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 81

Multiple Choice

Review LaterAdd Note

Review Later

Significant changes in stockholders' equity are reported in

A) income statement
B) retained earnings statement
C) statement of stockholders' equity
D) statement of cash flows

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

Correct Answer

verified

Show Answer

Question 82

Multiple Choice

Review LaterAdd Note

Review Later

Nevada Corporation has 30,000 shares of $25 par 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

A) 60,000
B) 6,000
C) 150,000
D) 15,000

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

Correct Answer

verified

Show Answer

Question 83

True/False

Review LaterAdd Note

Cash dividends are normally paid on shares of treasury stock.

The amount of capital paid in by the stockholders of the corporation is called legal capital.

Paid-in capital may originate from real estate transactions.

Which of the following statements concerning taxation is accurate?

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: Year 1: $10,000 Year 2: 45,000 Year 3: 90,000 Determine the dividends per share for preferred and common stock for the first year.

Oregon, Inc. reported net income of $105,000. During the current year, the company had 5,000 shares of $100 par, 5% preferred stock and 10,000 of $5 par common stock outstanding. Oregon's earnings per share is

Characteristics of a corporation include

Which of the following is not a right possessed by common stockholders of a corporation?

A corporation has 10,000 shares of $100 par stock outstanding. If the corporation issues a 5-for-1 stock split, the number of shares outstanding after the split will be 40,000.

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?

On May 1, 10,000 shares of $10 par common stock were issued at $30, and on May 7, 5,000 shares of $50 par preferred stock were issued at $111. Journalize the entries for May 1 and May 7.

The number of shares of outstanding stock is equal to the number of shares authorized minus the number of shares issued.

On April 1, 10,000 shares of $5 par common stock were issued at $22, and on April 7, 5,000 shares of $50 par preferred stock were issued at $104. Journalize the entries for April 1 and 7.

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. -$20,000

The declaration of a cash dividend decreases a corporation's stockholders equity and decreases its assets.

Match the following stockholders' equity concepts to the appropriate term a-h) . -Owners of this class of stock are entitled to receive dividends first

A corporation has 50,000 shares of $28 par stock outstanding that has a current market value of $150 per share. If the corporation issues a 4-for-1 stock split, the market value of the stock will fall to approximately

Which of the following is not a characteristic of a corporation?