Question

The Winkel Company had Retained Earnings of $10,000 on 1/1/15.The only paid-in capital account existing was due to Common Stockissued. The company properly recorded these transactions in2015:

1. 10% Stock dividend (Total Market Value of dividend $1,500, ParValue $1,000)
2. Sale of Treasury Stock for $4,000 above Cost
3. Net Income $3,800

Winkel 12/31/15 Retained Earnings is:

Select one:
a. $12,800
b. $12,300
c. $13,800
d . $16,300
e. $9,800

Which accounts are closed at the end of an accountingperiod?

Select one:
a. Both Asset Retirement Obligation and Sales Tax Payable
b. Neither Asset Retirement Obligation nor Sales Tax Payable
c. Asset Retirement Obligation, but not Sales Tax Payable
d. Sales Tax Payable, but not Asset Retirement Obligation

Landon Corporation issued 2,000 shares of $5 par value commonstock and 400 shares of $40 par value preferred stock for a lumpsum of $72,000 cash. What is the credit to Additional Paid- in-Capital-Preferred when the market value of the common shares is $30each and market value of the preferred stock is $50 each? (Round tonearest dollar)

Select one:
a. $20,000
b. $18,000
c. $4,000
d. $2,000
e. $44,000

How does the declaration of a cash dividend that is entirelyliquidating affect Retained Earnings and Current Liabilities,respectively?

Select one:
a. No effect, No effect
b. Increase, Decrease
c. Decrease, Increase
d. Decrease, No effect
e. No effect, Increase