stock

Q -25) .......Option - D

1500,000 + 2000,000 = 3500,000 ...............out of this

Preferred dividend = 20000 * 100 * 7% * 2 years = 280,000

Equity dividend = 200,000 * 3 = 600,000

So ending balance = 3500,000 - 280,000 - 600,000 = 2620000

All answers will be 100% correct ............... wish you all the best

Related Questions

Navigate

• Browse (All)
• Browse 2
• Subjects

---

---

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