Exam 10: Corporations: Paid-In Capital and Retained Earnings

If a company has 15,000 shares outstanding before a 3-for-1 stock split, then after the split they will have 5,000 shares outstanding.

A company issues 20,000 shares of its $28 par common stock for $32 per share. The entry to record this will include a debit to Cash for $560,000.

Stock that is held by stockholders is called:

Based on the following information, in which year did the company have the best return on equity?

Which of the following are considered to be legal entities that exist separate and distinct from their owners?

Lionworks, Inc. issues 5,000 shares of $40 par common stock for $43 per share. The amount credited to paid-in capital in excess of par is:

S&C, Inc. has 420,000 shares of $12-par common stock outstanding. They have declared a 7% stock dividend. The current market price of the common stock is $19/share. The amount that will be credited to Paid-in Capital in Excess of Par Common Stock on the date of declaration is:

What is the return on equity if sales are $140,000, net income is $22,700 and average common Stockholders' Equity is $86,000? (Round your final answer to one decimal place, X.X%.)

Which of the following stockholder rights is the one that allows a stockholder to participate in the management of a corporation?

The type of stock that does NOT carry paid-in capital in excess of par is called:

Evergreen Building, Inc. issued 2,000 shares of $14 par common stock in exchange for a truck with a current market value of $45,000. Which of the following is NOT part of the journal entry for this transaction?

Elite Electrical has 380,000 shares of $4-par common stock outstanding. They have declared a 5% stock dividend. The current market price of the common stock is $7.50/share. The amount that will be credited to common stock on the date of declaration is:

Anderson Industries purchased 600 shares of the company's issued common stock, paying $14 per share. To record the purchase, the journal entry will be:

A corporate charter describes the purpose, place of business, and other details of the business being incorporated.

A company can have a profit or loss when buying or selling its own stock.

What are the annual dividends on $22 par preferred 5% stock, if 2,100 shares are authorized and 800 shares have been issued?

For the current year, Blue Co. had net income of $200,000, beginning Stockholders' Equity $500,000 and ending Stockholders' Equity $535,000. Greene Co. had net income of $100,000, beginning Stockholders' Equity $900,000 and ending Stockholders' Equity $950,000. Which of the following statements is TRUE regarding this scenario?

Earnings that a stockholder receives from a corporation is an example of which stockholder right?

The date of record is the date that:

If you own 1,100 shares (7% of a corporation's stock)and the corporation issues 14,000 new shares, how many of the new shares can your purchase under preemptive right?