Reference no: EM132600308

Question 1: Bramble's Pumping, Inc. has 21100, $6, cumulative preferred shares issued at $150, and 10500 common shares issued at $1, at December 31, 2021. If the board of directors declares a $75000 dividend, the :

A. preferred shareholders will receive 1/10th of what the common shareholders will receive.

B. preferred shareholders will receive the entire $75000.

C. $75000 will be held as restricted retained earnings and paid out at some future date.

D. preferred shareholders will receive $37500 and the common shareholders will receive $37500.

Question 2: Maria and Mary sell 1/4 of their partnership interest to O'Susan receiving $24900 each. At the time of admission, Maria and Mary each had a $44600 capital balance. The admission of O'Susan will cause the net partnership assets to

A. decrease by $49800.

B. increase by $49800.

C. remain at $139000.

D. remain at $89200.

Question 3: At January 1, 2021, Waterway Corporation had the following share capital:

$2 Preferred shares, noncumulative, 500000 shares authorized, 900 shares issued $730000 Common shares, 1,000,000 shares authorized, 11000 shares issued 220000 $950000

On February 16, 2021 the board of directors declared and paid a 8% common stock dividend. On July 31, 2021, the board declared a 2-for-1 stock split on the common stock. On its December 31, 2021 financial statements, Waterway Corporation will report how many common shares issued?

A. 23760

B. 22000

C. 11880

D. 11000