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

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Question 61

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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 the first year.

A) $0.50 and $0.10
B) $0 and $0.10
C) $0.50 and $0
D) $2.00 and $0

E) None of the above
F) A) and B)

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Question 62

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On January 1,Year 1,a company had the following transactions:​Issued 10,000 shares of $2 par common stock for $12 per share.Issued 3,000 shares of $50 par,6% cumulative preferred stock for $70 per share.Purchased 1,000 shares of previously issued common stock for $15 per share.​The company had the following dividend information available:​​ Using the following format,fill in the correct values for each year:​

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Question 63

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A large retained earnings account means that there is cash available to pay dividends.

The main source of paid-in capital is from issuing stock.

The primary purpose of a stock split is to reduce the number of shares outstanding in order to encourage more investors to enter the market for the company's shares.

Double taxation is a disadvantage of a corporation because the corporation has to pay income taxes at twice the rate applied to partnerships.

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

The following transaction took place for XYZ Corporation:​​ Required (a)Record the journal entries required by these events. (b)Briefly describe the significance of November 20.

A prior period adjustment should be reported as an adjustment to the retained earnings balance at the beginning of the period in which the adjustment was made.

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

Treasury stock shares are

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

Firefly,Inc.reported the following results for the year ending July 31:​ Prepare a retained earnings statement for the fiscal year ended July 31.

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

The primary purpose of a stock split is to

Macy Company has 10,000 shares of 2% cumulative preferred stock of $50 par and 25,000 shares of $75 par common stock.The following amounts were distributed as dividends:​ Determine the dividends per share for preferred and common stock for each year.

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.

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

Prepare entries to record the following:

The price at which a stock can be sold depends on a number of factors.Which of the following is not one of those factors?