Exam 11: Corporations: Organization, Stock Transactions

Outstanding stock of the Core Corporation included 20,000 shares of $5 par common stock and 10,000 shares of 6%, $10 par noncumulative preferred stock. In 2017, Core declared and paid dividends of $4,000. In 2018, Core declared and paid dividends of $12,000. How much of the 2018 dividend was distributed to preferred shareholders?

The par value of stock issued for noncash assets is never a factor in determining the cost of the assets received.

Vega Corporation's December 31, 2018 balance sheet showed the following: 8% preferred stock, $20 par value, cumulative, 10,000 shares Vega declared and paid a $58,000 cash dividend on December 15, 2018. If the company's dividends in arrears prior to that date were $10,000, Vega's common stockholders received

Which of the following is not true of a corporation?

Paid-In Capital in Excess of Stated Value

When stock dividends are distributed,

The corporate charter of Martin Corporation allows the issuance of a maximum of 4,000,000 shares of $1 par value common stock. During its first three years of operation, Martin issued 3,200,000 shares at $15 per share. It later acquired 30,000 of these shares as treasury stock for $25 per share. Instructions Based on the above information, answer the following questions: (a) How many shares were authorized? (b) How many shares were issued? (c) How many shares are outstanding? (d) What is the balance of the Common Stock account? (e) What is the balance of the Treasury Stock account?

On the dividend record date,

Rouse Corporation's December 31, 2018 balance sheet showed the following: 8% preferred stock, $10 par value, cumulative, 20,000 shares Rouse's total stockholders' equity was

On December 31, 2018, Stock, Inc. has 4,000 shares of 6% $100 par value cumulative preferred stock and 60,000 shares of $10 par value common stock outstanding. On December 31, 2018, the directors declare a $20,000 cash dividend. The entry to record the declaration of the dividend would include:

When common stock is issued for services or non-cash assets, cost should be

Cash dividends are not a liability of the corporation until they are declared by the board of directors.

Ranier Company is authorized to issue 10,000 shares of 8%, $100 par value preferred stock and 500,000 shares of no-par common stock with a stated value of $1 per share. If Ranier issues 5,000 shares of preferred stock for land with an asking price of $575,000 and a market value of $550,000, which of the following would be the journal entry for Ranier to record?

On November 1, 2018, Nate Corporation's stockholders' equity section is as follows: On November 1, Nate declares and distributes a 15% stock dividend when the market value of the stock is $14 per share. Instructions Indicate the balances in the stockholders' equity accounts after the stock dividend has been distributed.

The number of common shares outstanding can never be greater than the number of shares issued.

Win, Inc. has 10,000 shares of 7%, $100 par value, cumulative preferred stock and 100,000 shares of $1 par value common stock outstanding at December 31, 2018. If the board of directors declares a $70,000 dividend, the

If common stock is issued for an amount greater than par value, the excess should be credited to

The two ways that a corporation can be classified by ownership are

Common Stock Dividends Distributable is classified as a(n)

Restricted retained earnings are available for preferred stock dividends but unavailable for common stock dividends.