97.Conecuh Manufacturing Corporation purchased 8,000 shares of its own previously issued $10 par common stock for $184,000. As a result of this event,
a.Conecuh’s Common Stock account decreased $80,000.
b.Conecuh’s total stockholders’ equity decreased $184,000.
c.Conecuh’s Paid-in Capital in Excess of Par account decreased $104,000.
d.All of these answer choices are correct.
98.A corporation purchases 60,000 shares of its own $30 par common stock for $45 per share, recording it at cost. What will be the effect on total stockholders’ equity?
a.Increase by $2,700,000
b.Decrease by $1,800,000
c.Decrease by $2,700,000
d.Increase by $1,800,000
99.A corporation purchases 40,000 shares of its own $15 par common stock for $30 per share, recording it at cost. What will be the effect on total stockholders’ equity?
a.Increase by $600,000
b.Decrease by $1,200,000
c.Increase by $1,200,000
d.Decrease by $600,000
100.Red October Company has 2,000 shares of 6%, $100 par cumulative preferred stock outstanding at December 31, 2016. No dividends have been paid on this stock for 2016 or 2017. Dividends in arrears at December 31, 2017 total
101.Era Company has 6,000 shares of 5%, $100 par non-cumulative preferred stock outstanding at December 31, 2017. No dividends have been paid on this stock for 2016 or 2017. Dividends in arrears at December 31, 2017 total
102.Katy Hooper Inc. issued 6,000 shares of no-par common stock with a stated value of $5 per share. The market price of the stock on the date of issuance was $14 per share. The entry to record this transaction includes a
a.debit to Cash for $30,000.
b.credit to Common Stock for $84,000.
c.credit to Common Stock for $30,000.
d.debit to Paid-in Capital in Excess of Par for $84,000.
103.Fire Red Company is authorized to issue 20,000 shares of 8%, $100 par value preferred stock and 1,000,000 shares of no-par common stock with a stated value of $1 per share. If Fire Red issues 10,000 shares of preferred stock for land with an asking price of $1,020,000 and a market value of $1,080,000, which of the following would be the journal entry for Fire Red to record?
104.Mountain View, Inc. has 50,000 shares of 8%, $100 par value, noncumulative preferred stock and 100,000 shares of $1 par value common stock outstanding at December 31, 2017. There were no dividends declared in 2016. The board of directors declares and pays a $500,000 dividend in 2017. What is the amount of dividends received by the common stockholders in 2017?
105.When preferred stock is cumulative, preferred dividends not declared in a period are
a.considered a liability.
b.called dividends in arrears.
c.distributions of earnings.
106.Which of the following is not a right or preference associated with preferred stock?
a.The right to vote
b.First claim to dividends
c.Preference to corporate assets in case of liquidation
d.To receive dividends in arrears before common stockholders receive dividends