Ranier Company is authorized to issue 10,000 shares of 8%, $100 par
value preferred stock and 500,000 shares of no-par common stock with
a stated value of $1 per share. If Ranier issues 5,000 shares of
preferred stock for land with an asking price of $600,000 and a market
value of $540,000, which of the following would be the journal entry
for Ranier to record?
Land 540,000
Preferred Stock 540,000
Land 540,000
Preferred Stock 500,000
Paid-in Capital Excess of Par-Preferred 40,000
Land 500,000
Preferred Stock 500,000
Land 600,000
Preferred Stock 500,000
Paid-in Capital in Excess of Par-Preferred 100,000
2Multiple Choice Question 181
Aim, Inc., has 10,000 shares of 5%, $100 par value, noncumulative
preferred stock and 40,000 shares of $1 par value common stock
outstanding at December 31, 2013. There were no dividends declared
in 2012. The board of directors declares and pays a $120,000 dividend
in 2013. What is the amount of dividends received by the common
stockholders in 2013?