Question 1

The dates of importance in connection with a cash dividend of $65,000 on a corporation's common stock are January 15, February 15, and March 15. Journalize the entries required on each date.

Accepted Answer

The answer of The dates of importance in connection with...

Question 2

What is the total stockholders' equity based on the following data?

Accepted Answer

A)   $935,000
B)   $885,000
C)   $835,000
D)   $560,000E) B) and C)
F) All of the above

Question 3

The Sneed Corporation issues 10,000 shares of $50 par value preferred stock for cash at $70 per share. The entry to record the transaction will consist of a debit to Cash for $700,000 and a credit or credits to

Accepted Answer

A)   Preferred Stock for $700,000.
B)   Preferred stock for $500,000 and Paid-in Capital in Excess of Par Value-Preferred Stock for $200,000.
C)   Preferred Stock for $500,000 and Retained Earnings for $200,000.
D)   Paid-in Capital from Preferred Stock for $700,000.E) All of the above
F) A) and B)

Question 4

What is the total stockholders' equity based on the following account balances?

Accepted Answer

A)   $740,000
B)   $730,000
C)   $720,000
D)   $640,000E) B) and D)
F) B) and C)

Question 5

Prepare entries to record the following:

Accepted Answer

(a)<br> <img  loading="lazy" src="/assets/images/blured-textbook.svg" class="d-inline m-1" alt="blured image" width="139" height="30"> (b)<br>...

Question 6

Prepare entries to record the following:

Accepted Answer

(a)<br> <img  loading="lazy" src="/assets/images/blured-textbook.svg" class="d-inline m-1" alt="blured image" width="139" height="30"> (b)<br>...

Question 7

The cost of treasury stock is deducted from total paid-in capital and retained earnings in determining total stockholders' equity.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following statements is not true about a 2-for-1 split?

Accepted Answer

A)   Par value per share is reduced to half of what it was before the split.
B)   Total contributed capital increases.
C)   The market price will probably decrease.
D)   A stockholder with ten shares before the split owns twenty shares after the split.E) B) and C)
F) A) and D)

Question 9

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

Accepted Answer

A)   discount
B)   income
C)   deficit
D)   premiumE) B) and C)
F) A) and B)

Question 10

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

Accepted Answer

A)   management.
B)   board of directors.
C)   employees.
D)   stockholders.E) All of the above
F) A) and B)

Question 11

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:
  Required:
Determine the dividends per share for preferred and common stock for each year.

Accepted Answer

The answer of Macy Company has 10,000 shares of 2%...

Question 12

The declaration and issuance of a stock dividend does affect the total amount of a corporation's assets, liabilities, or stockholders' equity.

Accepted Answer

A) True 
 B)False

Question 13

A restriction/appropriation of retained earnings

Accepted Answer

A)   decreases total assets
B)   increases total retained earnings
C)   decreases total retained earnings
D)   has no effect on total retained earningsE) A) and C)
F) A) and B)

Question 14

The cumulative effect of the declaration and payment of a cash dividend on a company's financial statements is to

Accepted Answer

A)   decrease total liabilities and stockholders' equity.
B)   increase total expenses and total liabilities.
C)   increase total assets and stockholders' equity.
D)   decrease total assets and stockholders' equity.E) B) and D)
F) B) and C)

Question 15

The reduction of par or stated value of stock by issuance of a proportionate number of additional shares is termed a

Accepted Answer

A)   liquidating dividend
B)   stock split
C)   stock option
D)   preferred dividendE) A) and B)
F) A) and C)

Question 16

A disadvantage of the corporate form of business entity is

Accepted Answer

A)   mutual agency for stockholders
B)   unlimited liability for stockholders
C)   corporations are subject to more governmental regulations
D)   the ease of transfer of ownershipE) B) and C)
F) A) and B)

Question 17

On May 10, a company issued for cash 1,500 shares of no-par common stock (with a stated value of $2) at $14, and on May 15, it issued for cash 2,000 shares of $15 par preferred stock at $58.
Journalize the entries for May 10 and 15, assuming that the common stock is to be credited with the stated value.

Accepted Answer

The answer of On May 10, a company issued for...

Question 18

Which of the following statements concerning taxation is accurate?

Accepted Answer

A)   Corporations pay federal income taxes but not state income taxes.
B)   Corporations pay federal and state income taxes.
C)   Only the owners must pay taxes on corporate income.
D)   Corporations pay income taxes but their owners do not.E) All of the above
F) C) and D)

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

Marcos Company, which had 35,000 shares of common stock outstanding, declared a 4-for-1 stock split.
Required:

Accepted Answer

(1) 140,000 shares (...

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

The cost of treasury stock is deducted from total paid-in capital and retained earnings in determining total stockholders' equity.

Correct Answer
verified

What is the total stockholders' equity based on the following account balances?

Correct Answer
verified

A disadvantage of the corporate form of business entity is

Correct Answer
verified

Prepare entries to record the following:

Correct Answer
verified
(a)
(b)
...
View Answer

Which of the following statements concerning taxation is accurate?

Correct Answer
verified

Which of the following statements is not true about a 2-for-1 split?

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

The reduction of par or stated value of stock by issuance of a proportionate number of additional shares is termed a

Correct Answer
verified

The dates of importance in connection with a cash dividend of $65,000 on a corporation's common stock are January 15, February 15, and March 15. Journalize the entries required on each date.

Correct Answer
verified

A restriction/appropriation of retained earnings

Correct Answer
verified

Marcos Company, which had 35,000 shares of common stock outstanding, declared a 4-for-1 stock split. Required:

Correct Answer
verified
(1) 140,000 shares (...
View Answer

The declaration and issuance of a stock dividend does affect the total amount of a corporation's assets, liabilities, or stockholders' equity.

Correct Answer
verified

Prepare entries to record the following:

Correct Answer
verified
(a)
(b)
...
View Answer

The Sneed Corporation issues 10,000 shares of $50 par value preferred stock for cash at $70 per share. The entry to record the transaction will consist of a debit to Cash for $700,000 and a credit or credits to

Correct Answer
verified

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

Correct Answer
verified

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: Required: Determine the dividends per share for preferred and common stock for each year.

Correct Answer
verified

Correct Answer
verified

The cumulative effect of the declaration and payment of a cash dividend on a company's financial statements is to

Correct Answer
verified

What is the total stockholders' equity based on the following data?

Correct Answer
verified

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

The cost of treasury stock is deducted from total paid-in capital and retained earnings in determining total stockholders' equity.

Correct AnswerverifiedShow Answer

What is the total stockholders' equity based on the following account balances?

Correct AnswerverifiedShow Answer

A disadvantage of the corporate form of business entity is

Correct AnswerverifiedShow Answer

Prepare entries to record the following:

Correct Answerverified(a) (b)...View AnswerShow Answer

Which of the following statements concerning taxation is accurate?

Correct AnswerverifiedShow Answer

Which of the following statements is not true about a 2-for-1 split?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The reduction of par or stated value of stock by issuance of a proportionate number of additional shares is termed a

Correct AnswerverifiedShow Answer

The dates of importance in connection with a cash dividend of $65,000 on a corporation's common stock are January 15, February 15, and March 15. Journalize the entries required on each date.

Correct AnswerverifiedShow Answer

A restriction/appropriation of retained earnings

Correct AnswerverifiedShow Answer

Marcos Company, which had 35,000 shares of common stock outstanding, declared a 4-for-1 stock split. Required:

Correct Answerverified(1) 140,000 shares (...View AnswerShow Answer

The declaration and issuance of a stock dividend does affect the total amount of a corporation's assets, liabilities, or stockholders' equity.

Correct AnswerverifiedShow Answer

Prepare entries to record the following:

Correct Answerverified(a) (b)...View AnswerShow Answer

The Sneed Corporation issues 10,000 shares of $50 par value preferred stock for cash at $70 per share. The entry to record the transaction will consist of a debit to Cash for $700,000 and a credit or credits to

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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: Required: Determine the dividends per share for preferred and common stock for each year.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The cumulative effect of the declaration and payment of a cash dividend on a company's financial statements is to

Correct AnswerverifiedShow Answer

What is the total stockholders' equity based on the following data?

Correct AnswerverifiedShow Answer

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(a)
(b)
...
View Answer

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Correct Answer
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(1) 140,000 shares (...
View Answer

Correct Answer
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Correct Answer
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(a)
(b)
...
View Answer

Correct Answer
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