Exam 13: Corporations: Organization and Capital Stock Transactions

East Asian Imports Inc. issued 15000 shares of stock at a stated value of $8 per share. The total issue of stock sold for $15 per share. The journal entry to record this transaction would include a

Zeus Corporation issued 5000 shares of stock. Instructions Prepare the entry for the issuance under the following assumptions. (a) The stock had a par value of $5 per share and was issued for a total of $65000. (b) The stock had a stated value of $5 per share and was issued for a total of $65000. (c) The stock had a par value of $5 per share and was issued to attorneys for services during in-corporation valued at $65000. (d) The stock had a par value of $5 per share and was issued for land worth $65000.

Bellezone Corporation's December 31 2017 balance sheet showed the following: 8% preferred stock $20 par value cumulative 20000 shares authorized; 15,000 shares issued \ 300,000 Common stock, \ 10 parvalue, 2,000,000 shares authorized; 1,950,000 shares issued, 1,920,000 shares outstanding 19,500,000 Paid-in capital in excess of par-preferred stock 60,000 Paid-in capital in excess of par-common stock 27,000,000 Retained earnings 7,500,000 Treasury stock (30,000 shares) 630,000 Bellezone's total stockholders' equity was

The stockholders' equity section of Makoto Corporation's balance sheet at December 31 2016 appears below: Stockholders' equity Paid-in capital Common stock, $\$ 10$ par value, 400,000 shares authorized; 250,000 issued and outstanding \ 2,500,000 Paid-in capital in excess of par 1,200,000 Total paid-in capital 3,700,000 Retained earnings \ 600,000 Total stockholders' equity \ 4,300,000 During 2017 the following stock transactions occurred: Jan. 18 $\quad$ Issued 50,000 shares of common stock at $\$ 32$ per share. Aug. 20 $\quad$ Purchased 25,000 shares of Makoto Corporation's common stock at $\$ 26$ per share to be held in the treasury. Nov. 5 $\quad$ Reissued 9,000 shares of treasury stock for $\$ 28$ per share. Instructions Prepare the stockholders' equity section of the balance sheet for Makoto Corporation at December 31 2017. Assume that net income for the year was $100000 and that no dividends were declared.

Rowlands Corporation has 100000 shares of $40 par value preferred stock authorized. During the year it had the following transactions related to its preferred stock. (a) Issued 20000 shares at $55 per share. (b) Issued 10000 shares for equipment having a $700000 asking price. The stock had a market value of $75 per share Instructions Journalize the transactions.

The paid-in capital section of the balance sheet consists of two classifications: ______________________ and ______________________.

Jackson Company is a publicly held corporation whose $1 par value stock is actively traded at $64 per share. The company issued 3000 shares of stock to acquire land recently advertised at $200000. When recording this transaction Barton Company will

Which of the following is an incorrect statement about a corporation?

A corporation is not an entity which is separate and distinct from its owners.

Stockholders of a corporation directly elect

Which of the following factors does not affect the initial market price of a stock?

Treasury Stock is a(n)

On January 2 2014 Valente Corporation issued 60000 shares of 6% cumulative preferred stock at $100 par value. On December 31 2017 Valente Corporation declared and paid its first dividend. What dividends are the preferred stockholders entitled to receive in the current year before any distribution is made to common stockholders?

Hayes Construction Company issued 1200 shares of no-par common stock for $17600. Which of the following journal entries would be made if the stock has no stated value? a. Cash 17,600 Common Stock 17,600 b. Cash 17,600 Common Stock 1,200 Paid-in Capital in Excess of Par 16,400 c. Cash 17,600 Common Stock 1,200 Paid-in Capital in Excess of Stated Value 16,400 d. Common Stock 17,600 Cash 17,600

The acquisition of treasury stock by a corporation

Which one of the following is a privately held corporation?

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

Dividends are declared out of retained earnings.

Vangaurd Corporation's December 31 2017 balance sheet showed the following: 8% preferred stock $20 par value cumulative 20000 shares authorized; 15,000 shares issued \ 300,000 Common stock, \ 10 parvalue, 2,000,000 shares authorized; 1,950,000 shares issued, 1,920,000 shares outstanding 19,500,000 Paid-in capital in excess of par-preferred stock 60,000 Paid-in capital in excess of par-common stock 27,000,000 Retained earnings 7,500,000 Treasury stock (30,000 shares) 630,000 Vangaurd declared and paid a $96000 cash dividend on December 15 2017. If the company's dividends in arrears prior to that date were $20000 Vangaurd's common stockholders received

The stockholders' equity section of a corporation's balance sheet is generally divided in two major sections: (1) _____________ and (2) _______________.