Question 1

Which of the following decrease when treasury stock is purchased?

Accepted Answer

A) Issued shares 
B) Outstanding shares 
C) Authorized shares 
D) None of these answers is correct. 
A) Issued shares 
B) Outstanding shares 
C) Authorized shares 
D) None of these answers is correct. B

Question 2

A stock dividend may be distributed even if the company is short of cash.

Accepted Answer

A) True 
 B)False  True

Question 3

An exchange of one share of an old issue of stock for a multiple number of shares of a new issue of stock with reduced par value is known as a:

Accepted Answer

A) property dividend. 
B) stock dividend. 
C) stock split. 
D) liquidating dividend. 
A) property dividend. 
B) stock dividend. 
C) stock split. 
D) liquidating dividend. C

Question 4

Declaration of a cash dividend causes:

Accepted Answer

A) a decrease in stockholders' equity. 
B) an increase in cash. 
C) a decrease in liabilities. 
D) None of these answers is correct. 
A) a decrease in stockholders' equity. 
B) an increase in cash. 
C) a decrease in liabilities. 
D) None of these answers is correct.

Question 5

Declared a cash dividend.
Debit ________ Credit ________

Accepted Answer

The answer of Declared a cash dividend.
Debit ________ Credit ________...

Question 6

Baxter Corporation has 1,000 shares of $5 par value common stock issued and outstanding.
Journalize the following Baxter transactions for 20XX:

Accepted Answer

The answer of Baxter Corporation has 1,000 shares of $5...

Question 7

The Tiger Football Corporation has 9,000 shares of $1.50 par value common stock issued and outstanding.The board of directors declared a 3-for-1 stock split May 10,distributable on June 15,to stockholders of record on June 1.The Retained Earnings account balance is $50,000 on May 10.Prepare the equity section of the balance sheet on May 10 and June 15,before and after the stock split.

Accepted Answer

The answer of The Tiger Football Corporation has 9,000 shares...

Question 8

A stock split will decrease total stockholders' equity and the number of shares of stock issued.

Accepted Answer

A) True 
 B)False

Question 9

The Black Bear Basketball Corporation has 7,000 shares of common stock issued and outstanding.The board of directors declared a $1.00 per share cash dividend on January 9,payable on March 9,to stockholders of record on February 9.Prepare the appropriate journal entries.

Accepted Answer

The answer of The Black Bear Basketball Corporation has 7,000...

Question 10

Curtis Corporation's balance sheet included the following:
 $\begin{array}{l}
\text { Common Stock, } \$ 5 \text { par value, } 5,000 \text { shares issued }\
\begin{array}{lr}
\text { and outstanding } & \$ 25,000 \
\text { Retained Earnings } & 20,000 \
\text { Total Stockholders' Equity } & \$ 45,000
\end{array}
\end{array}$ 
Prepare journal entries for the following transactions:
 May $3 \quad$ Issued 500 shares at $\$ 6$ per share.
9 Reacquired 100 shares at $\$ 4$ per share.
Reissued 50 of the Treasury shares at $\$ 7$ per share.
17 Reissued 10 of the Treasury shares at $\$ 3$ per share.

Accepted Answer

The answer of Curtis Corporation's balance sheet included the following:
...

Question 11

Sold treasury stock at a price equal to cost.
Debit ________ & Credit ________

Accepted Answer

The answer of Sold treasury stock at a price equal...

Question 12

A dividend is declared by:

Accepted Answer

A) the board of directors. 
B) president of the corporation. 
C) CFO of the corporation. 
D) stockholders. 
A) the board of directors. 
B) president of the corporation. 
C) CFO of the corporation. 
D) stockholders.

Question 13

The board of Bogswell,Inc.declared a $2 per share cash dividend on common stock.The corporation has 4,000 shares of common stock outstanding.The entry required to declare the dividend is:

Accepted Answer

A) debit Cash;credit Common Dividends Payable. 
B) debit Common Dividends Payable;credit Cash. 
C) debit Retained Earnings;credit Dividends Payable. 
D) debit Cash Dividends;credit Common Dividends Payable. 
A) debit Cash;credit Common Dividends Payable. 
B) debit Common Dividends Payable;credit Cash. 
C) debit Retained Earnings;credit Dividends Payable. 
D) debit Cash Dividends;credit Common Dividends Payable.

Question 14

Book value per share is the same as par value per share.

Accepted Answer

A) True 
 B)False

Question 15

If treasury stock is sold for less than cost,the entry to record the transaction would include a:

Accepted Answer

A) debit to Treasury Stock. 
B) credit to Treasury Stock. 
C) debit to Common Stock. 
D) None of these answers is correct. 
A) debit to Treasury Stock. 
B) credit to Treasury Stock. 
C) debit to Common Stock. 
D) None of these answers is correct.

Question 16

The statement of retained earnings does not include the account Preferred Stock.

Accepted Answer

A) True 
 B)False

Question 17

Paid a cash dividend.
Debit ________ Credit ________

Accepted Answer

The answer of Paid a cash dividend.
Debit ________ Credit ________...

Question 18

When calculating book value per share,if a redemption value is not stated,market value is used instead.

Accepted Answer

A) True 
 B)False

Question 19

The journal entry to record the issuance of a stock dividend is to:

Accepted Answer

A) debit Common Stock Dividend Distributable (number of shares × par value common stock);credit Common Stock (same). 
B) debit Common Stock Dividends Distributable (number of shares × market value common stock);credit Common Stock (same). 
C) debit Retained Earnings (market value × number of shares);credit Common Stock Dividends Distributable (number of shares × par value);credit Paid-in Capital in Excess of Par Value-Stock Dividend. 
D) debit Common Stock Dividend Distributable (number of shares × par value);credit Cash. 
A) debit Common Stock Dividend Distributable (number of shares × par value common stock);credit Common Stock (same). 
B) debit Common Stock Dividends Distributable (number of shares × market value common stock);credit Common Stock (same). 
C) debit Retained Earnings (market value × number of shares);credit Common Stock Dividends Distributable (number of shares × par value);credit Paid-in Capital in Excess of Par Value-Stock Dividend. 
D) debit Common Stock Dividend Distributable (number of shares × par value);credit Cash.

Question 20

A corporation may issue a stock dividend for which of the following reasons?

Accepted Answer

A) May want to increase permanent capital in the business 
B) May want to decrease market value 
C) May be short of cash and unable to pay a cash dividend 
D) All of the above are correct. 
A) May want to increase permanent capital in the business 
B) May want to decrease market value 
C) May be short of cash and unable to pay a cash dividend 
D) All of the above are correct.

Exam 19: Corporations: Stock Values,dividends,treasury Stocks,

Which of the following decrease when treasury stock is purchased?

A stock dividend may be distributed even if the company is short of cash.

An exchange of one share of an old issue of stock for a multiple number of shares of a new issue of stock with reduced par value is known as a:

Declaration of a cash dividend causes:

Declared a cash dividend. Debit ________ Credit ________

Baxter Corporation has 1,000 shares of $5 par value common stock issued and outstanding. Journalize the following Baxter transactions for 20XX:

A stock split will decrease total stockholders' equity and the number of shares of stock issued.

The Black Bear Basketball Corporation has 7,000 shares of common stock issued and outstanding.The board of directors declared a $1.00 per share cash dividend on January 9,payable on March 9,to stockholders of record on February 9.Prepare the appropriate journal entries.

Sold treasury stock at a price equal to cost. Debit ________ & Credit ________

A dividend is declared by:

The board of Bogswell,Inc.declared a $2 per share cash dividend on common stock.The corporation has 4,000 shares of common stock outstanding.The entry required to declare the dividend is:

Book value per share is the same as par value per share.

If treasury stock is sold for less than cost,the entry to record the transaction would include a:

The statement of retained earnings does not include the account Preferred Stock.

Paid a cash dividend. Debit ________ Credit ________

When calculating book value per share,if a redemption value is not stated,market value is used instead.

The journal entry to record the issuance of a stock dividend is to:

A corporation may issue a stock dividend for which of the following reasons?

Accounting Concepts and Procedures

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle

The Accounting Cycle Continued

The Accounting Cycle Completed

Banking Procedure and Control of Cash

Calculating Pay and Payroll Taxes: the Beginning of the Payroll Process

Paying,recording,and Reporting Payroll and Payroll Taxes:

Sales and Cash Receipts

Purchases and Cash Payments

Preparing a Worksheet for a Merchandise Company

Completion of the Accounting Cycle for a Merchandise Company

Accounting for Bad Debts

Notes Receivable and Notes Payable

Accounting for Merchandise Inventory

Accounting for Property,plant,equipment,and Intangible Assets

Partnership

Corporations: Organizations and Stock

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Departmental Accounting

Manufacturing Accounting

Filters

Declared a cash dividend. Debit Credit

Sold treasury stock at a price equal to cost. Debit & Credit

Paid a cash dividend. Debit Credit