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1. Amelia Corporation has the following information in its financial statement:
| | | | |
| Preferred Stock 6%, $100 par, cumulative, 10,000 shares authorized | $ | 540,000 | |
| Common Stock, $2 par, 400,000 shares authorized, 320,000 issued | | 640,000 | |
| Paid-in-Capital Preferred | | 760,000 | |
| Paid-in Capital Common | | 2,560,000 | |
| Retained earnings | | 2,373,400 | |
| |
If Amelia did not pay a dividend for the last two years, but declared a $250,000 dividend this year, how much will the common stockholders receive?
2. Treasury stock:
a.Decreases total stockholders' equity.
b. Increases total stockholders' equity.
c.Is an asset.
d.Does not change total stockholders' equity.
3. The two basic characteristics of estimated liabilities are:
a.Known to exist and amount unable to be determined until a later date.
b.Probable and non-interest bearing.
c.Probable and reasonably estimated.
d.Known to exist and interest bearing.
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