QUESTION 35 Tom Company (which uses a perpetual inventory system) has the follow

Question

QUESTION 35 Tom Company (which uses a perpetual inventory system) has the following account balances after adjusting entries at December 31, 2012: $ 227,000 100,000 120,000 105,000 350,000 880,000 67,000 120,000 27,000 10,000 47,000 85,000 Merchandise Inventory (12/31/2012) Equipment Accounts Receivable Common Stock ($.50 par) Sales Rent Expense Bonds Payable (due 2040) Accounts Payable Dividends Treasury Stock, Common (19,000 shares) Preferred Stock 6% ($10 par) Land Paid-in Capital in Excess of Par Value, Preferred Cost of Goods Sold Interest Expense 260,000 8,000 720,000 20,000 Click Save and Submit to save and submit. Click Save All Answers to save all answers esc F2 FS 2 4

Explanation / Answer

correct option is"B" -4900

Amount of preferred dividend =par value *rate

               = 85000*.06

                = 5100

Amount of dividend to common stockholders = 10000-5100=4900

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