Which of the following is the appropriate general journal entry to record the de

Question

Which of the following is the appropriate general journal entry to record the declration of cash dividends ?

A. Cash dividend
Cash
B. Dividends Payable
Cash
C. Paid-in Capital
Dividends Payable
D. Cash Dividends
Dividends Payable


The following information pertains to Benedict Company. Assume that all balance sheet amounts represent average balance figure:

Total Assets $300000
Stockholders’ Equity-Common $150000
Total stockholders’ equity $200000
Sales $100000
Net Income $25000
Number of shares of common stock $6000
Common stock dividends $6000
Preferred stock dividends $4000

What is the payout ratio for Benedicts ?

A.6%
B.40%
C.16%
D.24%


What is the total holders’ equity based on the following account balance?

Common Stock $550000
Paid-In Capital in Excess of Par $50000
Retained Earnings $180000
Treasury Stock $30000

A.$600000
B.$810000
C.$750000
D.$780000

The following data is available for BOX Corporation at Dec 31, 2010:
Common Stock par $10 (authorized 15000 shares) $100000
Treasury Stock (at cost $15 per share) $600
Based on the data, how many shares of common stock are issued?

A. 9960.
B. 15000.
C. 10000.
D. 14960.

Explanation / Answer

1.

C. Paid-in Capital
Dividends Payable
2. D.24%

Payout ratio = Dividend /net income = $6000/$25000 = 24%

3.C.$750000

Common Stock $550000
+Paid-In Capital in Excess of Par $50000
+Retained Earnings $180000
-Treasury Stock $30000= $750,000

4.Issued share 10,000

$100,000/$10 = 10,000 shares

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