Reference no: EM133066605

Questions -

Q1 - Sunland Company has outstanding 83000 shares of 5% preferred stock with a $10 par value and 154000 shares of $3 par value common stock. Dividends have been paid every year except last year and the current year. If the preferred stock is cumulative and nonparticipating and $248500 is distributed, the common stockholders will receive

A. $0.

B. $207000.

C. $248500.

D. $165500.

Q2 - How should a "gain" from the sale of treasury stock be reflected when using the cost method of recording treasury stock transactions?

A. As ordinary earnings shown on the income statement.

B. As paid-in capital from treasury stock transactions.

C. As an other revenue and gain shown on the income statement.

D. As an increase in the amount shown for common stock.

Q3 - At the date of declaration of a small common stock dividend, the entry should not include

A. a credit to Paid-in Capital in Excess of Par.

B. a credit to common stock dividend distributable.

C. a credit to Common Stock.

D. a debit to Retained Earnings.