Accounting test 2

Madison Co. paid dividend of $6000; $12000; AND $20000 during 2016,2017 and 2018 respectively. The company had 2000 shares of preferred stock outstanding with $5 per share cumulative dividend. The amount of dividends received by the common shareholders during 2018 would be:

$8000 ($5 x 2000 shares=$10000 x 3 years= $30000) ($20000+$12000+$6000= $38000) ($38000-$30000= $8000)

At the end of the accounting period, Saturn Company had a balance of $10000 in its common stock account, additional paid in capital of $10000, retained earnings of $6000 and $2000 of treasury stock. The total amount of stockholders' equity is:

24000

Which answer would represent the financial statement presentation of stockholders' equity after the following transactions? Issued 300 shares of $10 par value common stock for $32 a share. Five hundred shares are authorized. Purchased 25 shares of treasury stock at $30 a share

Common stock, $10 par, 500 shares authorized $3000 Additional paid-in capital $6600 less: treasury stock 25 shares @ $30 per share (750)

A contingent liability is

a potential obligation, the existence or amount of which depends on a future event

Paid in capital

any income that isn't earned from operations

Currents liabilities as of December 31 2017 are the

debts on December 31, 2017 that are expected to be paid using current assets during 2018

The difference between the corporate form of business organization and other forms us most clearly shown in which of the following sections of the financial statements

equity section of the balance sheet

Jupiter Company issued 4000 shares of $5 par value common stock at a market price of $12. As a result of this accounting event, total paid-in capital would

increase by 48000

Venus Company paid to the state of $1900 in sales tax that it had collected from customers. What are the results of this transaction on its financial statements?

liabilities will decrease

Bonds payable are usually classified on the balance sheet as

long-term liabilities

Mars company issued a 25% stock dividend on 30000 outstanding shares of $10 par value common stock. The distribution was made at the time the market value of the stock was $40 a share. How did this transaction affect the company's total stockholders' equity ?

no effect on stockholders equity stock doesn't effect them

Stockholders equity

paid in capital, any type of stock, retained earnings, subtract treasury stock

Which of the following is NOT normally a preference given to the holders of a preferred stock

the right to vote before the common stockholders at the corporations's annual meeting