1.state the net effect(increase, decrease , no effect) of the declaration and payment of a cash dividend on the following:

accounts payable

retained earnings

total stockholders' equity

cash

The liability of the stockholders of a corporation is usually (limited, unlimited) with respect to debts owed by the corporation

2. A corporation purchases 120,000 shares of its own $25 par common stock for $1,250,000, recording it at cost. Will the purchase increase, decrease, or have no effect on the following

expense

total assets

3.The stock in Question 2 is resold for $1,500,000. Will the sale increase, decrease, or have no effect on the following?

revenues

total stockholders' equity

total assets

4.If 90,000 shares of common stock are authorized, 75,000 shares are issued, and 5,000 shares are held as treasury stock, how many shares are outstanding?

5.A corporations outstanding stock is composed of 20,000 shares of $5 preferred and 100,000 shares of common, $25 par. At the end of its first year of operations, a total of $200,000 in dividends is to be distributed. Determine the total amount of the dividends to be paid on the preferred stock and common stock.

preferred

common

6.State the net effect (increase, decrease, no effect) of the authorization and issuance of stock certificates in a stock split on each of the following

paid-in capital

retained earnings

number of shares outstanding

market price per share