The charter of a corporation provides for the issuance of 148,000 shares of common stock. Assume that 50,000 shares were originally issued and 5,000 were subsequently reacquired. What is the amount of cash dividends to be paid if a $5 per share dividend is declared?

a.$25,000

b.$225,000

c.$250,000

d.$250,000

A corporation purchases 5,000 shares of its own common stock for $20,000 on February 13. On April 13, half of the treasury stock was sold for $11,000. On April 26, the other half of the treasury stock was sold for $9,400. The entry to journalize the April 26 sale would include a

a.debit to Treasury Stock for $10,000.

b.credit to Paid-In Capital from Sale of Treasury Stock for $1,600.

c.credit to Cash for $9,400.

d.debit to Paid-In Capital from Sale of Treasury Stock for $600.

Wave Corporation began the current year with a retained earnings balance of $20,000. During the year, the company corrected an error made in the prior year, which was a failure to record depreciation expense of $6,000 on equipment. Also, during the current year, the company earned net income of $17,000 and declared cash dividends of $6,000. Compute the year-end retained earnings balance.

a.$31,000

b.$20,000

c.$25,000

d.$37,000

A corporation issues 5,000 shares of common stock for $81,000. The stock has a stated value of $14 per share. The entry to journalize the stock issuance would include a credit to Common Stock for

a.$81,000.

b.$35,000.

c.$70,000.

d.$5,000.

A company with 500,000 authorized shares of $4 par common stock issued 200,000 shares at $8. Subsequently, the company declared a 4% stock dividend on a date when the market price was $15 per share. What is the amount transferred from the retained earnings account to the paid-in capital accounts as a result of the stock dividend?

a.$88,000

b.$32,000

c.$120,000

d.$56,000