Exam 11: Corporations: Organization, Stock Transactions

Sloman Corporation has 100,000 shares of $50 par value preferred stock authorized. During the year, it had the following transactions related to its preferred stock. (a) Issued 20,000 shares at $55 per share. (b) Issued 10,000 shares for equipment having an $800,000 asking price. The stock had a market value of $75 per share Instructions Journalize the transactions.

If a stockholder receives a dividend that reduces retained earnings by the fair value of the stock, the stockholder has received a

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

If a corporation declares a dividend based upon paid-in capital, it is known as a

On January 1, Soft Corporation had 80,000 shares of $10 par value common stock outstanding. On June 17, the company declared a 10% stock dividend to stockholders of record on June 20. Market value of the stock was $15 on June 17. The entry to record the transaction of June 17 would include a

The board of directors must assign a per share value to a stock dividend declared that is

The stockholders' equity section of Barrel Corporation's balance sheet at December 31, 2017, appears below: During 2018, the following stock transactions occurred: Instructions (a) Prepare the journal entries to record the above stock transactions. (b) Prepare the stockholders' equity section of the balance sheet for Barrel Corporation at December 31, 2018. Assume that net income for the year was $150,000 and that no dividends were declared.

Many companies prepare a stockholders' equity statement instead of presenting a detailed stockholders' equity section in the balance sheet.

Sleep Corporation was organized on January 1, 2017. During its first year, the corporation issued 40,000 shares of $5 par value preferred stock and 400,000 shares of $1 par value common stock. At December 31, the company declared the following cash dividends: 2017 \ 6,000 2018 \ 30,000 2019 \ 60,000 Instructions (a) Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 4% and not cumulative. (b) Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 6% and cumulative. (c) Journalize the declaration of the cash dividend at December 31, 2019 using the assumption of part (b).

Book value per share is computed by dividing total

The declaration of a stock dividend will

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 Total paid-in capital   Stock dividend (small)

Prepare the necessary journal entry for each of the following transactions for Zenia Corporation. (a) Issued 2,000 shares of its $5 par value common stock for $20 per share. (b) Issued 5,000 shares of its stock for land advertised for sale at $90,000. Zenia's stock is actively traded at a market price of $16 per share.

Corporations generally issue stock dividends in order to

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 Total stockholders' equity   Stock dividend Sale of treasury stock for more than its cost

A stock dividend results in an increase in paid-in capital in the accounts.

What is ordinarily the first step in the formation of a corporation?

Book value per share is

A detailed stockholders' equity section in the balance sheet will list the names of individuals who are eligible to receive dividends on the date of record.

A corporation has the following account balances: Common stock, $1 par value, $60,000; Paid-in Capital in Excess of Par, $1,300,000. Based on this information, the