Acct Test 4

The date on which a cash dividend becomes a binding legal obligation is on the

A. declaration date

CAB Inc. has 1,000 shares of 4%, $100 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31, 2012. What is the annual dividend on the preferred stock?

B. $4,00 in total

Logan Corporation issues 50,000 shares of $50 par value preferred stock for cash at $60 per share. The entry to record the transaction will consist of a debit to cash for $3,000,000 and a credit or credits to

B. Preferred Stock for $2,500,000 and Paid in capital in excess of par value-- Preferred Stock for 500,00

The board of directors of Bosco Company declared a cash dividend on November 15, 2012, to be paid on December 15, 2012, to stockholders owning the stock on November 30, 2012. Given these facts, the date of November 30, 2012., is refererred to as the

B. Record date

Dividends in arrears on cumulative preferred stock

B. must be paid before common stockholders can receive a dividend

On the dividend record date

B. no entry is required

Outstanding stock of the Hall Corp included 30,000 shares of $5 par common.

C. $9,000 (15,00*10*.6=9000)

Paid-in Capitol in excess of stated value would appear on a balance sheet under the category

C. Additional paid-capitol

If Norben Company issues 4,000 shares of $5 par value common stock for $140,000, the accoont

C. Paid-in capitol in excess of par value will be credited for $120,000. (40k -20k)

Which of the following is hte appropiate general journal entry to record the declaration of cash divdends?

D. Cash Dividends, Dividends Payable

A corporation records a dividend-related liabilty

D. on the declaration date