Question 1

Common Stock Dividends Distributable is shown within the Paid-in Capital subdivision of the stockholders' equity section of the balance sheet.

Accepted Answer

A) True 
 B)False

Question 2

Under IFRS, equity is described as each of the following except

Accepted Answer

A)  retained equity. 
B)  shareholders' funds. 
C)  owners' equity. 
D)  capital and reserves. 
A)  retained equity. 
B)  shareholders' funds. 
C)  owners' equity. 
D)  capital and reserves.

Question 3

A statement of comprehensive income is presented in

Accepted Answer

A)  a single-statement format only. 
B)  a two-statement format only. 
C)  an operating format. 
D)  either a one- or two-statement format. 
A)  a single-statement format only. 
B)  a two-statement format only. 
C)  an operating format. 
D)  either a one- or two-statement format.

Question 4

Place each of the items listed below in the appropriate subdivision of the stockholders' equity section of a balance sheet.
Common stock, $10 stated value
Retained earnings
8% Preferred stock, $100 par value
Paid-in capital in excess of par
Paid-in capital in excess of stated value
Treasury stock-Common
Paid-in capital from treasury stock

Accepted Answer

The answer of Place each of the items listed below...

Question 5

Realistic Corporation's December 31, 2018 balance sheet showed the following: 8% preferred stock, $20 par value, cumulative, 20,000 shares   Realistic's total paid-in capital was

Accepted Answer

A)  $43,760,000. 
B)  $44,390,000. 
C)  $43,130,000. 
D)  $24,060,000. 
A)  $43,760,000. 
B)  $44,390,000. 
C)  $43,130,000. 
D)  $24,060,000.

Question 6

Stockton Corporation has 160,000 shares of $5 par value common stock outstanding. It declared a 15% stock dividend on June 1 when the market price per share was $13. The shares were issued on June 30.
Instructions
Prepare the necessary entries for the declaration and distribution of the stock dividend.

Accepted Answer

The answer of Stockton Corporation has 160,000 shares of $5...

Question 7

Ramos Corporation sold 400 shares of treasury stock for $45 per share. The cost for the shares was $35. The entry to record the sale will include a

Accepted Answer

A)  credit to Gain on Sale of Treasury Stock for $14,000. 
B)  credit to Paid-in Capital from Treasury Stock for $4,000. 
C)  debit to Paid-in Capital in Excess of Par for $4,000. 
D)  credit to Treasury Stock for $18,000. 
A)  credit to Gain on Sale of Treasury Stock for $14,000. 
B)  credit to Paid-in Capital from Treasury Stock for $4,000. 
C)  debit to Paid-in Capital in Excess of Par for $4,000. 
D)  credit to Treasury Stock for $18,000.

Question 8

S. Lamar performed legal services for E. Garr. Due to a cash shortage, an agreement was reached whereby E. Garr. would pay S. Lamar a legal fee of approximately $12,000 by issuing 3,000 shares of its common stock (par $1). The stock trades on a daily basis and the market price of the stock on the day the debt was settled is $4.50 per share. Given this information, the journal entry for E. Garr. to record this transaction is:

Accepted Answer

The answer of S. Lamar performed legal services for E....

Question 9

New Corp. issues 2,000 shares of $10 par value common stock at $16 per share. When the transaction is recorded, credits are made to

Accepted Answer

A)  Common Stock $20,000 and Paid-in Capital in Excess of Stated Value $12,000. 
B)  Common Stock $32,000. 
C)  Common Stock $20,000 and Paid-in Capital in Excess of Par $12,000. 
D)  Common Stock $20,000 and Retained Earnings $12,000. 
A)  Common Stock $20,000 and Paid-in Capital in Excess of Stated Value $12,000. 
B)  Common Stock $32,000. 
C)  Common Stock $20,000 and Paid-in Capital in Excess of Par $12,000. 
D)  Common Stock $20,000 and Retained Earnings $12,000.

Question 10

Additional paid-in capital includes all of the following except the amounts paid in

Accepted Answer

A)  over par value. 
B)  over stated value. 
C)  from treasury stock. 
D)  for the par value of common stock. 
A)  over par value. 
B)  over stated value. 
C)  from treasury stock. 
D)  for the par value of common stock.

Question 11

A corporation's own stock that has been reacquired by the corporation but not canceled is called ___________________ and is deducted from total _______________________ on the balance sheet.

Accepted Answer

treasury s

Question 12

The return on common stockholders' equity is computed by dividing _____________ minus _______________ dividends by average common stockholders' equity.

Accepted Answer

net income

Question 13

If stock is issued in exchange for noncash assets, the assets should be valued at the ____________________ of the consideration ___________________ or the assets ____________________, whichever is more clearly evident.

Accepted Answer

fair value

Question 14

Yates Corporation has the following stockholders' equity accounts on January 1, 2018:   The company uses the cost method to account for treasury stock transactions. During 2018, the following treasury stock transactions occurred:
April 1 Purchased 10,000 shares at $19 per share.
August 1 Sold 4,000 shares at $22 per share.
October 1 Sold 2,000 shares at $15 per share.
Instructions
(a) Journalize the treasury stock transactions for 2018.
(b) Prepare the Stockholders' Equity section of the balance sheet for Yates Corporation at December 31, 2018. Assume net income was $110,000 for 2018.

Accepted Answer

The answer of Yates Corporation has the following stockholders' equity...

Question 15

Preferred stockholders have a priority over common stockholders as to

Accepted Answer

A)  dividends only. 
B)  assets in the event of liquidation only. 
C)  voting rights only. 
D)  both dividends and assets in the event of liquidation. 
A)  dividends only. 
B)  assets in the event of liquidation only. 
C)  voting rights only. 
D)  both dividends and assets in the event of liquidation.

Question 16

A company would not acquire treasury stock

Accepted Answer

A)  in order to reissue shares to officers. 
B)  as an asset investment. 
C)  in order to increase trading of the company's stock. 
D)  to have additional shares available to use in acquisitions of other companies. 
A)  in order to reissue shares to officers. 
B)  as an asset investment. 
C)  in order to increase trading of the company's stock. 
D)  to have additional shares available to use in acquisitions of other companies.

Question 17

Restricting retained earnings for the cost of treasury stock purchased is a

Accepted Answer

A)  contractual restriction. 
B)  legal restriction. 
C)  stock restriction. 
D)  voluntary restriction. 
A)  contractual restriction. 
B)  legal restriction. 
C)  stock restriction. 
D)  voluntary restriction.

Question 18

Wise Company had the following transactions.
1. Issued 7,000 shares of common stock with a stated value of $10 for $130,000.
2. Issued 2,000 shares of $100 par preferred stock at $108 for cash.
Instructions
Prepare the journal entries to record the above stock transactions.

Accepted Answer

The answer of Wise Company had the following transactions.
1. Issued...

Question 19

As soon as a corporation is authorized to issue stock, an accounting journal entry should be made recording the total value of the shares authorized.

Accepted Answer

A) True 
 B)False

Question 20

A separate paid-in capital account is used to record each of the following except the issuance of

Accepted Answer

A)  no-par stock. 
B)  par value stock. 
C)  stated value stock. 
D)  treasury stock above cost. 
A)  no-par stock. 
B)  par value stock. 
C)  stated value stock. 
D)  treasury stock above cost.

Common Stock Dividends Distributable is shown within the Paid-in Capital subdivision of the stockholders' equity section of the balance sheet.

Under IFRS, equity is described as each of the following except

A statement of comprehensive income is presented in

Realistic Corporation's December 31, 2018 balance sheet showed the following: 8% preferred stock, $20 par value, cumulative, 20,000 shares Realistic's total paid-in capital was

Ramos Corporation sold 400 shares of treasury stock for $45 per share. The cost for the shares was $35. The entry to record the sale will include a

New Corp. issues 2,000 shares of $10 par value common stock at $16 per share. When the transaction is recorded, credits are made to

Additional paid-in capital includes all of the following except the amounts paid in

A corporation's own stock that has been reacquired by the corporation but not canceled is called _ and is deducted from total _____ on the balance sheet.

The return on common stockholders' equity is computed by dividing _ minus ___ dividends by average common stockholders' equity.

If stock is issued in exchange for noncash assets, the assets should be valued at the __________ of the consideration _ or the assets ____________, whichever is more clearly evident.

Preferred stockholders have a priority over common stockholders as to

A company would not acquire treasury stock

Restricting retained earnings for the cost of treasury stock purchased is a

Wise Company had the following transactions. 1. Issued 7,000 shares of common stock with a stated value of $10 for $130,000. 2. Issued 2,000 shares of $100 par preferred stock at $108 for cash. Instructions Prepare the journal entries to record the above stock transactions.

As soon as a corporation is authorized to issue stock, an accounting journal entry should be made recording the total value of the shares authorized.

A separate paid-in capital account is used to record each of the following except the issuance of

Accounting in Action

The Recording Process

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Liabilities

Statement of Cash Flows

Financial Statement Analysis

Specimen Financial Statements: Apple Inc

Specimen Financial Statements: Pepsico, Inc

Specimen Financial Statements: the Coca-Cola Company

Specimen Financial Statements: Amazoncom, Inc

Specimen Financial Statements: Wal-Mart Stores, Inc

Filters

Exam 11: Corporations: Organization, Stock Transactions

Common Stock Dividends Distributable is shown within the Paid-in Capital subdivision of the stockholders' equity section of the balance sheet.

Under IFRS, equity is described as each of the following except

A statement of comprehensive income is presented in

Realistic Corporation's December 31, 2018 balance sheet showed the following: 8% preferred stock, $20 par value, cumulative, 20,000 shares Realistic's total paid-in capital was

Ramos Corporation sold 400 shares of treasury stock for $45 per share. The cost for the shares was $35. The entry to record the sale will include a

New Corp. issues 2,000 shares of $10 par value common stock at $16 per share. When the transaction is recorded, credits are made to

Additional paid-in capital includes all of the following except the amounts paid in

A corporation's own stock that has been reacquired by the corporation but not canceled is called ___________________ and is deducted from total _______________________ on the balance sheet.

The return on common stockholders' equity is computed by dividing _____________ minus _______________ dividends by average common stockholders' equity.

If stock is issued in exchange for noncash assets, the assets should be valued at the ____________________ of the consideration ___________________ or the assets ____________________, whichever is more clearly evident.

Preferred stockholders have a priority over common stockholders as to

A company would not acquire treasury stock

Restricting retained earnings for the cost of treasury stock purchased is a

Wise Company had the following transactions. 1. Issued 7,000 shares of common stock with a stated value of $10 for $130,000. 2. Issued 2,000 shares of $100 par preferred stock at $108 for cash. Instructions Prepare the journal entries to record the above stock transactions.

As soon as a corporation is authorized to issue stock, an accounting journal entry should be made recording the total value of the shares authorized.

A separate paid-in capital account is used to record each of the following except the issuance of

Accounting in Action

The Recording Process

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Liabilities

Statement of Cash Flows

Financial Statement Analysis

Specimen Financial Statements: Apple Inc

Specimen Financial Statements: Pepsico, Inc

Specimen Financial Statements: the Coca-Cola Company

Specimen Financial Statements: Amazoncom, Inc

Specimen Financial Statements: Wal-Mart Stores, Inc

Filters

A corporation's own stock that has been reacquired by the corporation but not canceled is called _ and is deducted from total _____ on the balance sheet.

The return on common stockholders' equity is computed by dividing _ minus ___ dividends by average common stockholders' equity.

If stock is issued in exchange for noncash assets, the assets should be valued at the __________ of the consideration _ or the assets ____________, whichever is more clearly evident.