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 101

Multiple Choice

Review LaterAdd Note

Review Later

A company with 100,000 authorized shares of $4 par common stock issued 40,000 shares at $8. Subsequently, the company declared a 2% stock dividend on a date when the market price was $11 a share. What is the amount transferred from the retained earnings account to paid-in capital accounts as a result of the stock dividend?

A) $3,200
B) $6,400
C) $4,800
D) $8,800

E) A) and B)
F) All of the above

Correct Answer

verified

Show Answer

Question 102

Essay

Review LaterAdd Note

Review Later

Sabas Company has 20,000 shares of $100 par, 1% noncumulative preferred stock and 100,000 shares of $50 par common stock. The following amounts were distributed as dividends: Year 1: $10,000 Year 2: 15,000 Year 3: 90,000 Determine the dividends per share for preferred and common stock for each year.

Correct Answer

verified

Show Answer

Question 103

Multiple Choice

Review LaterAdd Note

On January 1, Vermont Corporation had 40,000 shares of $10 par value common stock issued and outstanding. All 40,000 shares had been issued in a prior period at $20.00 per share. On February 1, Vermont purchased 3,750 shares of treasury stock for $24 per share and later sold the treasury shares for $21 per share on March 1. The journal entry to record the purchase of the treasury shares on February 1, would include a

Match the following stockholders' equity concepts to the appropriate term a-h) . -Shares of common stock that were issued and then reacquired by a company

If 100 shares of treasury stock were purchased for $50 per share and then sold at $60 per share, $1,000 of income is reported on the income statement.

Earnings per share

A reduction of par or stated value of stock results from a

If the dividend amount of preferred stock, $50 par value, is quoted as 8%, then the dividends per share would be $4.

The declaration of a stock dividend decreases a corporation's stockholders' equity and increases its liabilities.

Retained earnings

Which of the following is not a prerequisite to paying a cash dividend?

For the current year ended, ABC had the following transactions: - Issued 10,000 shares of $2.00 par value common stock for $12.00 per share. - Issued 3,000 shares of $50 par value 6% preferred stock for $70 per share. - Purchased 1,000 shares of previously issued common stock for $15.00 per share. - Reported net income of $200,000. - Declared and paid a total dividend of $40,000. Assume that retained earnings had a beginning balance of $75,000. -$235,000

When a corporation issues stock at a premium, it reports the premium as an other income item on the income statement.

On June 5, Belen Corporation reacquired 3,300 shares of its own common stock at $45 per share. On July 15, Belen sold 2,000 of the reacquired shares at $48 per share. On August 30, Belen sold the remaining shares at $42 per share. Journalize the transactions of June 5, July 15, and August 30.

Treasury stock should be reported in the financial statements of a corporation as an)

The charter of a corporation provides for the issuance of 100,000 shares of common stock. Assume that 60,000 shares were originally issued and 10,000 were subsequently reacquired. What is the amount of cash dividends to be paid if a $2 per share dividend is declared?

Match each of the following stockholders' equity concepts to the appropriate term a-h) . -Corporate income distributed to stockholders

The two main sources of stockholders' equity are investments contributed by stockholders and net income retained in the business.

A stock split results in a transfer at market value from retained earnings to paid-in capital.

The day on which the board of directors of the corporation distributes a dividend is called the declaration date.