Question 1

The stockholders of a corporation have no mutual agency.

Accepted Answer

A) True 
 B)False

Question 2

Double taxation is said to be an advantage of a corporation.

Accepted Answer

A) True 
 B)False

Question 3

Voting rights are a characteristic of which type stock?

Accepted Answer

A) Common but not preferred 
B) Preferred but not common 
C) Both common and preferred 
D) Neither common nor preferred 
A) Common but not preferred 
B) Preferred but not common 
C) Both common and preferred 
D) Neither common nor preferred

Question 4

Sold common stock at a price equal to the par value.
Debit ________ Credit ________

Accepted Answer

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

Question 5

The TM Stockholders' Equity section includes the following:
$$\begin{array} { | l | r | } 
\hline\text { Preferred Stock } & \$ 3,800 \
\hline \text { Common Stock } & 5,950 \
\hline \text { Paid-in Capital in Excess of Par Value - Preferred } & 400 \
\hline \text { Paid-in Capital in Excess of Par Value - Common } & 1,750 \
\hline \text { Retained Earnings } & 6,000 \
\hline
\end{array}$$
What was the total amount common stock was sold for?

Accepted Answer

A) $7,700 
B) $13,700 
C) $11,500 
D) $9,950 
A) $7,700 
B) $13,700 
C) $11,500 
D) $9,950

Question 6

The journal entry for the receipt of a cash payment on common stock subscriptions would include:

Accepted Answer

A) debiting Subscriptions Receivable-Common Stock;crediting Common Stock. 
B) debiting Common Stock;crediting Subscriptions Receivable-Common Stock. 
C) debiting Cash;crediting Subscriptions Receivable-Common Stock. 
D) debiting Cash;crediting Common Stock Subscribed. 
A) debiting Subscriptions Receivable-Common Stock;crediting Common Stock. 
B) debiting Common Stock;crediting Subscriptions Receivable-Common Stock. 
C) debiting Cash;crediting Subscriptions Receivable-Common Stock. 
D) debiting Cash;crediting Common Stock Subscribed.

Question 7

ABC sells 400 shares of its $20 par common stock for $25.The entry would entail a credit(s)of:

Accepted Answer

A) Cash of $10,000. 
B) Paid-in Capital in Excess of Par Value-Common for $8,000;Common Stock for $2,000. 
C) Paid-in Capital in Excess of Par Value-Common for $2,000;Common Stock for $8,000. 
D) Common Stock for $10,000. 
A) Cash of $10,000. 
B) Paid-in Capital in Excess of Par Value-Common for $8,000;Common Stock for $2,000. 
C) Paid-in Capital in Excess of Par Value-Common for $2,000;Common Stock for $8,000. 
D) Common Stock for $10,000.

Question 8

The financial loss that each stockholder in a corporation can incur is unlimited.

Accepted Answer

A) True 
 B)False

Question 9

Journalize the transactions for the stock subscription plan for Rico Company.On February 1,Rico received subscriptions for 90 shares of $10 par value common stock at $15 per share.The buyer will pay two equal installments on March 1 and June 1.Assume all payments are made as scheduled and the company issues the stock after the June 1 collection.

Accepted Answer

The answer of Journalize the transactions for the stock subscription...

Question 10

If preferred dividends are limited to the stated rate of dividend,the preferred stock is:

Accepted Answer

A) non-cumulative. 
B) cumulative. 
C) participating. 
D) nonparticipating. 
A) non-cumulative. 
B) cumulative. 
C) participating. 
D) nonparticipating.

Question 11

When a company sells stock at an amount less then par value,the amount is referred to as:

Accepted Answer

A) a discount. 
B) a premium. 
C) a bonus. 
D) Companies cannot sell stock for more than par value. 
A) a discount. 
B) a premium. 
C) a bonus. 
D) Companies cannot sell stock for more than par value.

Question 12

Articles of incorporation contain all of the following except:

Accepted Answer

A) the purpose of the business. 
B) the types of stock to be offered. 
C) the name of the president. 
D) organizational structure. 
A) the purpose of the business. 
B) the types of stock to be offered. 
C) the name of the president. 
D) organizational structure.

Question 13

Sunrise Online issued 500 shares of its $10 common stock in exchange for equipment with a fair market value of $7,500.The entry to record the transaction would include a:

Accepted Answer

A) debit to Equipment for $5,000. 
B) credit to Common Stock for $5,000. 
C) debit to Paid-in Capital in Excess of Par Value-Common for $2,500. 
D) credit to Common Stock Subscribed for $5,000. 
A) debit to Equipment for $5,000. 
B) credit to Common Stock for $5,000. 
C) debit to Paid-in Capital in Excess of Par Value-Common for $2,500. 
D) credit to Common Stock Subscribed for $5,000.

Question 14

Journalize the following stock transactions for Rick Corporation.
 July 22 Issued 10,000 shares of $\$ 6$ par common stock for $\$ 45,000$ cash.
28 Issued 6,000 shares of $\$ 4$ par common stock for $\$ 35,000$ cash.
31 Issued 4,000 shares of $\$ 10$ par, $7 \%$ preferred stock for $\$ 50,000$ cash.

Accepted Answer

The answer of Journalize the following stock transactions for Rick...

Question 15

Identify the account types used in recording transactions related to a stock subscription plan: Subscriptions Receivable-Common Stock;Common Stock Subscribed,Paid-In Capital in Excess of Par Value-Common,Common Stock,Cash.Also list the financial statement where the accounts are found.

Accepted Answer

The answer of Identify the account types used in recording...

Question 16

Custer.com Company's outstanding stock is 100 shares of $100,5% cumulative nonparticipating preferred stock and 1,000 shares of $10 par value common stock.Custer paid $2,300 cash dividends including one-year dividends in arrears to preferred stockholders.Common stockholders received:

Accepted Answer

A) $0. 
B) $800. 
C) $1,300. 
D) $500. 
A) $0. 
B) $800. 
C) $1,300. 
D) $500.

Question 17

What is the entry to record subscriptions received for 1,700 shares of $100 par value common stock at $130 per share?

Accepted Answer

A) Debit Common Stock Subscribed $221,000;credit Cash $221,000 
B) Debit Subscriptions Receivable-Common Stock $221,000;credit Common Stock Subscribed $170,000;credit Paid-in Capital in Excess of Par Value-Common $51,000. 
C) Debit Subscriptions Receivable-Common Stock $221,000;credit Common Stock Subscribed $221,000 
D) None of these answers is correct. 
A) Debit Common Stock Subscribed $221,000;credit Cash $221,000 
B) Debit Subscriptions Receivable-Common Stock $221,000;credit Common Stock Subscribed $170,000;credit Paid-in Capital in Excess of Par Value-Common $51,000. 
C) Debit Subscriptions Receivable-Common Stock $221,000;credit Common Stock Subscribed $221,000 
D) None of these answers is correct.

Question 18

Purchased machinery for cash.
Debit ________ Credit ________

Accepted Answer

The answer of Purchased machinery for cash.
Debit ________ Credit ________...

Question 19

The Articles of Incorporation are submitted to the President of the United States.

Accepted Answer

A) True 
 B)False

Question 20

The death of an individual shareholder of the corporation will terminate the corporation.

Accepted Answer

A) True 
 B)False

Exam 18: Corporations: Organizations and Stock

The stockholders of a corporation have no mutual agency.

Double taxation is said to be an advantage of a corporation.

Voting rights are a characteristic of which type stock?

Sold common stock at a price equal to the par value. Debit ________ Credit ________

The TM Stockholders' Equity section includes the following: Preferred Stock \ 3,800 Common Stock 5,950 Paid-in Capital in Excess of Par Value - Preferred 400 Paid-in Capital in Excess of Par Value - Common 1,750 Retained Earnings 6,000 What was the total amount common stock was sold for?

The journal entry for the receipt of a cash payment on common stock subscriptions would include:

ABC sells 400 shares of its $20 par common stock for $25.The entry would entail a credit(s)of:

The financial loss that each stockholder in a corporation can incur is unlimited.

If preferred dividends are limited to the stated rate of dividend,the preferred stock is:

When a company sells stock at an amount less then par value,the amount is referred to as:

Articles of incorporation contain all of the following except:

Sunrise Online issued 500 shares of its $10 common stock in exchange for equipment with a fair market value of $7,500.The entry to record the transaction would include a:

Identify the account types used in recording transactions related to a stock subscription plan: Subscriptions Receivable-Common Stock;Common Stock Subscribed,Paid-In Capital in Excess of Par Value-Common,Common Stock,Cash.Also list the financial statement where the accounts are found.

Custer.com Company's outstanding stock is 100 shares of $100,5% cumulative nonparticipating preferred stock and 1,000 shares of $10 par value common stock.Custer paid $2,300 cash dividends including one-year dividends in arrears to preferred stockholders.Common stockholders received:

What is the entry to record subscriptions received for 1,700 shares of $100 par value common stock at $130 per share?

Purchased machinery for cash. Debit ________ Credit ________

The Articles of Incorporation are submitted to the President of the United States.

The death of an individual shareholder of the corporation will terminate the corporation.

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 equal to the par value. Debit Credit

Purchased machinery for cash. Debit Credit