FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 11: Corporations: Organization, stock Transactions, and Dividends

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 1

Multiple Choice

Review LaterAdd Note

Review Later

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 a share.What is the amount transferred from the retained earnings account to paid-in capital accounts as a result of the stock dividend?

A) $3,200
B) $6,400
C) $4,800
D) $8,800

E) B) and C)
F) C) and D)

Correct Answer

verified

Show Answer

Question 2

Multiple Choice

Review LaterAdd Note

Review Later

The primary purpose of a stock split is to

A) increase paid-in capital
B) reduce the market price of the stock per share
C) increase the market price of the stock per share
D) increase retained earnings

E) A) and C)
F) A) and B)

Correct Answer

verified

Show Answer

Question 3

Multiple Choice

Review LaterAdd Note

Which of the following is not true of a corporation?

The excess of issue price over par of common stock is termed a(n)

The dates of importance in connection with a cash dividend of $50,000 on a corporation's common stock are January 15,February 15,and March 15.Journalize the entries required on each date.

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

Stockholders' equity

Organizational expenses are classified as intangible assets on the balance sheet.

If a corporation is liquidated,preferred stockholders are paid before the creditors and before the common stockholders.

One of the main disadvantages of the corporate form is the

Prepare entries to record the following selected transactions completed during the current fiscal year:

The Sneed Corporation issues 10,000 shares of $50 par value 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

A corporation purchases 10,000 shares of its own $10 par common stock for $35 per share,recording it at cost.What will be the effect on total stockholders' equity?

The stock dividends distributable account is listed in the current liability section of the balance sheet.

When no-par stock is issued,the Common Stock account is credited for the selling price of the stock issued.

The charter of a corporation provides for the issuance of 100,000 shares of common stock.Assume that 40,000 shares were originally issued and 10,000 were subsequently reacquired.What is the number of shares outstanding?

On April 2nd a corporation purchased for cash 5,000 shares of its own $10 par common stock at $16 a share.They sold 3,000 of the treasury shares at $19 a share on June 15th.The remaining 2,000 shares were sold on November 10th for $12 a share.

The declaration and issuance of a stock dividend does not affect the total amount of a corporation's assets,liabilities,or stockholders' equity.

Retained earnings represents past net incomes less past dividends,therefore any balance in this account would be listed on the income statement.

A company has 10,000 shares of $10 par common stock outstanding.Prepare entries to record the following: