Question 1

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 cash...

Question 2

Which of the following would appear as a prior period adjustment?

Accepted Answer

A)  loss resulting from the sale of fixed assets
B)  difference between the actual and estimated uncollectible accounts receivable
C)  error in the computation of depreciation expense in the preceding year
D)  loss from the restructuring of assetsE) All of the above
F) B) and C)

Question 3

The date on which a cash dividend becomes a binding legal obligation is the

Accepted Answer

A)  declaration date
B)  date of record
C)  payment date
D)  last day of the fiscal yearE) A) and B)
F) A) and C)

Question 4

For the current year ended, ABC 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% preferred stock for $70 per share.Purchased 1,000 shares of previously issued common stock for $15 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. Match the following amounts to the appropriate term (a-h) .
​
-$100,000

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) B) and H)
J) B) and E)

Question 5

Using the following accounts and balances,prepare the Stockholders' equity section of the balance sheet.Fifty thousand shares of common stock are authorized,and 5,000 shares have been reacquired.

Accepted Answer

The answer of Using the following accounts and balances,prepare the...

Question 6

Twenty percent of all businesses in the United States are corporations,and they account for 80% of the total business dollars generated.

Accepted Answer

A) True 
 B)False

Question 7

Using the following information,prepare the Stockholders' equity section of the balance sheet.Seventy thousand shares of common stock are authorized and 7,000 shares have been reacquired.

Accepted Answer

The answer of Using the following information,prepare the Stockholders' equity...

Question 8

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 9

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

Accepted Answer

A) True 
 B)False

Question 10

If paid-in capital in excess of par/preferred stock is $30,000,preferred stock is $200,000,paid-in capital in excess of par/common stock is $20,000,common stock is $525,000,and retained earnings is $105,000 
(deficit),total stockholders' equity is $880,000.

Accepted Answer

A) True 
 B)False

Question 11

One of the main disadvantages of the corporate form is the

Accepted Answer

A)  professional management
B)  double taxation of dividends
C)  charter
D)  requirement to stockE) A) and B)
F) All of the above

Question 12

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

Accepted Answer

A)  The financial loss that a stockholder may suffer from owning stock in a public company is limited.
B)  Cash dividends paid by a corporation are deductible as expenses by the corporation.
C)  A corporation can own property in its name.
D)  Corporations are required to file federal income tax returns.E) B) and C)
F) A) and D)

Question 13

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

Question 14

Match each of the following stockholders' equity concepts to the most appropriate term (a-h) .
-A class of stock having first rights to dividends of a corporation

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 E)
J) C) and D)

Question 15

Which of the following would not be considered an advantage of the corporate form of organization?

Accepted Answer

A)  government regulation
B)  separate legal existence
C)  continuous life
D)  limited liability of stockholdersE) A) and D)
F) C) and D)

Question 16

The net increase or decrease in Retained Earnings for a period is recorded by closing entries.

Accepted Answer

A) True 
 B)False

Question 17

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 18

A company with 100,000 authorized shares of $4 par common stock issued 40,000 shares at $8.Subsequently,the company declared a 2% stock dividend on a date when the market price was $11 per share.What is the amount transferred from the retained earnings account to paid-in capital accounts as a result of the stock dividend?

Accepted Answer

A)  $3,200
B)  $6,400
C)  $4,800
D)  $8,800E) All of the above
F) C) and D)

Question 19

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

Accepted Answer

A)  60,000
B)  6,000
C)  150,000
D)  15,000E) None of the above
F) B) and D)

Question 20

Preferred stockholders must receive their current-year dividends before the common stockholders can receive any dividends.

Accepted Answer

A) True 
 B)False

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

Correct Answer
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Using the following accounts and balances,prepare the Stockholders' equity section of the balance sheet.Fifty thousand shares of common stock are authorized,and 5,000 shares have been reacquired.

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

Correct Answer
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Using the following information,prepare the Stockholders' equity section of the balance sheet.Seventy thousand shares of common stock are authorized and 7,000 shares have been reacquired.

Correct Answer
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Twenty percent of all businesses in the United States are corporations,and they account for 80% of the total business dollars generated.

Correct Answer
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Which of the following would not be considered an advantage of the corporate form of organization?

Correct Answer
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If paid-in capital in excess of par/preferred stock is $30,000,preferred stock is $200,000,paid-in capital in excess of par/common stock is $20,000,common stock is $525,000,and retained earnings is $105,000 (deficit),total stockholders' equity is $880,000.

Correct Answer
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The net increase or decrease in Retained Earnings for a period is recorded by closing entries.

Correct Answer
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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

Correct Answer
verified

The date on which a cash dividend becomes a binding legal obligation is the

Correct Answer
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Match each of the following stockholders' equity concepts to the most appropriate term (a-h) . -A class of stock having first rights to dividends of a corporation

Correct Answer
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Which of the following would appear as a prior period adjustment?

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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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
verified

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

Correct Answer
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One of the main disadvantages of the corporate form is the

Correct Answer
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Preferred stockholders must receive their current-year dividends before the common stockholders can receive any dividends.

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

Correct AnswerverifiedShow Answer

Using the following accounts and balances,prepare the Stockholders' equity section of the balance sheet.Fifty thousand shares of common stock are authorized,and 5,000 shares have been reacquired.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Using the following information,prepare the Stockholders' equity section of the balance sheet.Seventy thousand shares of common stock are authorized and 7,000 shares have been reacquired.

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Twenty percent of all businesses in the United States are corporations,and they account for 80% of the total business dollars generated.

Correct AnswerverifiedShow Answer

Which of the following would not be considered an advantage of the corporate form of organization?

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If paid-in capital in excess of par/preferred stock is $30,000,preferred stock is $200,000,paid-in capital in excess of par/common stock is $20,000,common stock is $525,000,and retained earnings is $105,000 (deficit),total stockholders' equity is $880,000.

Correct AnswerverifiedShow Answer

The net increase or decrease in Retained Earnings for a period is recorded by closing entries.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The date on which a cash dividend becomes a binding legal obligation is the

Correct AnswerverifiedShow Answer

Match each of the following stockholders' equity concepts to the most appropriate term (a-h) . -A class of stock having first rights to dividends of a corporation

Correct AnswerverifiedShow Answer

Which of the following would appear as a prior period adjustment?

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

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

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

Correct AnswerverifiedShow Answer

One of the main disadvantages of the corporate form is the

Correct AnswerverifiedShow Answer

Preferred stockholders must receive their current-year dividends before the common stockholders can receive any dividends.

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

Correct AnswerverifiedShow 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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Correct Answer
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