Question 1

Cash dividends are normally paid on shares of treasury stock.

Accepted Answer

A) True 
 B)False

Question 2

Stockholders' equity

Accepted Answer

A)   is usually equal to cash on hand
B)   includes paid-in capital and liabilities
C)   includes retained earnings and paid-in capital
D)   is shown on the income statementE) A) and B)
F) A) and C)

Question 3

A corporation has 12,000 shares of $20 par stock outstanding that has a current market value of $150.If the corporation issues a 4-for-1 stock split,the market value of the stock will fall to approximately $50.

Accepted Answer

A) True 
 B)False

Question 4

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) All of the above
F) B) and C)

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

Texas Inc.has 10,000 shares of 6%,$125 par value cumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31.What is the annual dividend on the preferred stock?

Accepted Answer

A)   ​$60 per share
B)   ​$75,000 in total
C)   $10,000 in total
D)   $0.75 per shareE) B) and D)
F) A) and C)

Question 7

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 the third year.

Accepted Answer

A)   $4.50 and $0.25
B)   $3.25 and $0.25
C)   $4.50 and $0.90
D)   $2.00 and $0.25E) A) and B)
F) A) and C)

Question 8

Indicate whether the following actions would (+)increase,(-)decrease,or (0)not affect a company's total assets,liabilities,and stockholders' equity.

Accepted Answer

The answer of Indicate whether the following actions would (+)increase,(-)decrease,or...

Question 9

A corporation has 50,000 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 par value of the stock after the split will be

Accepted Answer

A)   $5
B)   $60
C)   $25
D)   $24E) All of the above
F) None of the above

Question 10

Treasury stock that had been purchased for $5,600 last month was reissued this month for $8,500.The journal entry to record the reissuance would include a credit to

Accepted Answer

A)   Treasury Stock for $8,500
B)   Paid-In Capital from Sale of Treasury Stock for $8,500
C)   Paid-In Capital in Excess of Par-Common Stock for $2,900
D)   Paid-In Capital from Sale of Treasury Stock for $2,900E) A) and D)
F) B) and D)

Question 11

A corporation was organized on January 1 of the current year,with an authorization of 20,000 shares of 4%,$12 par preferred stock,and 100,000 shares of $3 par common stock.
The following selected transactions were completed during the first year of operations:
​
  Journalize the transactions.

Accepted Answer

The answer of A corporation was organized on January 1...

Question 12

Sabas Company has 40,000 shares of $100 par,1% preferred stock and 100,000 shares of $50 par common stock issued and outstanding.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 40,000 shares of $100...

Question 13

Match each of the following stockholders' equity concepts to the most appropriate term (a-h) .
-A class of stock that provides no preference rights to shareholders

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) A) and F)
J) A) and B)

Exam 12: Corporations: Organization, stock Transactions, and Dividends

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 the third year.

Correct Answer
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Sabas Company has 40,000 shares of $100 par,1% preferred stock and 100,000 shares of $50 par common stock issued and outstanding.The following amounts were distributed as dividends: Determine the dividends per share for preferred and common stock for each year.

Correct Answer
verified

Indicate whether the following actions would (+)increase,(-)decrease,or (0)not affect a company's total assets,liabilities,and stockholders' equity.

Correct Answer
verified

Match each of the following stockholders' equity concepts to the most appropriate term (a-h) . -A class of stock that provides no preference rights to shareholders

Correct Answer
verified

Cash dividends are normally paid on shares of treasury stock.

Correct Answer
verified

A corporation was organized on January 1 of the current year,with an authorization of 20,000 shares of 4%,$12 par preferred stock,and 100,000 shares of $3 par common stock. The following selected transactions were completed during the first year of operations: Journalize the transactions.

Correct Answer
verified

Texas Inc.has 10,000 shares of 6%,$125 par value cumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31.What is the annual dividend on the preferred stock?

Correct Answer
verified

A corporation has 50,000 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 par value of the stock after the split will be

Correct Answer
verified

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

Correct Answer
verified

Stockholders' equity

Correct Answer
verified

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

Correct Answer
verified

Treasury stock that had been purchased for $5,600 last month was reissued this month for $8,500.The journal entry to record the reissuance would include a credit to

Correct Answer
verified

A corporation has 12,000 shares of $20 par stock outstanding that has a current market value of $150.If the corporation issues a 4-for-1 stock split,the market value of the stock will fall to approximately $50.

Correct Answer
verified

Exam 12: Corporations: Organization, stock Transactions, and Dividends

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 the third year.

Correct AnswerverifiedShow Answer

Sabas Company has 40,000 shares of $100 par,1% preferred stock and 100,000 shares of $50 par common stock issued and outstanding.The following amounts were distributed as dividends: ​ Determine the dividends per share for preferred and common stock for each year.

Correct AnswerverifiedShow Answer

Indicate whether the following actions would (+)increase,(-)decrease,or (0)not affect a company's total assets,liabilities,and stockholders' equity.

Correct AnswerverifiedShow Answer

Match each of the following stockholders' equity concepts to the most appropriate term (a-h) . -A class of stock that provides no preference rights to shareholders

Correct AnswerverifiedShow Answer

Cash dividends are normally paid on shares of treasury stock.

Correct AnswerverifiedShow Answer

A corporation was organized on January 1 of the current year,with an authorization of 20,000 shares of 4%,$12 par preferred stock,and 100,000 shares of $3 par common stock. The following selected transactions were completed during the first year of operations: ​ Journalize the transactions.

Correct AnswerverifiedShow Answer

Texas Inc.has 10,000 shares of 6%,$125 par value cumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31.What is the annual dividend on the preferred stock?

Correct AnswerverifiedShow Answer

A corporation has 50,000 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 par value of the stock after the split will be

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

Stockholders' equity

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Treasury stock that had been purchased for $5,600 last month was reissued this month for $8,500.The journal entry to record the reissuance would include a credit to

Correct AnswerverifiedShow Answer

A corporation has 12,000 shares of $20 par stock outstanding that has a current market value of $150.If the corporation issues a 4-for-1 stock split,the market value of the stock will fall to approximately $50.

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 the third year.

Correct Answer
verified

Sabas Company has 40,000 shares of $100 par,1% preferred stock and 100,000 shares of $50 par common stock issued and outstanding.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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A corporation was organized on January 1 of the current year,with an authorization of 20,000 shares of 4%,$12 par preferred stock,and 100,000 shares of $3 par common stock. The following selected transactions were completed during the first year of operations: Journalize the transactions.

Correct Answer
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