Question 1

The date of payment is the date established by the board of directors that determines which stockholders will receive the dividend.

Accepted Answer

A) True 
 B)False

Question 2

Ariel Investigations has total paid-in capital of $74,000 and retained earnings of $40,000. It has 300 shares of $100 par value common stock outstanding, and no preferred shares outstanding. The book value of each share of common stock is: (Round your answer to the nearest cent.)

Accepted Answer

A)  $133.33. 
B)  $246.67. 
C)  $380.00. 
D)  $280.00. 
A)  $133.33. 
B)  $246.67. 
C)  $380.00. 
D)  $280.00.

Question 3

On May 31, Mason Corporation has the following stockholders' equity:
Common Stock, $10 par value, 9,000 shares  
 The board of directors declared a 10% stock dividend on June 5 to the stockholders of record on June 15. The stock is to be distributed on June 30. On the date of declaration, the stock had a market value of $13 per share. Prepare the appropriate journal entries for these transactions.

Accepted Answer

The answer of On May 31, Mason Corporation has the...

Question 4

A prior period adjustment is corrected to the beginning balance of Retained Earnings.

Accepted Answer

A) True 
 B)False

Question 5

Redemption value is determined at the time stock is issued.

Accepted Answer

A) True 
 B)False

Question 6

A corporation purchased 110 shares of treasury stock for $45. The entry to record the transaction would include a:

Accepted Answer

A)  debit to Cash for $4,950. 
B)  credit to Treasury Stock for $4,950. 
C)  debit to Treasury Stock for $4,950. 
D)  None of these answers is correct. 
A)  debit to Cash for $4,950. 
B)  credit to Treasury Stock for $4,950. 
C)  debit to Treasury Stock for $4,950. 
D)  None of these answers is correct.

Question 7

Treasury stock should usually be recorded at:

Accepted Answer

A)  par or stated value. 
B)  cost. 
C)  original issue price. 
D)  net realizable value. 
A)  par or stated value. 
B)  cost. 
C)  original issue price. 
D)  net realizable value.

Question 8

Declaration of a cash dividend causes:

Accepted Answer

A)  a decrease in stockholders' equity. 
B)  an increase in cash. 
C)  a decrease in liabilities. 
D)  None of these answers is correct. 
A)  a decrease in stockholders' equity. 
B)  an increase in cash. 
C)  a decrease in liabilities. 
D)  None of these answers is correct.

Question 9

A dividend is declared by:

Accepted Answer

A)  the board of directors. 
B)  president of the corporation. 
C)  CFO of the corporation. 
D)  stockholders. 
A)  the board of directors. 
B)  president of the corporation. 
C)  CFO of the corporation. 
D)  stockholders.

Question 10

An exchange of one share of an old issue of stock for a multiple number of shares of a new issue of stock with reduced par value is known as a:

Accepted Answer

A)  property dividend. 
B)  stock dividend. 
C)  stock split. 
D)  liquidating dividend. 
A)  property dividend. 
B)  stock dividend. 
C)  stock split. 
D)  liquidating dividend.

Question 11

An entry to appropriate a portion of retained earnings to finance a future plant expansion would include a credit to:

Accepted Answer

A)  Paid-in Capital in Excess of Par. 
B)  Retained Earnings Appropriated for Plant Expansion. 
C)  Retained Earnings. 
D)  Unappropriated Retained Earnings. 
A)  Paid-in Capital in Excess of Par. 
B)  Retained Earnings Appropriated for Plant Expansion. 
C)  Retained Earnings. 
D)  Unappropriated Retained Earnings.

Question 12

Discuss and describe the major differences among the following common stock values:
a. Par value
b. Stated value
c. Redemption value
d. Market value
e. Book value

Accepted Answer

a. Par value is an entirely arbitrary am

Question 13

Redemption of stock allows the corporation to repurchase or retire stock at the issued price per share.

Accepted Answer

A) True 
 B)False

Question 14

What is the correct journal entry for the following transaction? Airline Express acquired 290 shares of its own $8 par common stock for $21.

Accepted Answer

A)  Debit Treasury Stock-Common for $2,320 and credit Cash for $2,320 
B)  Debit Treasury Stock-Common for $6,090 and credit Cash for $6,090 
C)  Debit Cash for $2,320 and credit Treasury Stock-Common for $2,320 
D)  Debit Cash for $6,090 and credit Treasury Stock-Common for $6,090 
A)  Debit Treasury Stock-Common for $2,320 and credit Cash for $2,320 
B)  Debit Treasury Stock-Common for $6,090 and credit Cash for $6,090 
C)  Debit Cash for $2,320 and credit Treasury Stock-Common for $2,320 
D)  Debit Cash for $6,090 and credit Treasury Stock-Common for $6,090

Question 15

An error understating Net Income would overstate Retained Earnings.

Accepted Answer

A) True 
 B)False

Question 16

Using the following accounts:
Indicate the account(s) to be debited and credited to record the following transactions.
-Declared a stock dividend when the market price was above par.
Debit ________ Credit ________ & ________

Accepted Answer

A) Cash 
B) Dividends payable 
C) Preferred stock 
D) Common stock 
E) Common Stock dividend distributable
F)Paid-in capital in excess of par value-common
G)Paid-in capital in excess of par value - preferred
H)Paid-in capital from treasury stock
I)Retained earnings
J)Treasury stock
K)Paid-in capital in excess of par value-Stock dividend 
A) Cash 
B) Dividends payable 
C) Preferred stock 
D) Common stock 
E) Common Stock dividend distributable
F)Paid-in capital in excess of par value-common
G)Paid-in capital in excess of par value - preferred
H)Paid-in capital from treasury stock
I)Retained earnings
J)Treasury stock
K)Paid-in capital in excess of par value-Stock dividend

Question 17

From the following, determine the book value per share for preferred and common stocks; no dividends are in arrears on the preferred stock.

Accepted Answer

The answer of From the following, determine the book value...

Question 18

Under the legal capital approach, issuance of a stock dividend would:

Accepted Answer

A)  increase Cash and decrease Common Stock. 
B)  decrease Common Stock Dividend Distributable and increase Common Stock. 
C)  increase Common Stock Dividend Distributable and increase Cash. 
D)  decrease Cash and increase Common Stock. 
A)  increase Cash and decrease Common Stock. 
B)  decrease Common Stock Dividend Distributable and increase Common Stock. 
C)  increase Common Stock Dividend Distributable and increase Cash. 
D)  decrease Cash and increase Common Stock.

Question 19

Payment of a cash dividend causes:

Accepted Answer

A)  a decrease in liabilities. 
B)  an increase in an asset. 
C)  an increase in stockholders' equity. 
D)  All of the above are correct. 
A)  a decrease in liabilities. 
B)  an increase in an asset. 
C)  an increase in stockholders' equity. 
D)  All of the above are correct.

Question 20

If treasury stock is sold for less than cost, the entry to record the transaction would include a:

Accepted Answer

A)  debit to Treasury Stock. 
B)  credit to Treasury Stock. 
C)  debit to Common Stock. 
D)  None of these answers is correct. 
A)  debit to Treasury Stock. 
B)  credit to Treasury Stock. 
C)  debit to Common Stock. 
D)  None of these answers is correct.

Exam 19: Corporations: Stock Values, Dividends, Treasury Stocks,

The date of payment is the date established by the board of directors that determines which stockholders will receive the dividend.

Ariel Investigations has total paid-in capital of $74,000 and retained earnings of $40,000. It has 300 shares of $100 par value common stock outstanding, and no preferred shares outstanding. The book value of each share of common stock is: (Round your answer to the nearest cent.)

A prior period adjustment is corrected to the beginning balance of Retained Earnings.

Redemption value is determined at the time stock is issued.

A corporation purchased 110 shares of treasury stock for $45. The entry to record the transaction would include a:

Treasury stock should usually be recorded at:

Declaration of a cash dividend causes:

A dividend is declared by:

An exchange of one share of an old issue of stock for a multiple number of shares of a new issue of stock with reduced par value is known as a:

An entry to appropriate a portion of retained earnings to finance a future plant expansion would include a credit to:

Discuss and describe the major differences among the following common stock values: a. Par value b. Stated value c. Redemption value d. Market value e. Book value

Redemption of stock allows the corporation to repurchase or retire stock at the issued price per share.

What is the correct journal entry for the following transaction? Airline Express acquired 290 shares of its own $8 par common stock for $21.

An error understating Net Income would overstate Retained Earnings.

Using the following accounts: Indicate the account(s) to be debited and credited to record the following transactions. -Declared a stock dividend when the market price was above par. Debit ________ Credit ________ & ________

From the following, determine the book value per share for preferred and common stocks; no dividends are in arrears on the preferred stock.

Under the legal capital approach, issuance of a stock dividend would:

Payment of a cash dividend causes:

If treasury stock is sold for less than cost, the entry to record the transaction would include a:

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: Organizations and Stock

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Departmental Accounting

Manufacturing Accounting

Filters

Using the following accounts: Indicate the account(s) to be debited and credited to record the following transactions. -Declared a stock dividend when the market price was above par. Debit Credit &