Exam 18: Corporations: Organizations and Stock

Jane Kathryn has 30,000 shares outstanding of $10 par value, 10% preferred stock and 100,000 shares outstanding $5 par value common stock. In the first 3 years of operations, the company paid dividends in Year 1, $0; Year 2, $40,000; Year 3, $100,000. Calculate the dividend paid to preferred and common stockholders under the following independent situations: a) Preferred is non-cumulative and nonparticipating. b) Preferred is cumulative and nonparticipating. c) Preferred is cumulative and participating.

Elegant Corporation received subscriptions for 100 shares of its $105 par value common stock for $124 per share. The entry to record the receipt of the subscriptions would include a:

Describe a stock subscription plan.

Journalize the following stock transactions for Rick Corporation. July 22 Issued 10,000 shares of $6 par common stock for $45,000 cash. 28 Issued 6,000 shares of $4 par common stock for $35,000 cash. 31 Issued 4,000 shares of $10 par, 7% preferred stock for $50,000 cash.

Korgen Company sells common stock at par value, and records a:

The account that is a current asset on balance sheet representing the amount due on stock subscriptions is:

Which of the following is NOT one of the procedural steps for calculating dividends with cumulative, fully participating preferred stock?

A type of preferred stock that entitles its holders an opportunity to share in additional dividends with common stockholders is known as:

The Zonga Corporation Stockholders' Equity section includes the following: Total paid-in capital is:

If stock shares are sold at more than their par value, the excess money is called:

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.

Journalize the transactions for the stock subscription plan for Oro Company. On March 1, Oro received subscriptions for 120 shares of $15 par value common stock at $20 per share. The buyer will pay two equal installments on April 1 and July 1. Assume all payments are made as scheduled and the company issues the stock on August 1.

The journal entry to record the final installment from a common stock subscription is:

Journalize the transactions for the stock subscription plan for Poplar Company. On April 1, Poplar received subscriptions for 250 shares of $20 par value common stock at $26 per share. The buyer will pay two equal installments on May 1 and July 1. Assume all payments are made as scheduled and the company issues the stock after the July 1 collection.

The source of capital approach:

An advantage of a corporation would be:

Identify the account types used in recording transactions related to a stock subscription plan: Subscriptions Receivable-Common Stock; Common Stock Subscribed, Paid-In Capital in Excess of Par Value-Common, Common Stock, Cash. Also list the financial statement where the accounts are found.

No-par value is placed on stock certificate when the stock has no-par value and no stated value.

When a corporation has only one class of capital stock, it will be common stock.

The entry to record selling 2,000 shares of no-par common stock with no stated value at $180 per share would be to: