120.
The date the directors vote to declare and pay a dividend is called the:
121.
A liquidating dividend is:
122.
A liability for dividends exists:
123.
A company’s board of directors votes to declare a cash dividend of $.75 per share of
common stock. The company has 15,000 shares authorized, 10,000 issued, and 9,500
shares outstanding. The total amount of the cash dividend is:
124.
A company’s board of directors votes to declare a cash dividend of $1.00 per share on its
12,000 common shares outstanding. The journal entry to record the declaration of the cash
dividend is:
125.
A company’s board of directors votes to declare a cash dividend of $1.00 per share on its
12,000 common shares outstanding. The journal entry to record the payment of the cash
dividend is:
126.
Hutter Corporation declared a $0.50 per share cash dividend on its common shares. The
company has 20,000 shares authorized, 9,000 shares issued, and 8,000 shares of common
stock outstanding. The journal entry to record the dividend declaration is:
127.
Hutter Corporation declared a $0.50 per share cash dividend on its common shares. The
company has 20,000 shares authorized, 9,000 shares issued, and 8,000 shares of common
stock outstanding. The journal entry to record the dividend payment is:
128.
A corporation’s distribution of additional shares of its own stock to its stockholders
without the receipt of any payment in return is called a:
129.
Which of the following is true of a stock dividend?
130.
On September 1, Ziegler Corporation had 50,000 shares of $5 par value common stock,
and $1,500,000 of retained earnings. On that date, when the market price of the stock is
$15 per share, the corporation issues a 2–for-1 stock split. The general journal entry to
record this transaction is:
131.
All of the following statements regarding stock dividends are true
except
:
132.
A stock dividend is recorded with a transfer from:
133.
A corporation declared and issued a 15% stock dividend on October 1. The following
information was available immediately prior to the dividend:
Retained earnings
$750,000
Shares issued and outstanding
60,000
Market value per share
$15
Par value per share
$5
The amount that contributed capital will increase (decrease) as a result of recording this
stock dividend is:
134.
Global Corporation had 50,000 shares of $20 par value common stock outstanding on July
1. Later that day the board of directors declared a 10% stock dividend when the market
value of each share was $27. The entry to record this dividend is:
135.
Eastline Corporation had 10,000 shares of $10 par value common stock outstanding when
the board of directors declared a stock dividend of 3,000 shares. At the time of the stock
dividend, the market value per share was $12. The entry to record this dividend is:
136.
Preferred stock that confers rights to prior periods’ unpaid dividends even if they were not
declared is called:
137.
Preferred stock that the issuing corporation has the option to retire by paying a specified
amount to the preferred stockholders is called:
138.
Achieving an increased rate of return on common stock by paying dividends on preferred
stock at a rate that is less than the rate of return earned with the assets invested from the
preferred stock issuance is called:
139.
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:
140.
Ultimate Sportswear has $100,000 of 8% noncumulative, nonparticipating, preferred stock
outstanding. Ultimate Sportswear also has $500,000 of common stock outstanding. In the
company’s first year of operation, no dividends were paid. During the second year, the
company paid cash dividends of $30,000. This dividend should be distributed as follows:
141.
Gracey’s Department Stores has $200,000 of 6% noncumulative, nonparticipating,
preferred stock outstanding. Gracey’s also has $600,000 of common stock outstanding.
During its first year, the company paid cash dividends of $30,000. This dividend should be
distributed as follows:
142.
Torino Company has 10,000 shares of $5 par value, 4% cumulative and nonparticipating
preferred stock and 100,000 shares of $10 par value common stock outstanding. The
company paid total cash dividends of $1,000 in its first year of operation. The cash
dividend that must be paid to preferred stockholders in the second year before any
dividend is paid to common stockholders is:
143.
Preferred stock on which the right to receive dividends is forfeited for any year that the
dividends are not declared is referred to as:
144.
A dividend preference for preferred stock means that:
145.
Alto Company issued 7% preferred stock with a $100 par value. This means that:
146.
Stock that was reacquired and is still held by the issuing corporation is called:
147.
Treasury stock is classified as:
148.
The following data were reported by a corporation:
Authorized shares
20,000
Issued shares
15,000
Treasury shares
3,000
The number of outstanding shares is: