Please provide answers.
5. The declaration and payment of cashdividends
a.reduces the amount of resources a company has to invest inproductive assets.
b.sometimes does not reduce a company's cash balance.
c.sometimes does not reduce a company's retained earningsbalance.
d.reduces a company's net income.
6. The declaration of a common cashdividend
a.decreases the number of shares of outstanding stock.
b.decreases a company's retained earnings balance.
c.decreases the amount of cash.
d.decreases the par value of outstanding stock.
7. When do cash dividends becomeliabilities?
a.On the payment date.
b.On the date of record.
c.On the declaration date.
d.Cash dividends are never liabilities because a company is notlegally required to pay cash dividends.
8. Which of the following statements about retainedearnings is true?
a.It is the amount of corporate earnings that have beenreinvested in the business.
b.It is the amount of creditors' claims on assets.
c.It is increased when treasury stock is bought.
d.It is the amount of cash that has been retained from acompany's earnings.
9. Which of the following is NOT an important dateassociated with dividends?
a.Declaration date
b.Dividend payment date
c.Date of record
d.Date of information
10. During the year, Trenton Company purchased 3,000shares of its $10 par common stock at $50 per share and later soldit for $40 per share. How much did total equity change because ofthese treasury stock transactions?
a.$150,000 decrease
b.$120,000 increase
c.$20,000 decrease
d.$30,000 decrease
11. Moony Corporation had 20,000 shares of $4 par-valuecommon stock outstanding on January 1, 2018. On January 10, 2018,the firm purchased 2,000 of its outstanding shares for $18 pershare. On July 22, 2018, it reissued 1,000 shares at $22 per share.Given this information, the entry to record the reissuing of theremaining 1,000 shares on August 17, 2018, at $12 per share wouldprobably include a
a.credit to treasury stock of $4,000.
b.debit to paid-in capital, treasury stock of $6,000.
c.debit to loss on sale of stock of $6,000.
d.debit to retained earnings of $2,000.
12. Moony Corporation had 20,000 shares of $4 par-valuecommon stock outstanding on January 1, 2018. On January 10, 2018,the firm purchased 2,000 of its outstanding shares for $18 pershare. On July 22, 2018, it reissued 1,000 shares at $22 per share.Given this information, the entry to record the reissuance of thestock on July 22 would include a credit to
a.paid-in capital, treasury stock of $4,000.
b.common stock of $4,000.
c.paid-in capital, $18,000.
d.treasury stock of $4,000.
13. Moony Corporation had 20,000 shares of $4 par-valuecommon stock outstanding on January 1, 2018. On January 10, 2018,the firm purchased 2,000 of its outstanding shares for $18 pershare. On July 22, 2018, it reissued 1,000 shares at $22 per share.Given this information, the entry to record the purchase of thisstock on January 10 would include a debit to
a.treasury Stock of $8,000.
b.treasury Stock of $36,000.
c.common Stock of $8,000.
d.common Stock of $36,000.
14. At the beginning of the year, Brandt Company issued5,000 shares of $1 par common stock in exchange for land with abook value of $130,000 and a fair value of $100,000. The marketvalue of the stock at the date of the transaction was $20 pershare. The entry to record this transaction would includea
a.credit to common stock for $100,000.
b.debit to common stock for $5,000.
c.credit to paid-in capital in excess of par, common stock of$95,000.
d.debit to land of $130,000.
15. At the beginning of the year, Salina Company issued10,000 shares of no par common stock for $100 each. The journalentry to record this transaction would include a
a.credit to common stock of $1,000,000.
b.credit to cash of $1,000,000.
c.debit to common stock of $1,000,000.
d.debit to cash of $20,000.
16. On January 1, 2018, Georgi Company was authorized toissue 10,000 shares of $2 par common stock and 5,000 shares of $5par preferred stock. Given this information, if Georgi Companyissued 2,000 shares of preferred stock for $20 per share on January31, 2018, the entry to record the issuance of the stock wouldinclude a
a.credit to preferred stock of $40,000.
b.credit to paid-in capital in excess of par, preferred stock of$10,000.
c.debit to cash of $30,000.
d.debit to cash of $40,000.
