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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?
$0
$50,000
$70,000
$20,000
3Multiple Choice Question 201
A net loss
occurs if operating expenses exceed cost of goods sold.
is closed to Retained Earnings even if it would result in a debit
balance.
is closed to the paid-in capital account of the stockholders’ equity
section of the balance sheet.
is not closed to Retained Earnings if it would result in a debit balance.
4-