Question 1

Treasury stock that was purchased for $3,000 is sold for $3,500. As a result of these two transactions combined

Accepted Answer

A)   income will be increased by $500
B)   stockholders' equity will be increased by $3,500
C)   stockholders' equity will be increased by $500
D)   stockholders' equity will not changeE) A) and B)
F) None of the above

Question 2

Assume that retained earnings had a beginning balance of $75,000. Match the following amounts to the appropriate term (a-h) .
-Total Paid-In Capital = Preferred Stock + Excess of Issue Price over Par 
(Preferred)  + Common Stock + Excess of Issue Price over Par 
(Common)  = $150,000 + $60,000 + $20,000 + $100,000 = $330,000

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) A) and C)
J) E) and F)

Question 3

Solar Company has 600,000 shares of $75 par common stock outstanding. On February 13, Solar declared a 3% stock dividend to be issued on April 30 to stockholders of record on March 14. The market price of the stock was $90 per share on February 13.​Journalize the entries required on February 13, March 14, and April 30.

Accepted Answer

The answer of Solar Company has 600,000 shares of $75...

Question 4

When Wisconsin Corporation was formed on January 1, the corporate charter provided for 100,000 shares of $10 par value common stock. During its first month of operation, the corporation issued 8,500 shares of stock at a price of $16 per share.​The entry to record the above transaction would include a

Accepted Answer

A)   debit to Cash for $85,000
B)   credit to Common Stock for $136,000
C)   credit to Paid-In Capital in Excess of Par-Common Stock for $51,000
D)   debit to Common Stock for $85,000E) All of the above
F) B) and C)

Question 5

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

Accepted Answer

A)   the number of shares of common stock outstanding
B)   the number of shares of common stock issued
C)   the number of shares of common stock authorized
D)   All of these choicesE) B) and D)
F) All of the above

Question 6

For accounting purposes, stated value is treated the same way as par value.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A)  Cash dividend
B)  Date of record
C)  Stock Dividends Distributable
D)  Date of declaration
E)  Treasury stockF) Preferred stockG) Date of paymentH) Paid-In Capital in Excess of ParI) None of the above
J) A) and D)

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

The entry to record the issuance of common stock at a price above par includes a debit to

Accepted Answer

A)   Organizational Expenses
B)   Common Stock
C)   Cash
D)   Paid-In Capital in Excess of Par-Common StockE) C) and D)
F) B) and D)

Question 10

The excess of sales price of treasury stock over its cost should be credited to

Accepted Answer

A)   Treasury Stock Receivable
B)   Premium on Capital Stock
C)   Paid-In Capital from Sale of Treasury Stock
D)   Income from Sale of Treasury StockE) A) and D)
F) B) and C)

Question 11

Those most responsible for the major policy decisions of a corporation are the

Accepted Answer

A)   management
B)   board of directors
C)   employees
D)   stockholdersE) A) and C)
F) All of the above

Question 12

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.

Accepted Answer

The answer of Sabas Company has 20,000 shares of $100...

Question 13

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.

Accepted Answer

A) True 
 B)False

Question 14

On February 13, Epperson Company issued for cash 75,000 shares of no-par common stock 
(with a stated value of $125) at $140. On September 9, Epperson issued at par 15,000 shares of 1%, $60 par preferred stock at par for cash. On November 23, Epperson issued for cash 8,000 shares of 1%, $60 par preferred stock at $70.​Journalize the entries to record the February 13, September 9, and November 23 transactions.

Accepted Answer

The answer of On February 13, Epperson Company issued for...

Question 15

Match each of the following stockholders' equity concepts to the most appropriate term (a-h) .
-The dollar amount assigned to each share of stock

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) All of the above
J) None of the above

Question 16

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

Accepted Answer

A)   formal action by the board of directors
B)   market value in excess of par value per share
C)   sufficient cash
D)   sufficient retained earningsE) B) and C)
F) B) and D)

Question 17

A corporation, which had 18,000 shares of common stock outstanding, declared a 3-for-1 stock split.
(a)What will be the number of shares outstanding after the split?
(b)If the common stock had a market price of $240 per share before the stock split, what would be an approximate market price per share after the split?
(c)Journalize the entry to record the stock split.

Accepted Answer

(a)54,000 sharesNumber of Shares Outst...

Question 18

Match each of the following stockholders' equity concepts to the appropriate term (a-h) .
-The rules and procedures for conducting a corporation's affairs

Accepted Answer

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

Question 19

On April 10, a company acquired land in exchange for 1,000 shares of $20 par common stock with a current market price of $73. Journalize this transaction.

Accepted Answer

The answer of On April 10, a company acquired land...

Question 20

How is treasury stock shown on the balance sheet?

Accepted Answer

A)   as an asset
B)   as a decrease in stockholders' equity
C)   as an increase in stockholders' equity
D)   Treasury stock is not shown on the balance sheet.E) All of the above
F) None of the above

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

Those most responsible for the major policy decisions of a corporation are the

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

Correct Answer
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Correct Answer
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(a)54,000 sharesNumber of Shares Outst...
View Answer

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.

Correct Answer
verified

On April 10, a company acquired land in exchange for 1,000 shares of $20 par common stock with a current market price of $73. Journalize this transaction.

Correct Answer
verified

Match each of the following stockholders' equity concepts to the most appropriate term (a-h) . -The dollar amount assigned to each share of stock

Correct Answer
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Which of the following amounts should be disclosed in the Stockholders' equity section of the balance sheet?

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

Correct Answer
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Correct Answer
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Correct Answer
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How is treasury stock shown on the balance sheet?

Correct Answer
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The entry to record the issuance of common stock at a price above par includes a debit to

Correct Answer
verified

For accounting purposes, stated value is treated the same way as par value.

Correct Answer
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Treasury stock that was purchased for $3,000 is sold for $3,500. As a result of these two transactions combined

Correct Answer
verified

Match each of the following stockholders' equity concepts to the appropriate term (a-h) . -The rules and procedures for conducting a corporation's affairs

Correct Answer
verified

The excess of sales price of treasury stock over its cost should be credited to

Correct Answer
verified

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.

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

Correct Answer
verified

When Wisconsin Corporation was formed on January 1, the corporate charter provided for 100,000 shares of $10 par value common stock. During its first month of operation, the corporation issued 8,500 shares of stock at a price of $16 per share.The entry to record the above transaction would include a

Correct Answer
verified

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

Those most responsible for the major policy decisions of a corporation are the

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct Answerverified​(a)54,000 sharesNumber of Shares Outst...View AnswerShow Answer

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.

Correct AnswerverifiedShow Answer

On April 10, a company acquired land in exchange for 1,000 shares of $20 par common stock with a current market price of $73. Journalize this transaction.

Correct AnswerverifiedShow Answer

Match each of the following stockholders' equity concepts to the most appropriate term (a-h) . -The dollar amount assigned to each share of stock

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

How is treasury stock shown on the balance sheet?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The entry to record the issuance of common stock at a price above par includes a debit to

Correct AnswerverifiedShow Answer

For accounting purposes, stated value is treated the same way as par value.

Correct AnswerverifiedShow Answer

Treasury stock that was purchased for $3,000 is sold for $3,500. As a result of these two transactions combined

Correct AnswerverifiedShow Answer

Match each of the following stockholders' equity concepts to the appropriate term (a-h) . -The rules and procedures for conducting a corporation's affairs

Correct AnswerverifiedShow Answer

The excess of sales price of treasury stock over its cost should be credited to

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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(a)54,000 sharesNumber of Shares Outst...
View Answer

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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.

Correct Answer
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Correct Answer
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Correct Answer
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