Exam 11: Corporations: Organization, Stock Transactions

On November 1, 2018, Tech Corporation's stockholders' equity section is as follows: On November 1, Tech declares and distributes a 15% stock dividend when the market value of the stock is $16 per share. Instructions Indicate the balances in the stockholders' equity accounts after the stock dividend has been distributed.

The officer who is generally responsible for maintaining the cash position of the corporation is the

On November 27, the board of directors of Armstrong Company declared a $.50 per share dividend. The dividend is payable to shareholders of record on December 7 on December 24. Armstrong has 25,500 shares of $1 par common stock outstanding at November 27. Journalize the entries needed on the declaration and payment dates.

Previously issued financial statements with errors are required to be restated under

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

The following selected transactions pertain to Sinclair Corporation: Jan. 3 Issued 100,000 shares, $5 par value, common stock for $25 per share. Feb. 10 Issued 6,000 shares, $5 par value, common stock in exchange for special purpose equipment. Sinclair Corporation's common stock has been actively traded on the stock exchange at $30 per share. Instructions Journalize the transactions.

The following information is available for Pencil Corporation: Common Stock ($5 par) $\$ 1,600,000$ Retained Earnings $\quad 1,300,000$ A 20% stock dividend is declared and paid when the market value was $16 per share. Instructions Compute each of the following after the stock dividend. (a) Total stockholders' equity. (b) Number of shares outstanding.

eris, Inc. has 1,000 shares of 6%, $10 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31, 2018. What is the annual dividend on the preferred stock?

BE 261 Domaine Corporation is authorized to issue 1,000,000 shares of $1 par value common stock. During 2018, the company has the following stock transactions. Jan. 15 Issued 500,000 shares of stock at $7 per share. Sept. 5 Purchased 30,000 shares of common stock for the treasury at $9 per share. Instructions Journalize the transactions for Domaine Corporation.

Bacon Corporation began business by issuing 180,000 shares of $5 par value common stock for $25 per share. During its first year, the corporation sustained a net loss of $30,000. The year-end balance sheet would show

Accounting for treasury stock is done by the

The amount of a cash dividend liability is recorded on the date of record because it is on that date that the persons or entities who will receive the dividend are identified.

A statement of stockholders' equity discloses all of the following except:

On January 2, 2015, Porter Corporation issued 30,000 shares of 5% cumulative preferred stock at $100 par value. On December 31, 2018, Porter Corporation declared and paid its first dividend. What dividends are the preferred stockholders entitled to receive in the current year before any distribution is made to common stockholders?

IFRS treats the purchase of treasury stock as any of the following except

Treasury stock is generally accounted for by the

A corporation commits to a legal obligation when it declares

Jarrett Company issued 900 shares of no-par common stock for $13,200. Which of the following journal entries would be made if the stock has no stated value?

A debit balance in the Retained Earnings account is identified as a deficit.

Book value per share of common stock is the same amount as the market value per share.