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Dividends payable is credited for the amount of cash dividends on:
A. Date of Payment
B. Date of Record
C. Last date in the fiscal period
D. Date of Declaration
Burger King has 100,000 authorized shares of $5 par common stock. Burger King issued 40,000 shares at $7. Subsequently, the company declared a 2% stock dividend on a date when the market price was $9 a share. The effect of the declaration and issuance of the stock dividend is to:
A. Retained Earnings: Decrease; Common Stock: Increase; APIC in Excess of Par: Increase
B. Retained Earnings: Increase; Common Stock: Decrease; APIC in Excess of Par: Decrease
C. Retained Earnings: Increase; Common Stock: Decrease; APIC in Excess of Par: Increase
D. Retained Earnings: Decrease; Common Stock: Increase; APIC in Excess of Par: Decrease
What is the total stockholder’s equity balance of McDonald’s based upon the following account balances listed below:
Paid-In Capital Excess of Par
Taco Bell purchases 20,000 shares of its own $20 par common stock for $35 per share. What will be the effect on Taco Bell’s Total Stockholders’ equity?
A. Increase by $400,000
B. Increase by $700,000
C. Decrease by $400,000
D. Decrease by $700,000
Treasury Stock represents stock that is:
A. Authorized but not issued
B. Issued but not outstanding
C. Issued and outstanding
D. Authorized and outstanding
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