8 DOC INT ACCT QUIZ 1

8 DOC INT ACCT QUIZ 1 - 5. Question: (TCO F) Written, Inc....

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
4. Question: (TCO F) Anders, Inc., has 5,000 shares of 5%, $100 par value, cumulative preferred stock and 20,000 shares of $1 par value common stock outstanding at December 31, 2011. There were no dividends declared in 2009. The board of directors declares and pays a $45,000 dividend in 2010 and in 2011. What is the amount of dividends received by the common stockholders in 2011? Your Answer: $15,000 CORRECT $25,000 $45,000 $0 Instructor Explanation: 5,000 X $100 X .05 = $25,000 ($45,000 X 2) - ($25,000 X 3) = $15,000. Chapter 15. Points Received: 4 of 4 Comments:
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 5. Question: (TCO F) Written, Inc. has outstanding 300,000 shares of $2 par common stock and 60,000 shares of no-par 8% preferred stock with a stated value of $5. The preferred stock is cumulative and nonparticipating. Dividends have been paid in every year except the past two years and the current year. Assuming that $183,000 will be distributed, and the preferred stock is also participating, how much will the common stockholders receive? Your Answer: $111,000. $90,000. CORRECT ANSWER $93,000. $48,000. Instructor Explanation: Chapter 15....
View Full Document

This note was uploaded on 10/14/2010 for the course ACCT 1234 taught by Professor Gor during the Spring '10 term at DeVry Bellevue.

Ask a homework question - tutors are online