Exam 18: Corporations: Organizations and Stock

To calculate dividends on par-value preferred stock:

Prepare the journal entries for Mayhem Manufacturing: June 10 Incurred organization costs totaling $7,500 June 14 Issued 10,000 shares of $11 par value common stock for $120,000 June 22 Issued 3,000 shares of 7%,$30 par value preferred stock for $120,000

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

Common stock was sold in excess of par;the excess was credited to Sales.This error would cause:

The entry to record selling 400 shares of no-par common stock with a stated value of $60 for $70 would be to:

List and discuss the (a)advantages and (b)disadvantages of the corporation form of business.

Preemptive rights allow a stockholder to:

Each share of capital stock of a corporation gives its owner the right to:

Antiques.com Corporation's outstanding stock is 75 shares of $60,8% cumulative nonparticipating preferred stock and 2,000 shares of $10 par value common stock.Antiques paid $2,760 cash dividends during the year.Common stockholders received:

The ownership of the corporation consists of:

The document granted by the state authorizing the creation of a corporation is known as:

Which of the following is not a characteristic of a corporation?

Characteristics of a corporation include:

The Logan Company issued 140 shares of its $12 par value stock for $14 per share.The entry to record the receipt of cash and issuance of the stock would include a:

Birch Company issued 200 shares of common stock with a par value of $10 per share in exchange for equipment with a fair market value of $4,000.Record the journal entry for the stock issuance.

An advantage of a corporation would be:

The type of preferred stock that entitles its holders to any undeclared dividends that have accumulated before common stockholders receive their dividends is known as:

The Bean Counter Corporation received subscriptions for 100 shares of its $12 par value common stock at $15 per share.The entry to record receipt of the subscriptions would include a:

Jane Kathryn has 15,000 shares outstanding of $15 par value,5% preferred stock and 100,000 shares outstanding $10 par value common stock.In the first 3 years of operations,the company paid dividends in Year 1,$0;Year 2,$10,000;Year 3,$20,000.Calculate the dividend paid to preferred and common stockholders under the following independent situations:

R.Red formed a corporation with an authorization of 20,000 shares of $50 par,6% non-cumulative preferred stock and 100,000 shares of $10 par common stock.The following selected transactions were completed during the first year of operations.Journalize the transactions omitting explanations.