Items 15 through 21 are based on the following data:

The Board of Directors of Misamis Oriental Ferries, Incorporated at their meeting on May 19, 2006 declared a 10% cash dividend payable on Sept. 17, 2006 to stockholders of record on July 31, 2006. The number of shares issued and outstanding were 5,000 shares with par value of 100 per share.

15.How much amount of dividend should be declared?

a) 40,000 c) 50,000

b) 45,000 d) some other answer

16.What is the entry to record the declaration of cash dividend on May 19?

a) Retained Earnings 45,000

Cash Dividend Payable 45,000

b) Cash Dividend Payable 50,000

Retained Earnings 50,000

c) Retained Earnings 50,000

Cash Dividend Payable 50,000

d) some other answer

17.What should be done on July 31, 2006?

a) prepare a list of stockholders of record.

b) prepare a adjusting entries

c) prepare a balance sheet for the corporation

d) some other answer

18.What is the entry to record payment of cash dividend on Sept. 17?

a. Cash divided payable 45,000

Cash 45,000

b) Income & Expense Summary 50,000

Retained Earnings 50,000

c) Income & Expense Summary 50,000

Retained Earnings 50,000

d) some other answer

19.Assuming that each dividend declared is not yet paid to stockholders as of Balance Sheet date, it is presented in the Balance Sheet as a.

a. current assetc)a stockholders' equity

b. current liabilityd)some other answer

20.How much is the cash dividend per share?

a. 5.00c)15.00

b. 10.00d)some other answer

21.If Cynthia Tac-an owns 1,000 shares, how much cash dividend will she receive?

a. 5,000c)15,000

b. 10,000d)some other answer