Question 1

A stock certificate is released for issued stock.

Accepted Answer

A) True 
 B)False

Question 2

Journalize the following independent transactions:
a)Casey Company sells 300 shares of $20 par-value common stock at $20.
b)Jacob Corporation sells 100 shares of $20 par-value common stock at $30.
c)Moss Inc.sells 40 shares of no-par common stock with a $20 stated value for $30 per share.

Accepted Answer

The answer of Journalize the following independent transactions:
a)Casey Company sells...

Question 3

The Zonga Corporation Stockholders' Equity section includes the following:
$$\begin{array} { | l | r | } 
\hline\text { Preferred Stock } & \$ 22,500 \
\hline \text { Common Stock } & 48,000 \
\hline \text { Paid-in Capital in Excess of Par Value-Preferred } & 3,450 \
\hline \text { Paid-in Capital in Excess of Par Value-Common } & 3,400 \
\hline \text { Retained Earnings } & 7,350 \
\hline
\end{array}$$
Total paid-in capital is:

Accepted Answer

A) $83,730. 
B) $76,380. 
C) $70,000. 
D) $77,350. 
A) $83,730. 
B) $76,380. 
C) $70,000. 
D) $77,350.

Question 4

Common Stock is an asset.

Accepted Answer

A) True 
 B)False

Question 5

No entry was recorded for the exchange of stock for land.This error would cause:

Accepted Answer

A) the period end stockholders' equity to be understated. 
B) the period end stockholders' equity to be overstated. 
C) the period's end assets to be understated. 
D) Both A and C are correct. 
A) the period end stockholders' equity to be understated. 
B) the period end stockholders' equity to be overstated. 
C) the period's end assets to be understated. 
D) Both A and C are correct.

Question 6

Capital stock sold to stockholders is known as:

Accepted Answer

A) issued capital stock. 
B) outstanding capital stock. 
C) authorized capital stock. 
D) treasury capital stock. 
A) issued capital stock. 
B) outstanding capital stock. 
C) authorized capital stock. 
D) treasury capital stock.

Question 7

Diamonds Forever Corporation received subscriptions for 100 shares of its $100 par value common stock for $120 per share.The entry to record the receipt of the subscriptions would include a:

Accepted Answer

A) debit to Common Stock Subscribed for $10,000. 
B) debit to Subscriptions Receivable-Common Stock for $10,000. 
C) credit to Paid-in Capital in Excess of Par Value-Common for $2,000. 
D) credit to Common Stock to be Outstanding $12,000. 
A) debit to Common Stock Subscribed for $10,000. 
B) debit to Subscriptions Receivable-Common Stock for $10,000. 
C) credit to Paid-in Capital in Excess of Par Value-Common for $2,000. 
D) credit to Common Stock to be Outstanding $12,000.

Question 8

Rhubarb Corporation's outstanding stock is 100 shares of $100,11% cumulative nonparticipating preferred stock and 2,000 shares of $12 par value common stock.Rhubarb paid $2,200 cash dividends during the year.Common stockholders received:

Accepted Answer

A) $0. 
B) $500. 
C) $2,500. 
D) $1,100. 
A) $0. 
B) $500. 
C) $2,500. 
D) $1,100.

Question 9

When stock is exchanged for non-cash assets:

Accepted Answer

A) debit the asset for prior book value;credit Common Stock for cash received. 
B) debit assets for market value;credit Common Stock for par value and,if needed,Paid-in Capital in Excess of Par Value-Common. 
C) debit assets for market value;credit Common Stock for market value. 
D) debit assets for par value;credit Common Stock for par value. 
A) debit the asset for prior book value;credit Common Stock for cash received. 
B) debit assets for market value;credit Common Stock for par value and,if needed,Paid-in Capital in Excess of Par Value-Common. 
C) debit assets for market value;credit Common Stock for market value. 
D) debit assets for par value;credit Common Stock for par value.

Question 10

The maximum number of shares of capital stock that a corporation can sell is known as:

Accepted Answer

A) issued capital stock. 
B) outstanding capital stock. 
C) authorized capital stock. 
D) treasury capital stock. 
A) issued capital stock. 
B) outstanding capital stock. 
C) authorized capital stock. 
D) treasury capital stock.

Question 11

Stockholders do not have to pay federal income tax on their stock dividends.

Accepted Answer

A) True 
 B)False

Question 12

The Collins Corporation Stockholders' Equity section includes the following:
$$\begin{array} { | l | r | } 
\hline \text { Preferred Stock } & \$ 13,000 \
\hline \text { Common Stock } & 15,000 \
\hline \text { Paid-in Capital in Excess of Par Value -Preferred } & 3,100 \
\hline \text { Paid-in Capital in Excess of Par Value - Common } & 4,100 \
\hline \text { Retained Earnings } & 8,200 \
\hline
\end{array}$$
What was the total amount preferred stock was sold for?

Accepted Answer

A) $12,000 
B) $14,700 
C) $16,100 
D) $20,200 
A) $12,000 
B) $14,700 
C) $16,100 
D) $20,200

Question 13

Sold common stock at a price above the par value.
Debit ________ Credit ________ & ________

Accepted Answer

Debit 1,Cr

Question 14

Which of the following is NOT a characteristic of common stock?

Accepted Answer

A) The right to share profits by receiving dividends 
B) The right to vote 
C) The right to sell their stock 
D) The right to prior claims of profit over preferred stockholders 
A) The right to share profits by receiving dividends 
B) The right to vote 
C) The right to sell their stock 
D) The right to prior claims of profit over preferred stockholders

Question 15

A corporation is required to pay dividends.

Accepted Answer

A) True 
 B)False

Question 16

A share of stock may be sold at any given time according to the stock's:

Accepted Answer

A) stated value. 
B) book value. 
C) market value. 
D) par value. 
A) stated value. 
B) book value. 
C) market value. 
D) par value.

Question 17

Monarch Company reported Subscriptions Receivable-Common Stock of $1,500 and Common Stock Subscribed of $3,200 on its balance sheet.All the following are true except:

Accepted Answer

A) the amount previously collected on the stock subscriptions is $1,700. 
B) the original stock subscribed totaled $3,200. 
C) Monarch previously issued $1,700 of the subscribed stock. 
D) the remaining amount to be collected from subscribers before the shares will be issued is $1,500. 
A) the amount previously collected on the stock subscriptions is $1,700. 
B) the original stock subscribed totaled $3,200. 
C) Monarch previously issued $1,700 of the subscribed stock. 
D) the remaining amount to be collected from subscribers before the shares will be issued is $1,500.

Question 18

Sold common stock at a price above par accepting a subscription.
Debit ________ Credit ________ & ________

Accepted Answer

Debit 2,Cr

Question 19

Which of the following would normally appear in the Stockholders' Equity section of the balance sheet?

Accepted Answer

A) Cash 
B) Unearned Revenue 
C) Common Stock 
D) Prepaid Expenses 
A) Cash 
B) Unearned Revenue 
C) Common Stock 
D) Prepaid Expenses

Question 20

A company issues no-par value with no stated value stock.Therefore,the company does not have a minimum legal capital amount.

Accepted Answer

A) True 
 B)False

Exam 18: Corporations: Organizations and Stock

A stock certificate is released for issued stock.

Journalize the following independent transactions: a)Casey Company sells 300 shares of $20 par-value common stock at $20. b)Jacob Corporation sells 100 shares of $20 par-value common stock at $30. c)Moss Inc.sells 40 shares of no-par common stock with a $20 stated value for $30 per share.

The Zonga Corporation Stockholders' Equity section includes the following: Preferred Stock \ 22,500 Common Stock 48,000 Paid-in Capital in Excess of Par Value-Preferred 3,450 Paid-in Capital in Excess of Par Value-Common 3,400 Retained Earnings 7,350 Total paid-in capital is:

Common Stock is an asset.

No entry was recorded for the exchange of stock for land.This error would cause:

Capital stock sold to stockholders is known as:

Diamonds Forever Corporation received subscriptions for 100 shares of its $100 par value common stock for $120 per share.The entry to record the receipt of the subscriptions would include a:

Rhubarb Corporation's outstanding stock is 100 shares of $100,11% cumulative nonparticipating preferred stock and 2,000 shares of $12 par value common stock.Rhubarb paid $2,200 cash dividends during the year.Common stockholders received:

When stock is exchanged for non-cash assets:

The maximum number of shares of capital stock that a corporation can sell is known as:

Stockholders do not have to pay federal income tax on their stock dividends.

Sold common stock at a price above the par value. Debit ________ Credit ________ & ________

Which of the following is NOT a characteristic of common stock?

A corporation is required to pay dividends.

A share of stock may be sold at any given time according to the stock's:

Monarch Company reported Subscriptions Receivable-Common Stock of $1,500 and Common Stock Subscribed of $3,200 on its balance sheet.All the following are true except:

Sold common stock at a price above par accepting a subscription. Debit ________ Credit ________ & ________

Which of the following would normally appear in the Stockholders' Equity section of the balance sheet?

A company issues no-par value with no stated value stock.Therefore,the company does not have a minimum legal capital amount.

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: Stock Values,dividends,treasury Stocks,

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Departmental Accounting

Manufacturing Accounting

Filters

Sold common stock at a price above the par value. Debit Credit &

Sold common stock at a price above par accepting a subscription. Debit Credit &