Exam 11: Corporations: Organization, Stock Transactions

Each of the following decreases total stockholders' equity except a

Moore, Inc. had 250,000 shares of common stock outstanding before a stock split occurred, and 1,000,000 shares outstanding after the stock split. The stock split was

A corporation must be incorporated in each state in which it does business.

Salon Company originally issued 4,000 shares of $10 par value common stock for $120,000 ($30 per share). Salon subsequently purchases 400 shares of treasury stock for $27 per share and resells the 400 shares of treasury stock for $29 per share. In the entry to record the sale of the treasury stock, there will be a

The following items were shown on the balance sheet of Easton Corporation on December 31, 2018: Instructions Complete the following statements and show your computations. (a) The number of shares of common stock issued was _______________. (b) The number of shares of common stock outstanding was ____________. (c) The common stock was issued for a total of $____________. (d) The cost per share of the treasury stock was $_______________. (e) The average issue price of the common stock was $______________. (f) Assuming that 25% of the treasury stock is sold at $20 per share, the balance in the Treasury Stock account would be $_______________.

A 3-for-1 common stock split will increase total stockholders' equity but reduce the par or stated value per share of common stock.

Which one of the following is a privately held corporation?

The major advantages of the corporate form of organization include (1) limited _________________ of owners, (2) continuous ____________________ and (3) ease of transferring ___________________.

The stockholders' equity section of Morton Corporation at December 31 is as follows. Instructions From a review of the stockholders' equity section, answer the following questions. (a) How many shares of common stock are outstanding? (b) Assuming there is a stated value, what is the stated value of the common stock? (c) What is the par value of the preferred stock? (d) If the annual dividend on preferred stock is $15,000, what is the dividend rate on preferred stock? (e) If dividends of $30,000 were in arrears on preferred stock, what would be the balance in Retained Earnings?

A successful corporation can have a continuous and perpetual life.

A credit balance in retained earnings represents

The following data is available for Blaine Corporation at December 31, 2018: Based on the data, how many shares of common stock have been issued?

If an investment firm underwrites a stock issue, the

If a stockholder cannot attend a stockholder's meeting, he may delegate his voting rights by means of

Kong Inc. reported net income of $298,000 during 2018 and paid dividends of $26,000 on common stock. It also has 10,000 shares of 6%, $100 par value cumulative preferred stock outstanding. Common stockholders' equity was $1,200,000 on January 1, 2018, and $1,600,000 on December 31, 2018. The company's return on common stockholders' equity for 2018 is:

At December 31, the stockholders' equity of Smith Company was as follows: The book value per share of common stock is

Other comprehensive income items include each of the following except

The per share amount normally assigned by the board of directors to a small stock dividend is

A numerator of the payout ratio is

Match each item/event pair below with the indicated change in the item. An individual classification may be used more than once, or not at all. For each dividend, assume that both declaration and payment or distribution has occurred. Classifications -Item                 Event Earnings per common share   Restriction of Retained Earnings