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Use the information below relating to the stockholders' equity of TWOCO at December 31, 2019...

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Accounting

Use the information below relating to the stockholders' equity of TWOCO at December 31, 2019 to answer questions 9-12.

6% cumulative preferred stock, $100 par, 10,000 shares authorized,

6,000 shares issued

$

600,000

Common stock, $3 par, 500,000 shares authorized,

300,000 shares issued and outstanding

$

900,000

Additional paid-in capital: preferred stock

$

60,000

Additional paid-in capital: common stock

$

1,900,000

Retained earnings

$

1,090,000

9. What is the total amount of TWOCO's paid-in capital at December 31, 2019?

a. 1,500,000

b. 4,550,000

c. 3,460,000

d. 1,960,000

10. The balance in Retained Earnings at the beginning of the year was $950,000, and there were no dividends in arrears. Net income for 2019 was $980,000. What was the amount of total dividends declared?

a. Impossible to determine from the information given.

b. 1,090,000

c. 840,000

d. 1,930,000

11. How much of the total dividend was paid to preferred stockholders?

a. 360,000

b. 600,000

c. 36,000

d. 60,000

12. What was the amount dividend declared on each share of common stock during 2019?

a. 6.00

b. 2.68

c. 3.00

d. Impossible to determine from the information given.

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