Exam 13: Corporations: Organization and Capital Stock Transactions

The major advantages of the corporate form of organization include (1) limited _________________ of owners (2) continuous ____________________ and (3) ease of transferring ___________________.

If no-par stock is issued without a stated value then

Which of the following statements concerning taxation is accurate?

Treasury stock is a contra stockholders' equity account.

Treasury stock is generally accounted for by the

Mountain View Inc. has 50000 shares of 8% $100 par value noncumulative preferred stock and 100000 shares of $1 par value common stock outstanding at December 31 2017. There were no dividends declared in 2016. The board of directors declares and pays a $500000 dividend in 2017. What is the amount of dividends received by the common stockholders in 2017?

Dividends are declared out of

Bodkin Beverage Company is authorized to issue 20000 shares of 8% $100 par value preferred stock and 500000 shares of no-par common stock with a stated value of $1 per share. If Bodkin issues 12000 shares of common stock to pay its recent attorney's bill of $50000 for legal services on a land access dispute which of the following would be the journal entry for Bodkin to record? a. Legal Expense 12,000 Common Stock 12,000 b. Legal Expense 50,000 Common Stock 50,000 c. Legal Expense 50,000 Common Stock 12,000 Paid-in Capital in Excess of Stated Value -Common 38,000 d. Legal Expense 50,000 Common Stock 12,000 Paid-in Capital in Excess of Par - Preferred 38,000

A corporation purchases 60000 shares of its own $30 par common stock for $45 per share recording it at cost. What will be the effect on total stockholders' equity?

The stockholders' equity section of Fauberg Marigny Corporation at December 31 is as follows. Instructions From a review of the stockholders' equity section answer the following questions. (a) How many shares of common stock are outstanding? (b) Assuming there is a stated value what is the stated value of the common stock? (c) What is the par value of the preferred stock? (d) If the annual dividend on preferred stock is $18000 what is the dividend rate on preferred stock? (e) If dividends of $36000 were in arrears on preferred stock what would be the balance in Retained Earnings?

The concept of an "artificial being" refers to which form of business organization?

Information that is not generally reported for each class of stock on the balance sheet is

Treasury stock should be reported in the financial statements of a corporation as a(n)

Paid-In Capital in Excess of Stated Value

An inexperienced accountant for Dudley Corporation made the following entries. July 1 Cash 180,000 Common Stock 180,000 (Issued 25,000 shares of common stock, par value \ 6 per share) Sept. 1 Common Stock 24,000 Retained Earnings 16,000 Cash 40,000 (Purchased 4,000 shares issued on July 1 for the treasury at \ 10 per share) Instructions On the basis of the explanation for each entry prepare the entry that should have been made for the transactions.

Under IFRS the term reserves relates to each of the following except

Preferred stock has contractual preference over common stock in certain areas.

If Baylor Company issues 8000 shares of $5 par value common stock for $280000

Roca Company originally issued 30000 shares of $5 par common stock for $240000 on January 3 2017. Roca purchased 1500 shares of treasury stock for $15000 on November 2 2017. On December 6 2017 600 shares of the treasury stock are sold for $7200. Instructions Prepare journal entries to record these stock transactions.

A corporate board of directors does not generally