SOLVED

 Table 13-1  The following selected list of accounts with their normal balances was taken from the general ledger of Grant Corporation as of December 31, 2010: Cash$173,500 Common shares, 100,000 shares authorized, 50,000 shares issued190,000 Retained earnings131,500 Cash dividends payable25,000 Preferred shares, 200,000 shares authorized 100,000 shares issued500,000 64) Refer to Table 13-1. The average issue price of a common share was: A) $3.80 B) $1.90 C) $5.00 D) $0.95 65) Refer to Table 13-1. The average issue price of a preferred share was: A) $2.50 B) $6.90 C) $5.00 D) $3.80 66) Refer to Table 13-1. Which account should be listed first in the shareholders’ equity section? A) Retained earnings B) Common shares C) Contributed surplus D) Preferred shares 67) Refer to Table 13-1. The total shareholders’ equity as of December 31, 2010 was: A) $190,000 B) $690,000 C) $881,500 D) $821,500 68) Dividends become a liability of the corporation: A) on the payment date B) on the date of record C) on the declaration date D) on the day immediately following the date of declaration 69) The dividends payable liability of the corporation is eliminated: A) on the payment date B) on the date of record C) on the declaration date D) on the day immediately following the date of declaration 70) The entry to record the declaration of a $0.50 per share dividend on 12,500 outstanding common shares requires a: A) credit to cash for $6,250 B) debit to dividends payable for $6,250 C) debit to retained earnings for $6,250 D) credit to retained earnings for $6,250 71) The entry to pay a previously declared dividend of $0.50 per share on 12,500 outstanding common shares requires a: A) debit to cash for $6,250 B) credit to dividends payable for $6,250 C) debit to retained earnings for $6,250 D) debit to dividends payable for $6,250 72) The declaration of a dividend: A) increases total shareholders’ equity B) reduces total assets C) increases total assets D) increases total liabilities 73) The payment of a dividend: A) reduces total shareholders’ equity B) increases total shareholders’ equity C) reduces total liabilities D) has no effect on total assets