FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 11: Corporations: Organization, stock Transactions, and Dividends

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 21

Multiple Choice

Review LaterAdd Note

Review Later

Alma Corp.issues 1,000 shares of $10 par value common stock at $14 per share. When the transaction is recorded,credits are made to:

A) Common Stock $14,000.
B) Common Stock $10,000 and Paid-in Capital in Excess of Par Value $4,000.
C) Common Stock $4,000 and Paid-in Capital in Excess of Stated Value $10,000.
D) Common Stock $10,000 and Retained Earnings $4,000.

E) B) and C)
F) B) and D)

Correct Answer

verified

Show Answer

Question 22

Essay

Review LaterAdd Note

Review Later

Morocco Inc.reported the following results for the year ending April 30,2014: Prepare a retained earnings statement for the fiscal year ended April 30,2014.

Correct Answer

verified

Show Answer

Question 23

True/False

Review LaterAdd Note

A corporation is a separate entity for accounting purposes but not for legal purposes.

Sabas Company has 20,000 shares of $100 par,2% cumulative preferred stock and 100,000 shares of $50 par common stock.The following amounts were distributed as dividends: Determine the dividends per share for preferred and common stock for each year.

Which of the following amounts should be disclosed in the stockholders' equity section of the balance sheet?

The reduction in the par or stated value of common stock,accompanied by the issuance of a proportionate number of additional shares,is called a stock split.

Cash dividends become a liability to a corporation on the date of record.

The charter of a corporation provides for the issuance of 100,000 shares of common stock.Assume that 30,000 shares were originally issued and 5,000 were subsequently reacquired.What is the number of shares outstanding?

When no-par common stock with a stated value is issued for cash,the common stock account is credited for an amount equal to the cash proceeds.

Par value

The par value of common stock must always be equal to its market value on the date the stock is issued.

A corporation has 60,000 shares of $25 par value stock outstanding that has a current market value of $120.If the corporation issues a 5-for-1 stock split,the number of shares outstanding will be:

On February 1 of the current year,Motor,Inc.issued 700 shares of $2 par common stock to an attorney in return for preparing and filing the Articles of Incorporation.The value of the services is $9,600.Journalize this transaction.

Merritt Company acquired a building valued at $210,000 for property tax purposes in exchange for 12,000 shares of its $5 par common stock.The stock is widely traded and selling for $18 per share.At what amount should the building be recorded by Merritt Company?

The authorized stock of a corporation

On May 10,a company issued for cash 1,500 shares of no-par common stock (with a stated value of $2)at $14,and on May 15,it issued for cash 2,000 shares of $15 par preferred stock at $58. Journalize the entries for May 10 and 15,assuming that the common stock is to be credited with the stated value.

The cumulative effect of the declaration and payment of a cash dividend on a company's financial statements is to

If Everly Company issues 1,000 shares of $5 par value common stock for $75,000,the account

If paid-in-capital in excess of par/preferred stock is $30,000,preferred stock is $200,000,paid-in-capital in excess of par/common stock is $20,000,common stock is $525,000,and retained earnings is $105,000 (deficit),the total stockholders' equity is $880,000.

Prepare entries to record the following: