Question

Wok N Roll, inc. began on January 1, 2017 by issuing 100,000 shares of $1 par value common stock and 1,000 shares of $100 par value, 5% cumulative preferred stock. No dividends were declared in 2017 or 2018. in 2019, Wok N Roll declared and paid $.50 dividend to its common stockholders. Assuming all shares originally issued are outstanding, the total dividend declared and paid in 2019 equals________

a.$65,000
b.$50,500
c.$50,000
d. $55,000

Answer 1

Wok N Roll, Inc. declared and paid a dividend to its common stockholders in 2019. The total dividend declared and paid in 2019 equals c. $50,000.

Step-by-step explanation:

Wok N Roll, Inc. declared and paid a dividend to its common stockholders in 2019. To calculate the total dividend, we need to know the number of shares of common stock originally issued and the amount of dividend per share. From the given information, we know that Wok N Roll issued 100,000 shares of common stock.

The dividend paid to common stockholders was $0.50 per share. Therefore, the total dividend declared and paid in 2019 would be:

Total dividend = Number of shares x Dividend per share = 100,000 x $0.50 = $50,000

Hence, the correct option is c. $50,000.