A2 Chapter 11: Corporate Dividends and Treasury Stock

On November 7, Blue Duck Corporation bought back 700 shares of its $11 stated value common stock at $17 per share for a total of $11,900. The correct entry to record this transaction is:

• debit Treasury Stock, $11,900; credit Cash, $11,900.
• debit Cash, $11,900; credit Treasury Stock, $11,900.
• debit Cash, $7,700; credit Treasury Stock, $7,700.
• debit Treasury Stock, $7,700; credit Cash, $7,700.

On October 16, Johnson Corporation received cash from Steven Charles for 300 shares of Treasury Stock at $15 per share for a total of $4,500. Treasury Stock was originally bought by Johnson Corporation on September 10 at $15 per share. The correct entry to record this transaction is:

• debit Cash, $4,500; credit Treasury Stock, $4,500.
• debit Treasury Stock, $4,500; credit Cash, $4,500.
• debit Cash, $4,500; credit Dividends Payable, $4,500.
• debit Dividends-Preferred, $4,500; credit Cash, $4,500.

On October 10, Howard's Corporation bought back 500 shares of its $12 stated value common stock at $15 per share for a total of $7,500. The correct entry to record this transaction is:

• debit Treasury Stock, $6,000; credit Cash, $6,000.
• debit Cash, $6,000; credit Treasury Stock, $6,000.
• debit Cash, $7,500; credit Treasury Stock, $7,500.
• debit Treasury Stock, $7,500; credit Cash, $7,500.

On October 15, Cooper Corporation received cash from Robbie Lefler for 100 shares of Treasury Stock at $13 per share for a total of $1,300. Treasury Stock was originally bought for $18 per share. The correct entry to record this transaction is:

• debit Cash, $1,800; credit Treasury Stock, $1,800.
• debit Treasury Stock, $1,800; credit Cash, $1,800.
• debit Treasury Stock, $1,800; credit Cash, $1,300, Paid-in Capital from Sale of Treasury Stock, $500.
• debit Cash, $1,300, Paid-in Capital from Sale of Treasury Stock, $500; credit Treasury Stock, $1,800.

On June 5, James Corporation received cash from Stephanie Mills for 200 shares of Treasury Stock at $20 per share, $4,000. Treasury Stock was bought on April 17 at $15 per share. The correct entry to record this transaction is:

• debit Cash, $4,000; credit Treasury Stock, $4,000.
• debit Treasury Stock, $4,000; credit Cash $4,000.
• debit Cash, $4,000; credit Treasury Stock, $3,000, Paid-in Capital from Sale of Treasury Stock, $1,000.
• debit Treasury Stock, $3,000, Paid-in Capital from Sale of Treasury Stock, $1,000; credit Cash, $4,000.

On April 17, Jackson Corporation received cash from Charles Preslar for 800 shares of Treasury Stock at $20 per share for a total of $16,000. Treasury Stock was originally bought by Jackson Corporation on March 31 at $20 per share. The correct entry to record this transaction is:

• debit Treasury Stock, $16,000; credit Cash, $16,000.

• debit Cash, $16,000; credit Treasury Stock, $16,000.

• debit Cash, $16,000; credit Dividends Payable, $16,000.

• debit Dividends-Preferred, $16,000; credit Cash, $16,000.

On March 11, Lulu's Corporation declared an annual dividend of $80,000. On the date of record, the corporation had issued 5,000 shares of 7% $80 par value preferred stock and 15,000 shares of $18 stated value common stock. What is the correct journal entry to record the declaration of a dividend on March 11?

• debit Dividends-Common, $52,000, Dividends-Preferred, $28,000; credit Dividends Payable, $80,000

• debit Dividends Payable, $80,000; credit Dividends-Common, $52,000, Dividends-Preferred, $28,000

• debit Cash, $52,000; credit Dividends-Preferred, $52,000

• debit Dividends-Preferred, $52,000; credit Cash, $52,000

On May 31, Bulldog Corporation declared an annual dividend of $40,000. On the date of record, the corporation had issued 3,000 shares of 5% $60 par value preferred stock and 10,000 shares of $13 stated value common stock. What is the correct journal entry to record the payment of the dividend on May 31?

• debit Dividends Payable, $40,000; credit Cash, $40,000

• debit Cash, $40,000; credit Dividends Declared, $40,000

• debit Dividends Payable, $31,000; credit Cash, $31,000

• debit Cash, $31,000; credit Dividends Declared, $31,000

On March 11, Lulu's Corporation declared an annual dividend of $80,000. On the date of record, the corporation had issued 5,000 shares of 7% $80 par value preferred stock and 15,000 shares of $18 stated value common stock. What is the correct journal entry to record the payment of the dividend on March 31?

• debit Cash, $52,000; credit Dividends Payable, $52,000

• debit Dividends Payable, $52,000; credit Cash, $52,000

• debit Dividends Payable, $80,000; credit Cash, $80,000

• debit Cash, $80,000; credit Dividends Payable, $80,000

On May 1, Bulldog Corporation declared an annual dividend of $40,000. On the date of record, the corporation had issued 3,000 shares of 5% $60 par value preferred stock and 10,000 shares of $13 stated value common stock. What is the correct journal entry to record the declaration of a dividend?

• debit Dividends Payable, $40,000; credit Dividends-Common, $31,000, Dividends-Preferred, $9,000

• debit Dividends-Preferred, $31,000; credit Cash, $31,000

• debit Dividends-Common, $31,000, Dividends-Preferred, $9,000; credit Dividends Payable, $40,000

• debit Cash, $31,000; credit Dividends-Preferred, $31,000