Krystle corporation Krystle corporation Treasury stock (,o00 shares at cost Tota

Question

Krystle corporation Krystle corporation Treasury stock (,o00 shares at cost Total shareholders' equity 6.000 294,000 What is the average price for which a share of stock was issued A) 56.00 B) s7.3s C) $5.00 D) 51.00 24) Out of Africa, a multi-national corporation had a very successful year. The board of directors declared and paid a cash dividend of $50,000. The prior year, Out of Africa did not pay dividends on its 400 shares of cumulative, 8%, $100 par, preferred stock, How much of the cash dividend was paid to the PREFERRED shareholders? A)$4,000 B) $8,000 C) $6,400 D) $3,200 25) Equitable, Inc issued no new common stock and had 100,000 shares issued and outstanding during 25) The following information is taken from Equitable's accounting records: Net income for the year ended, December 31, 2011 $370,000 eanings, December 31, 2010 Retained earnings, December 31, 2011 otal What was the dividend declared during the year ended December 31, 20117 A) $290,000 B) 5360,000 C) $365,000 D) $725,000 BONUSSHOW ALL YOUR WORK7 points 26) On January 1, 2011, Ajax Corporation signed a $1,000,000, 7%, 10-year mortgage note to buy a new warehouse. The note will be repaid in 10 equal annual installments of $142,378. The first payment was made on December 31, 2011. How much of the second mortgage payment was interest? Round your answer to the nearest dollar.

Explanation / Answer

24) Cash dividend paid to preferred shareholders = 400*100*8%*2 = 6400

so answer is c) $6,400

25) Dividend declared = 280000+370000-360000 = 290000

so answer is a) $290000

26) First installment = 142378

First interest expense = 1000000*7% = 70000

Principal portion in first installment = (142378-70000) = 72378

Second interest expense = (1000000-72378)*7% = 64933.54

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