25) A corporation declares a dividend of $0.50 per share on 16,000 shares of common stock.Which of the following is included in the entry to record the declaration? A) Cash Dividends isdebited for $8,000. B) Paid-In Capital in Excess of Par-Common is credited for $8,000. C)Cash Dividends is credited for $8,000. D) Dividends Payable-Common is debited for $8,000. E) none of the above

A dividend is a distribution of a portion of a company's earnings to its shareholders, generally in…

Answered: 25) A corporation declares a dividend…

Principles of Accounting Volume 1

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ISBN:9781947172685

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Chapter14: Corporation Accounting

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Problem 8MC: The total amount of cash and other assets received by a corporation from the stockholders in...

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The total amount of cash and other assets received by a corporation from the stockholders in exchange for the shares is ________. A. always equal to par value B. referred to as retained earnings C. always below its stated value D. referred to as paid-in capital
If a corporation declares a 10% stock dividend on its common stock, the account to be debited on the date of declaration is * Common Stock Dividends Distributable. Common Stock. O Paid-in Capital in Excess of Par. O Retained Earnings.
The charter of a corporation provides for the issuance of 120,000 shares of common stock. Assume that 44,000 shares were originally issued and 4,000 were subsequently reacquired. What is the amount of cash dividends to be paid if a $1-per-share dividend is declared? Oa. $120.000 Ob, $40.000 Oc. $44,000 Od. $4.000
All of the following statements pertain to dividends. Which of them is (are) true? a. Shareholders vote each year to declare and set the amount of the dividends to be paid.b. Dividends Payable is a current liability in the statement of financial position of the corporation.c. A 10% dividend on preference share capital means that each shareholder receives a cash dividend equal to 10% of the market value of the stock.d. All of these statements are true.
24. The board of directors of Elston Inc. declared a $0.60 per share cash dividend on its $1 par common stock. On the date of declaration, there were 50,000 shares authorized, 20,000 shares issued, and 5,000 shares held as treasury stock. What is the entry for the dividend declaration? A. Retained earnings Cash dividends payable B. Retained earnings Cash C. Retained earnings Cash dividends payable D. Retained earnings Cash 9,000 9,000 10,000 10,000 9,000 9,000 10,000 10,000
Which of the following occurs when a corporation's board of directors declares a 10% stock dividend? A. Stock Dividends will be debited for the new shares times the current market value of the stock. B. Stock Dividends will be credited for the new shares times the current market value of the stock. C. Stock Dividends will be credited for the new shares times the par value of the stock. D. Stock Dividends will be debited for the new shares times the par value of the stock.
A company declares a 5% stock dividend. The debit to Retained Earnings is anamount equal toa. the market value of the shares to be issued.b. the par value of the shares to be issued.c. the book value of the shares to be issued.d. the excess of the market price over the original issue price of the shares to be issued.
P16-6. Please show all workings clearly.
2a. A corporation sold 11,000 shares of its $10 par value common stock at a cash price of $14 per share. The entry to record this transaction would include: A debit to Cash for $110,000. A debit to Paid-in Capital in Excess of Par Value, Common Stock for $154,000. A credit to Paid-in Capital in Excess of Par Value, Common Stock for $264,000. A credit to Common Stock for $110,000. A credit to Common Stock for $154,000. 2b. A company issued 150 shares of $100 par value common stock for $17,800 cash. The total amount of paid-in capital in excess of par is: $100. $1,500. $2,800. $15,000. $17,800.
Crane Corporation has 70,000 shares of common stock outstanding. It declares a $1 per share cash dividend on November 1 to stockholders of record on December 1. The dividend is paid on December 31.Prepare the entries on the appropriate dates to record the declaration and payment of the cash dividend. What is the date? What are the title and explanations? Is it debit or credit?
Calgate Company had the following shares outstanding and retained earnings at the end of the current year: Preferred shares, 4% (par value $15; outstanding, 10,300 shares) Common shares (outstanding, 33,000 shares) Retained earnings The board of directors is considering the distribution of a cash dividend to both groups of shareholders. No dividends were declared during the previous two years. Three independent cases are assumed: Case A: The preferred shares are non-cumulative; the total amount of dividends is $51,600. Case B: The preferred shares are cumulative; the total amount of dividends is $63,000. Case C: Same as case B, except the amount is $97,500. Required: 1. Compute the amount of dividends, in total and per share, that would be payable to each class of shareholders for each case. (Round "Per share" to 2 decimal places.) Case A: Total Per share Case B: Total Per share $ 154,500 615,000 296,000 Case C: Total Per share Preferred Shares Common Shares
A corporation has the following account balances: Common Stock. $1 par value, $80000; Paid-in Capital in Excess of Par Value, $2710000. Based on this information, the O average price per share issued is $3.49. O number of shares issued is 80000 O number of shares outstanding is 2790000. O legal capital is $2790000.

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