Reference no: EM132597285

Questions -

Q1) The charter of a corporation provides for the issuance of 100,000 shares of common stock. Assume that 45,000 shares were originally issued and 5,000 were subsequently reacquired. What is the amount of cash dividends to be paid if a $2-per-share dividend is declared?

a. $80,000

b. $10,000

c. $100,00

d. $90,000

Q2) When Wisconsin Corporation was formed on January 1, the corporate charter provided for 83,900 shares of $5 par value common stock. During its first month of operation, the corporation issued 6,060 shares of stock at a price of $25 per share.

The entry to record the above transaction would include a

a. debit to Common Stock for $83,900

b. credit to Common Stock for $151,500

c. debit to Cash for $30,300

d. credit to Paid-In Capital in Excess of Par-Common Stock for $121,200

Q3) The charter of a corporation provides for the issuance of 100,000 shares of common stock. Assume that 37,000 shares were originally issued and 4,800 were subsequently reacquired. What is the amount of cash dividends to be paid if a $4-per-share dividend is declared?

a. $148,000

b. $128,800

c. $400,000

d. $19,200

Q4) A corporation has 50,000 shares of $25 par stock outstanding that has a current market value of $150 per share. If the corporation issues a 5-for-1 stock split, the market value of the stock after the split will be approximately

a. $150

b. $30

c. $5

d. $25