ACC 206 Week 6 Quiz Chapter 14 -
Multiple Choice Question 75
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,
- Key’s total stockholders’ equity was unaffected.
- Key’s Paid-in Capital in Excess of Par account increased $2,000,000.
- All of these answer choices are correct.
- Key’s Stock Dividends account increased $6,000,000.
Multiple Choice Question 59
Burnell, Inc. has 5,000 shares of 4%, $50 par value, cumulative preferred stock and 100,000shares of $1 par value common stock outstanding at December 31, 2013, and December 31, 2012. The board of directors declared and paid a $8,000 dividend in 2013. In 2014, $30,000 of dividends are declared and paid. What are the dividends received by the preferred and common shareholders in 2014?
- $10,000 $20,000
- $18,000 $12,000
- $15,000 $15,000
Multiple Choice Question 81
CCCR Inc., has 2,000 shares of 6%, $50 par value, cumulative preferred stock and 100,000 shares of $1 par value common stock outstanding at December 31, 2013, and December 31, 2014. The board of directors declared and paid a $4,000 dividend in 2013. In 2014, $24,000 of dividends are declared and paid. What are the dividends received by the common stockholders in 2014?
Multiple Choice Question 92
Kramer Co. had retained earnings of $30,000 on the balance sheet but disclosed in the footnotes that $6,000 of retained earnings was restricted for building expansion and $2,000 was restricted for bond repayments. Cash of $4,000 had been set aside for the plant expansion. How much of retained earnings is available for dividends?
Multiple Choice Question 90
Sebold Manufacturing declared a 10% stock dividend when it had 700,000 shares of $3 par value common stock outstanding. The market price per common share was $12 per share when the dividend was declared. The entry to record this dividend declaration includes a credit to
- Common Stock Dividends Distributable for $840,000.
- Paid-in Capital in Excess of Par for $630,000.
- Common Stock for $210,000.
- Stock Dividends for $210,000.
Multiple Choice Question 62
Corporations generally issue stock dividends in order to
- exceed stockholders' dividend expectations.
- increase the marketability of the stock.
- increase the market price per share.
- decrease the amount of capital in the corporation.
Multiple Choice Question 61
The board of directors must assign a per share value to a stock dividend declared that is
- greater than the par or stated value.
- less than the par or stated value.
- equal to the par or stated value.
- at least equal to the par or stated value.
Multiple Choice Question 46
Regular dividends are declared out of
- Paid-in Capital in Excess of Par.
- Treasury Stock.
- Common Stock.
Multiple Choice Question 64
When stock dividends are distributed,
- No entry is necessary if it is a large stock dividend.
- Common Stock Dividends Distributable is decreased.
- Retained Earnings is decreased.
- Paid-in Capital in Excess of Par is debited if it is a small stock dividend.
Multiple Choice Question 125
The date a cash dividend becomes a binding legal obligation to a corporation is the
- earnings date.
- record date.
- payment date.