Exam 13: Corporations: Organization and Capital Stock Transactions

Nina Corporation's December 31 2017 balance sheet showed the following: 8% preferred stock $20 par value cumulative 40000 shares authorized; 20,000 shares issued \ 400,000 Common stock, \ 10 parvalue, 4,000,000 shares authorized; 1,950,000 shares issued, 3,860,000 shares outstanding 39,000,000 Paid-in capital in excess of par-preferred stock 120,000 Paid-in capital in excess of par-common stock 54,000,000 Retained earnings 15,300,000 Treasury stock (40,000 shares) 1,260,000 Nina's total paid-in capital was

Anastasia Corporation began business by issuing 600000 shares of $5 par value common stock for $24 per share. During its first year the corporation sustained a net loss of $60000. The year-end balance sheet would show

The term residual claim refers to a stockholders' right to

Orley Company had the following transactions. 1. Issued 5000 shares of common stock with a stated value of $10 for $130000. 2. Issued 2000 shares of $100 par preferred stock at $108 for cash. Instructions Prepare the journal entries to record the above stock transactions.

Each of the following is correct regarding treasury stock except that it has been

Dividends in arrears on cumulative preferred stock

When stock is issued for legal costs incurred in forming a corporation the transaction is recorded by debiting Organization Expense for the

A major difference between IFRS and GAAP relates to the

Place each of the items listed below in the appropriate subdivision of the stockholders' equity section of a balance sheet.

Treasury stock is

Under the cost method Treasury Stock is debited at the price paid to reacquire the shares and the same amount is credited to Treasury Stock when the shares are sold.

Victory Corporation sold 400 shares of treasury stock for $45 per share. The cost for the shares was $35. The entry to record the sale will include a

A corporation whose stock is regularly traded on a national securities exchange is a

Which one of the following would not be considered an advantage of the corporate form of organization?

On July 6 Crevasse Corporation issued 2000 shares of its $1.50 par common stock. The market price of the stock on that date was $18 per share. Journalize the issuance of the stock.

Identify (by letter) each of the following characteristics as being an advantage a disadvantage or not applicable to the corporate form of business organization.

Retained earnings are a part of stockholders' equity.

Andy Eggers has invested $150000 in a privately held family corporation. The corporation does not do well and must declare bankruptcy. What amount does Eggers stand to lose?

Legal capital per share cannot be equal to the

Each of the following is reported for common stock except the