Kramer Company is authorized by the state to issue 10,000 shares of 8 percent, $100 par value preferred stock. On January 1, Year One, Kramer issues 5,000 shares for $125 per share. On December 13, Year One, Kramer’s board of directors declares the annual dividend to owners on record as of January 3, Year Two. The dividend will be distributed January 18, Year Two. What liability should Kramer Company report on its December 31, Year One, balance sheet as a result of this dividend? Responses $40,000 $80,000 $50,000 $0
Kramer Company is authorized by the state to issue 10,000 shares of 8 percent, $100 par value preferred stock. On January 1, Year One, Kramer issues 5,000 shares for $125 per share. On December 13, Year One, Kramer’s board of directors declares the annual dividend to owners on record as of January 3, Year Two. The dividend will be distributed January 18, Year Two. What liability should Kramer Company report on its December 31, Year One, balance sheet as a result of this dividend? Responses $40,000 $80,000 $50,000 $0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Kramer Company is authorized by the state to issue 10,000 shares of 8 percent, $100 par
valuepreferred stock . On January 1, Year One, Kramer issues 5,000 shares for $125 per
share. On December 13, Year One, Kramer’s board of directors declares the annual dividend
to owners on record as of January 3, Year Two. The dividend will be distributed January 18,
Year Two. What liability should Kramer Company report on its December 31, Year One, balance
sheet as a result of this dividend?
value
share. On December 13, Year One, Kramer’s board of directors declares the annual dividend
to owners on record as of January 3, Year Two. The dividend will be distributed January 18,
Year Two. What liability should Kramer Company report on its December 31, Year One, balance
sheet as a result of this dividend?
Responses
-
$40,000
-
$80,000
-
$50,000
-
$0
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