1.A company had a beginning balance in retained earnings of S65,000.Net profit forthe current year was S122,000.A cash dividends of S8,500 was declared and to be paidout early next year.The ending balance in retained earnings equals:A.Cr.balance S113.500.B.Cr.balance S178.500.C.Dr.balance S 48.500.D.Cr.balance S187,000.2.A company so far has issued 900 shares at S2 par value for S2,000 cash.The totalamount of contributed capital is:A.S900.B.$1,800.C.$200.D.S2,000.3.Treasury share representsA.shares of ownership in the Local Government Treasury DepartmentB.a current assetC.authorized shares that have never been issuedD.previously outstanding shares that have been repurchased by the issuing company4.Skyhigh Co.has 10,000 shares authorized of which 5,000 shares are issued andoutstanding.Mr.Koo bought 1,000 shares of Skyhigh Co.from Mr.Chan at $25,000,this transaction will:A.increase the contributed capital of Skyhigh Co.by S25,000B.increase the issued and outstanding shares of Skyhigh Co.to 6,000C.decrease the issued and outstanding shares of Skyhigh Co.to 4,000D.have no effect on Skyhigh Co5.Tripod Co.has 100,000 authorized,issued and outstanding 6%cumulativepreference shares,at par value $2.It also has 10,000 shares of $1 par value ordinaryshares issued and outstanding.In the Company’s first year of operations,no dividendswere paid.During the second year,Tripod paid cash dividends of $18,000.Thedividend should be distributed as:A.S12,000 preference;S6,000 ordinary.B.S8,000 preference;S10,000 ordinary.C.SO preference;S18,000 ordinary.D.S18,000 preference;SO ordinary.
