Reference no: EM131774353

Refer to the following list of liability balances at December 31, 2017.

Accounts Payable $22,000
Employee Health Insurance Payable 1,450
Employee Income Tax Payable 400
Estimated Warranty Payable 1,200
Long-Term Notes Payable (Due 2021) 37,000
FICA-OASDI Taxes Payable 1,560
Sales Tax Payable 1,270
Mortgage Payable (Due 2022) 7,000
Bonds Payable (Due 2023) 53,000
Current Portion of Long-Term Notes Payable 7,500

What is the total amount of current liabilities?
A) $35,380
B) $27,880
C) $27,480
D) $26,280

The following information is from the December 31, 2017 balance sheet of Lawson Corporation.

Preferred Stock, $100 par $560,000
Paid-In Capital in Excess of Par-Preferred 43,000
Common Stock, $1 par 190,000
Paid-In Capital in Excess of Par-Common 510,000
Retained Earnings 191,500
Total Stockholders' Equity $1,494,500

What was the average issue price of the common stock shares? (Round your answer to the nearest cent.)
A) $1.88
B) $1.00
C) $2.68
D) $3.68

Assume the following information for Petra Sales, Inc.:

• Common Stock, $1.00 par, 232,000 shares issued, 186,000 shares outstanding
• Paid-In Capital in Excess of Par-Common: $1,770,000
• Retained Earnings: $2,450,000
• Treasury Stock: 26,000 shares purchased at $12 per share

If Petra Sales purchases an additional 13,000 shares of treasury stock at $18 per share, what number of shares will be shown as issued and outstanding?

A) 18 issued; 186,000 outstanding
B) 219,000 issued; 186,000 outstanding
C) 232,000 issued; 173,000 outstanding
D) 232,000 issued; 186,000 outstanding

A corporation has 18,000 shares of 13%, $50 par cumulative preferred stock outstanding and 34,000 shares of no-par common stock outstanding. Dividends of $22,000 are in arrears. At the end of the current year, the corporation declares a dividend of $208,000. What is the dividend per share for preferred stock and for common stock? (Round your answer to the nearest cent.)

A) The dividend per share is $5.00 to preferred stock and $6.65 per share to common stock.
B) The dividend per share is $11.56 to preferred stock and $0 per share to common stock.
C) The dividend per share is $7.72 to preferred stock and $2.03 per share to common stock.
D) The dividend per share is $11.56 to preferred stock and $2.03 per share to common stock.

Which of the following best describes the appropriation of retained earnings?

A) restricting part of retained earnings for expansion or contingencies
B) setting cash aside for expansion
C) designating certain amounts of retained earnings for cash dividends that are required to be paid to shareholders
D) limiting company transactions in order to boost earnings