Question 1

At December 31, Idaho Company had the following ending account balances:??  Prepare the Stockholders' equity section of the balance sheet in good form with all of the required disclosures.

Accepted Answer

The answer of At December 31, Idaho Company had the...

Question 2

Which of the following is not classified as paid-in capital on the balance sheet?

Accepted Answer

A)   common stock
B)   common stock distributable
C)   excess of issue price over par
D)   treasury stockE) A) and B)
F) B) and C)

Question 3

Prepare entries to record the following transactions for Maine Corp.:
(a)Issued 2,000 shares of $10 par common stock at $72 for cash.
(b)Issued 2,500 shares of common stock in exchange for land with a fair market price of $130,000.
(c)Purchased 400 shares of treasury stock at $70.
(d)Sold the 400 shares of treasury stock purchased in 
(c) at $76.

Accepted Answer

The answer of Prepare entries to record the following transactions...

Question 4

Which of the following is the appropriate general journal entry to record the declaration of cash dividends?

Accepted Answer

A)   Retained EarningsCash
B)   Cash Dividends PayableCash
C)   Paid-In CapitalCash Dividends Payable
D)   Cash DividendsCash Dividends PayableE) All of the above
F) None of the above

Question 5

In which section of the financial statements would Paid-In Capital from Sale of Treasury Stock be reported?

Accepted Answer

A)   Other expense on income statement
B)   Intangible asset on the balance sheet
C)   Stockholders' equity on balance sheet
D)   Other income on income statementE) A) and B)
F) C) and D) C

Question 6

The authorized stock of a corporation

Accepted Answer

A)   must be recorded in a formal accounting entry
B)   only reflects the initial capital needs of the company
C)   is indicated in its bylaws
D)   is indicated in its charterE) A) and B)
F) None of the above

Question 7

Nebraska Inc. issues 3,000 shares of common stock for $45,000. The stock has a stated value of $10 per share. The journal entry to record the stock issuance would include a credit to Common Stock for

Accepted Answer

A)   $30,000
B)   $45,000
C)   $15,000
D)   $3,000E) A) and B)
F) None of the above

Question 8

A corporation purchased 1,000 shares of its own $5 par common stock at $10 and subsequently sold 500 of the shares at $20. What amount of revenue is realized from the sale?

Accepted Answer

A)   $0
B)   $5,000
C)   $2,500
D)   $10,000E) A) and D)
F) None of the above A

Question 9

Treasury stock shares are

Accepted Answer

A)   shares held by the U.S. Treasury Department
B)   part of the total outstanding shares but not part of the total issued shares of a corporation
C)   unissued shares that are held by the treasurer of the corporation
D)   issued shares that have been reacquired by a corporationE) A) and D)
F) All of the above

Question 10

Match each of the following stockholders' equity concepts to the appropriate term (a-h) .
-Group that meets periodically to establish corporate policies

Accepted Answer

A)  Articles of incorporation
B)  Limited liability
C)  Bylaws
D)  Corporation
E)  Public corporationF) Board of directorsG) Private corporationH) DividendsI) A) and D)
J) B) and F)

Question 11

Assume that retained earnings had a beginning balance of $75,000. Match the following amounts to the appropriate term (a-h) .
-Total Stockholders' Equity = Total Paid-In Capital + Retained Earnings - Treasury Stock = $330,000 + $235,000 - $15,000 = $550,000

Accepted Answer

A)  Treasury stock
B)  Retained earnings
C)  Preferred stock
D)  Excess of issue price over par (preferred) 
E)  Common stockF) Total paid-in capitalG) Excess of issue price over par (common) H) Total stockholders' equityI) C) and D)
J) E) and H)

Question 12

The ability of a corporation to obtain capital is

Accepted Answer

A)   less than the ability of a partnership
B)   about the same as the ability of a partnership
C)   restricted because of the limited life of the corporation
D)   enhanced because of limited liability and ease of share transferabilityE) All of the above
F) None of the above

Question 13

When common stock is issued in exchange for land, the land should be recorded in the accounts at the par value of the stock issued.

Accepted Answer

A) True 
 B)False

Question 14

Match each of the following stockholders' equity concepts to the appropriate term (a-h) .
-A legal entity, separate from the people who create and operate it

Accepted Answer

A)  Articles of incorporation
B)  Limited liability
C)  Bylaws
D)  Corporation
E)  Public corporationF) Board of directorsG) Private corporationH) DividendsI) A) and B)
J) A) and C)

Question 15

The amount of a corporation's retained earnings that has been restricted/appropriated should be reported in the notes to the financial statements.

Accepted Answer

A) True 
 B)False

Question 16

Match each of the following stockholders' equity concepts to the appropriate term (a-h) .
-A company whose shares are not bought or sold in public markets

Accepted Answer

A)  Articles of incorporation
B)  Limited liability
C)  Bylaws
D)  Corporation
E)  Public corporationF) Board of directorsG) Private corporationH) DividendsI) D) and F)
J) B) and H) G

Question 17

Match each of the following stockholders' equity concepts to the most appropriate term (a-h) .
-A financial institution that records and maintains records of another company's stockholders

Accepted Answer

A)  Authorized shares
B)  Issued shares
C)  Outstanding shares
D)  Par value
E)  Common stockF) Preferred stockG) Paid-In Capital in Excess of ParH) Transfer agentI) C) and E)
J) C) and F)

Question 18

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.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

Sneed Corporation issues 10,000 shares of $50 par preferred stock for cash at $75 per share. The entry to record the transaction will consist of a debit to Cash for $750,000 and a credit or credits to

Accepted Answer

A)   Preferred Stock for $750,000
B)   Preferred Stock for $500,000 and Paid-In Capital in Excess of Par-Preferred Stock for $250,000
C)   Preferred Stock for $500,000 and Retained Earnings for $250,000
D)   Paid-In Capital from Preferred Stock for $750,000E) A) and D)
F) A) and C)

Exam 13: Corporations: Organization, Stock Transactions, and Dividends

At December 31, Idaho Company had the following ending account balances:?? Prepare the Stockholders' equity section of the balance sheet in good form with all of the required disclosures.

Correct Answer
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Which of the following is not classified as paid-in capital on the balance sheet?

Correct Answer
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Correct Answer
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Which of the following is the appropriate general journal entry to record the declaration of cash dividends?

Correct Answer
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In which section of the financial statements would Paid-In Capital from Sale of Treasury Stock be reported?

Correct Answer
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C

The authorized stock of a corporation

Correct Answer
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Nebraska Inc. issues 3,000 shares of common stock for $45,000. The stock has a stated value of $10 per share. The journal entry to record the stock issuance would include a credit to Common Stock for

Correct Answer
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A corporation purchased 1,000 shares of its own $5 par common stock at $10 and subsequently sold 500 of the shares at $20. What amount of revenue is realized from the sale?

Correct Answer
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A

Treasury stock shares are

Correct Answer
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Match each of the following stockholders' equity concepts to the appropriate term (a-h) . -Group that meets periodically to establish corporate policies

Correct Answer
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Assume that retained earnings had a beginning balance of $75,000. Match the following amounts to the appropriate term (a-h) . -Total Stockholders' Equity = Total Paid-In Capital + Retained Earnings - Treasury Stock = $330,000 + $235,000 - $15,000 = $550,000

Correct Answer
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The ability of a corporation to obtain capital is

Correct Answer
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When common stock is issued in exchange for land, the land should be recorded in the accounts at the par value of the stock issued.

Correct Answer
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Match each of the following stockholders' equity concepts to the appropriate term (a-h) . -A legal entity, separate from the people who create and operate it

Correct Answer
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The amount of a corporation's retained earnings that has been restricted/appropriated should be reported in the notes to the financial statements.

Correct Answer
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Match each of the following stockholders' equity concepts to the appropriate term (a-h) . -A company whose shares are not bought or sold in public markets

Correct Answer
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G

Match each of the following stockholders' equity concepts to the most appropriate term (a-h) . -A financial institution that records and maintains records of another company's stockholders

Correct Answer
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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.

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

Correct Answer
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Sneed Corporation issues 10,000 shares of $50 par preferred stock for cash at $75 per share. The entry to record the transaction will consist of a debit to Cash for $750,000 and a credit or credits to

Correct Answer
verified

Exam 13: Corporations: Organization, Stock Transactions, and Dividends

At December 31, Idaho Company had the following ending account balances:?? Prepare the Stockholders' equity section of the balance sheet in good form with all of the required disclosures.

Correct AnswerverifiedShow Answer

Which of the following is not classified as paid-in capital on the balance sheet?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is the appropriate general journal entry to record the declaration of cash dividends?

Correct AnswerverifiedShow Answer

In which section of the financial statements would Paid-In Capital from Sale of Treasury Stock be reported?

Correct AnswerverifiedC

The authorized stock of a corporation

Correct AnswerverifiedShow Answer

Nebraska Inc. issues 3,000 shares of common stock for $45,000. The stock has a stated value of $10 per share. The journal entry to record the stock issuance would include a credit to Common Stock for

Correct AnswerverifiedShow Answer

A corporation purchased 1,000 shares of its own $5 par common stock at $10 and subsequently sold 500 of the shares at $20. What amount of revenue is realized from the sale?

Correct AnswerverifiedA

Treasury stock shares are

Correct AnswerverifiedShow Answer

Match each of the following stockholders' equity concepts to the appropriate term (a-h) . -Group that meets periodically to establish corporate policies

Correct AnswerverifiedShow Answer

Assume that retained earnings had a beginning balance of $75,000. Match the following amounts to the appropriate term (a-h) . -Total Stockholders' Equity = Total Paid-In Capital + Retained Earnings - Treasury Stock = $330,000 + $235,000 - $15,000 = $550,000

Correct AnswerverifiedShow Answer

The ability of a corporation to obtain capital is

Correct AnswerverifiedShow Answer

When common stock is issued in exchange for land, the land should be recorded in the accounts at the par value of the stock issued.

Correct AnswerverifiedShow Answer

Match each of the following stockholders' equity concepts to the appropriate term (a-h) . -A legal entity, separate from the people who create and operate it

Correct AnswerverifiedShow Answer

The amount of a corporation's retained earnings that has been restricted/appropriated should be reported in the notes to the financial statements.

Correct AnswerverifiedShow Answer

Match each of the following stockholders' equity concepts to the appropriate term (a-h) . -A company whose shares are not bought or sold in public markets

Correct AnswerverifiedG

Match each of the following stockholders' equity concepts to the most appropriate term (a-h) . -A financial institution that records and maintains records of another company's stockholders

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Sneed Corporation issues 10,000 shares of $50 par preferred stock for cash at $75 per share. The entry to record the transaction will consist of a debit to Cash for $750,000 and a credit or credits to

Correct AnswerverifiedShow Answer

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C

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A

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G

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