Chapter 11 Discussion

How many shares of common stock have been issued as of December 31, 2023?

• 400,000

• 31,250

• 500,000

• 8,500,000

What was the average per share price at which the common stock was issued?

• $17

• $16

• $1

• $13

How many shares of common stock are outstanding at December 31, 2023?

• 500,000

• 10,000

• 510,000

• 490,000

Journal Entry for Question 1

• Debit Cash for 535,000

• Credit Preferred Stock for 500,000

• Credit Cash for 500,000

• Credit Paid-in Capital in Excess of Par-Preferred Stock

• Debit Preferred Stock for 500,000

Journal Entry for Question 2

Journal Entry for Question 3

• Debit Cash 12,000; Credit Treasury Stock for 12,000

• Debit Common Stock for 12,000; Credit Cash 12,000

• Debit Cash for 500; Credit Common Stock for 500

• Debit Treasury Stock 12,000; Credit Cash 12,000

Date of Declaration Journal Entry

• Debit Cash Dividends 300,000; Credit Cash 300,000

• Debit Cash Dividends 300,000; Credit Dividends Payable 300,000

• Debit Cash Dividends 500,000; Credit Cash 500,000

• No Journal Entry

Date of Record Journal Entry

• Debit Dividends Payable 300,000; Credit Cash 300,000

• Debit Cash Dividends 500,000; Credit Dividends Payable 500,000

• Debit Dividends Payable 200,000; Credit Cash Dividends 200,000

• No Journal Entry

Date of Payment Journal Entry

• Debit Cash Dividends 300,000; Credit Cash 300,000

• Debit Dividends Payable 300,000; Credit Cash 300,000

• Debit Dividends Payable 300,000; Credit Cash Dividends 300,000

• No Journal Entry

What is the dividend rate on preferred stock?

• 6%

• 4%

• 5%

• 7%