Exam 11: Corporations: Organization, Stock Transactions

Marion, Inc. has 5,000 shares of 5%, $100 par value, noncumulative preferred stock and 20,000 shares of $1 par value common stock outstanding at December 31, 2018. There were no dividends declared in 2017. The board of directors declares and pays a $65,000 dividend in 2015. What is the amount of dividends received by the common stockholders in 2015?

An inexperienced accountant for Douglas Corporation made the following entries. Instructions On the basis of the explanation for each entry, prepare the entry that should have been made for the transactions.

Carson Packaging Corporation began business in 2018 by issuing 30,000 shares of $3 par common stock for $8 per share and 12,000 shares of 6%, $10 par preferred stock for par. At year end, the common stock had a market value of $12. On its December 31, 2018 balance sheet, Carson Packaging would report