Reference no: EM132953388

Problem 1: Seaside Developments Inc. has $200,000 of no par value 4% cumulative preferred shares, and 12,000 shares of no par value common shares outstanding. In its first three years of operation, the company paid cash dividends as follows: Year 1: $8,000; Year 2: $18,000; and Year 3: $24,000. The amount of dividends received by the common shareholders in year 1 was

A) $4,000.
B) $ 0.
C) $8,000.
D) $12,000.

Problem 2: Which of the following is the first date in the sequence required to pay dividends?

A) payment date
B) announcement date
C) date of record
D) declaration date

Problem 3: The declaration and issuance of a stock dividend

A) increases total shareholders' equity.
B) does not change total shareholders' equity.
C) increases current liabilities.
D) does not change total retained earnings.