Dividends declared debit or credit

A company declared a $0.25 per share cash dividend. The company has 160,000 shares authorized, 152,000 shares issued, and 6,400 shares in treasury stock. The journal entry to record the dividend declaration is:

Debit Retained Earnings $38,000; credit Common Dividends Payable $38,000.

Debit Retained Earnings $40,000; credit Common Dividends Payable $40,000.

Debit Common Dividends Payable $38,000; credit Cash $38,000.

Debit Retained Earnings $36,400; credit Common Dividends Payable $36,400.

Debit Common Dividends Payable $36,400; credit Cash $36,400.

A company declared a $0.50 per share cash dividend. The company has 460,000 shares authorized, 437,000 shares issued, and 18,400 shares in treasury stock. The journal entry to record the payment of the dividend declaration is:

Debit Retained Earnings $218,500; credit Common Dividends Payable $218,500.

Debit Common Dividends Payable $209,300; credit Cash $209,300.

Debit Common Dividends Payable $218,500; credit Cash $218,500.

Debit Retained Earnings $209,300; credit Common Dividends Payable $209,300.

Debit Retained Earnings $230,000; credit Common Dividends Payable $230,000.

A company has earnings per share of $8.70. Its dividend per share is $1.50, its market price per share is $100.92, and its book value per share is $77. Its price-earnings ratio equals:

11.60.

7.60.

8.85.

8.70.

5.80.

Xtreme Sports has $300,000 of 8% noncumulative, nonparticipating, preferred stock outstanding. Xtreme Sports also has $700,000 of common stock outstanding. In the company's first year of operation, no dividends were paid. During the second year, Xtreme Sports paid cash dividends of $50,000. This dividend should be distributed as follows:

$27,000 preferred; $23,000 common.

$25,000 preferred; $25,000 common.

$0 preferred; $50,000 common.

$12,500 preferred; $37,500 common.

$24,000 preferred; $26,000 common.

A company has net income of $935,000; its weighted-average common shares outstanding are 187,000. Its dividend per share is $0.80, its market price per share is $95, and its book value per share is $86.50. Its price-earnings ratio equals

17.30.

19.00.

9.30.

8.50.

7.70.

A company issued 260 shares of $100 par value stock for $31,000 cash. The total amount of paid-in capital in excess of par is:

$100.

$2,600.

$5,000.

$26,000.

$31,000.

A company issued 85 shares of $100 par value stock for $9,500 cash. The total amount of paid-in capital is:

$100.

$1,000.

$850.

$8,500.

$9,500.

The following data were reported by a corporation:

Authorized shares33,000

Issued shares28,000

Treasury shares10,000

The number of outstanding shares is:

43,000.

23,000.

28,000.

18,000.

33,000.

A company's board of directors votes to declare a cash dividend of $1.10 per share. The company has 22,000 shares authorized, 17,000 issued, and 16,500 shares outstanding. The total amount of the cash dividend is:

$36,850.

$18,150.

$18,700.

$23,200.

$24,200.

A corporation declared and issued a 10% stock dividend on November 1. The following information was available immediately prior to the dividend:

Retained earnings$780,000

Shares issued and outstanding63,000

Market value per share$18

Par value per share$5

The amount that contributed capital will increase (decrease) as a result of recording this stock dividend is:

$31,500.

$0.

$(31,500).

$(113,400).

$113,400.

A corporation had 49,000 shares of $20 par value common stock outstanding on July 1. Later that day the board of directors declared a 5% stock dividend when the market value of each share was $26. The entry to record this dividend is:

Debit Retained Earnings $63,700; credit Common Stock Dividend Distributable $63,700.

Debit Retained Earnings $63,700; credit Cash $63,700.

Debit Retained Earnings $49,000; credit Common Stock Dividend Distributable $49,000.

No entry is made until the stock is issued.

Debit Retained Earnings $63,700; credit Common Stock Dividend Distributable $49,000; credit Paid-In Capital in Excess of Par Value, Common Stock $14,700.

The following data has been collected about a company's stockholders' equity accounts:

Common stock $10 par value 27,000 shares authorized and 13,500 shares issued, 1,700 shares in treasury$135,000

Paid-in-capital in excess of par value, common stock57,000

Retained earnings32,000

Treasury stock20,740

The treasury shares were all purchased at the same price.

The cost per share of the treasury stock is:

$1.76.

$10.00.

$12.20.

$1.54.

$11.20.

A company has 1,500 shares of $10 par value, 7.0% cumulative and nonparticipating preferred stock and 15,000 shares of $10 par value common stock outstanding. The company paid total cash dividends of $500 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:

$500.

$2,100.

$1,600.

$550.

$1,050.

A corporation was formed on January 1. The corporate charter authorized 100,000 shares of $10 par value common stock. During the first month of operation, the corporation issued 240 shares to its attorneys in payment of a $4,400 charge for drawing up the articles of incorporation. The entry to record this transaction would include:

A debit to Paid-in Capital in Excess of Par Value, Common Stock for $2,000.

A credit to Common Stock for $4,400.

A debit to Organization Expenses for $2,400.

A credit to Paid-in Capital in Excess of Par Value, Common Stock for $4,400.

A debit to Organization Expenses for $4,400.

A company must repay the bank a single payment of $14,000 cash in 3 years for a loan it entered into. The loan is at 9% interest compounded annually. The present value factor for 3 years at 9% is 0.7722. The present value of the loan is:

$17,780.

$12,740.

$10,811.

$14,000.

$10,220.