A Corporation Had the Following Account Balances on Its December

question 141

Multiple Choice

A corporation had the following account balances on its December 31, year 1, and post-closing trial balance: $$\begin{array} { | l | l | } \hline \text { Common shares } & \$ 1,000 \\\hline \text { Preterred shares } & 760 \\\hline \text { Appropriated for future plant expansion } & 200 \\\hline \text { Unappropriated retained earnings } & 100 \\\hline \text { Bond sinking fund } & 80 \\\hline\end{array}$$ Additional information: During the year a $50 cash dividend on preferred shares and a $50 cash dividend on common shares were declared. At December 31, year 1, total stockholders' equity is:

• A) $2,140
• B) $2,060
• C) $2,040
• D) $1,940

---

Definitions:

Defense Mechanisms

Psychological strategies used by individuals to cope with reality and maintain self-image.

Denial

A psychological defense mechanism where reality or facts are rejected because they are uncomfortable or distressing.

Projection

A defense mechanism in which an individual ascribes their own unacceptable thoughts, feelings, or impulses to others.

Sexual Jokes

Humorous expressions or stories that involve sexual content, often used to break the ice or entertain, but can sometimes be inappropriate or offensive.