Zaina Industries has declared a $40,000 cash dividend to shareholders. The company has 3,500 shares of $19-par, 5% preferred stock and 10,000 shares of $15 - par common stock. The preferred stock is cumulative. How much will be distributed to the preferred and common stockholders on the date of payment if the preferred stock is $10,000 in arrears? O A. $3,325 preferred, $36,675 common O B. $13,325 preferred, $26,675 common OC. $40,000 preferred, 50 common OD. $20,000 preferred, $20,000 common Dragonstone Corp. purchased 600 shares of the company's issued common stock, paying $14 per share. To record the purchase, the journal entry will be: O A. Debit to Treasury Stock $8,400, credit to Cash $8,400 O B. Debit to Common Stock $8,400, credit to Cash $8,400 OC. Debit to Treasury Stock $8,400, credit to Commons OD. No journal entry is needed If Sarina owns 500 shares (5% of a corporation's stock) and the corporation issues 20,000 new shares, how many total shares will she have after exercising her preemptive rights? O A. 1,500 OB. 1,000 OC. 475 ODO
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