1.
2. Oceanview Wholesale Merchandise had 20,000 shares of 6%, $20 par value preferred stock
and 15,000 shares of $25 par value common stock outstanding throughout 2014. Assuming that
total dividends declared in 2014 were $25,000 and that the preferred stock is not cumulative,
common stockholders should receive total 2014 dividends of:
13. Hallery Corporation issued 600 shares of 10% $15 par convertible preferred stock for
$12,000. The entry to record the declaration of the annual cash dividend is:
Question 13 options:
debit Cash Dividends $1,200 and credit Dividends Payable $1,200.
debit Cash Dividends $900 and credit Dividends Payable $900.
debit Cash Dividends $1,200 and credit Cash $1,200.
debit Cash Dividends $900 and credit Cash $900.
15. The resale of treasury stock for an amount greater than its cost:
Question 15 options:
increases net income.
decreases total assets and increases total stockholders' equity.
increases total assets and decreases total stockholders' equity.
increases total assets and increases total stockholders' equity.
Solution
Ans
Sl no Details Amout
Ans 2 1,000.00
Total Dividend Declared 25,000.00

2.
Less Preference Dividend(20000*20*.06) -24,000.00
Dividend to Common stock holders 1,000.00
Ans 13 debit Cash Dividends $900 and credit Dividends Payable $900
Dividend=600*15*10% 900.00
Ans 15 increases total assets and increases total stockholders' equity.