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

Capital stock represents the number of shares of stock a corporation is authorized by a state to sell.

A corporation is a separate legal entity from its owners.

Evergreen Corp.issues 10,000 shares of $5 par common stock for $6.50 per share.The amount credited to paid-in capital in excess of par is:

The entry to record TLR,Inc.selling 800 shares of $6 par common stock at $8 per share would be to:

Charmed,Inc.has 5,000 shares of treasury stock which it purchased for $13/share.It later resold 2,000 of those shares for $17/share.The amount to be credited to Paid-in Capital-Treasury Stock is:

The date of record is the date that:

The Wellington Winery's Stockholders' Equity section includes the following information: What was the total selling price of the common stock?

A company issues 25,000 shares of its $25 par common stock for $27 per share.The entry to record this will include a debit to Cash for $675,000.

Mike's Motors has 200,000 shares of $5-par common stock outstanding.They have declared a 10% stock dividend.The current market price of the common stock is $11/share.The amount that will be debited to Retained Earnings on the date of declaration is:

The major parts of the Stockholders' Equity section of the Balance Sheet are:

Return on equity shows the relationship between net income and ending Stockholders' Equity.

HiTech Industries reacquired 10,000 shares of its $25-par common stock for $61/share.The debit to Treasury Stock will be:

Cypress Corporation's outstanding stock is 75 shares of $60-par,8% non-cumulative preferred stock and 2,000 shares of $10-par common stock.Cypress paid $2,400 in dividends during the year.Common stockholders received:

The number of shares of stock that a corporation is given the right to sell is called:

Which of the following business types is largest by number?

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

Stockholders receiving their proportionate share of any assets left after a company goes out of business is an example of which stockholder right?

The liability "dividend payable" is recognized on the date of:

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.

If a company has 2,500 shares authorized and 1,500 have been issued,the annual dividends on $20 par 5% preferred stock is $1,500.