31 soy com corporation has 100 shares of 100 7 cumulative nonparticipating preferred 4303426

31) Soy.com Corporation has 100 shares of $100, 7% cumulative nonparticipating preferred stock and 1,000 shares of $10 par value common stock outstanding. The company paid $4,000 cash dividends including one-year dividends in arrears to preferred stockholders. Preferred stockholders received:

A) $1,200.

B) $2,000.

C) $3,300.

D) $1,400.

32) To calculate dividends on par-value preferred stock:

A) multiply the number of shares issued times rate.

B) multiply rate times par-value per share.

C) multiply number of shares outstanding times rate times par-value.

D) None of these answers is correct.

33) When a company distributes some of their profits to shareholders, it is in the form of:

A) cumulative stock.

B) reduced taxes.

C) dividends.

D) bonds.

34) Common Stock is an asset.

35) The par value of stock represents the market value of the capital of the corporation.

36) A company issues no-par value with no stated value stock. Therefore, the company does not have a minimum legal capital amount.

37) Number of preferred shares times market value per share times dividend rate is the formula used to determine the dividends to be paid.

38) Madison Corporation is authorized to issue 3,000 shares of common stock. Record the journal entry for each of the following independent situations. Assume Madison issues 1,000 shares at $15 on August 31.

a) Common stock has a $10 per share par value.

b) Common stock has no par value and no stated amount.

c) Common stock is no-par stock with a stated value of $8 per share.