Exam 12: Corporations: Paid-In Capital and the Balance Sheet

Orleans Company was incorporated on January 1, 2012. Orleans issued 4,000 shares of common stock and 500 shares of preferred stock on that date. The preferred shares are cumulative, $100 par, with an 8% dividend rate. Orleans has not paid any dividends yet. In 2015, Orleans had its first profitable year, and on November 1, 2015, Orleans declared a total dividend of $28,000. What is the total amount that will be paid out to common shareholders?

The following information is from the balance sheet of Tudor Corporation as of December 31, 2014. Preferred stock, \ 100 par \ 500,000 Paid-in capital in excess of par-preferred 35,000 Common stock, \ 1 par 190,000 Paid-in capital in excess of par-common 380,000 Retained earnings 131,500 Total stockholders' equity \ 1,236,500 - What is the average issue price of the preferred stock shares?

Beta Company was founded in 20013. Its yearly earnings and dividend payments are shown here: 2013: Net income of $4,000, paid zero dividends 2014: Net income of $20,000, paid $10,000 dividends 2015: Net income of $8,000, paid $5,000 dividends 2016: Net loss of $22,000, paid zero dividends At the end of 2016, what would be the balance in Retained earnings?

Stock sold for amounts in excess of par value results in a gain reported on the income statement.

A corporation declares a dividend of $.75 per share on 12,500 shares of common stock. Which of the following would be included in the entry to record the declaration?

Normally, a company's book income and tax income should be the same.

Which of the following represents one of the basic rights of stockholders?

Retained earnings represents:

Overton Company had the following transactions in 2012, its first year of operations. • Issued 5,000 shares of common stock. Stock has par value of $0.01 per share and was issued at $30.00 Per share. • Earned net income of $200,000. • Paid dividends of $5.00 per share. - At the end of 2012, how much is the total Stockholders' equity?

Dallkin Corporation issued 5,000 shares of common stock on January 1, 2013. The stock has no par value and was sold at $18 per share. The journal entry for this transaction would:

Paid-in capital consists of:

Which of the following would be included in the entry to record the payment of a previously declared dividend of $.25 per share on 12,500 shares of common stock?

If preferred stock is non-cumulative, then the company does NOT need to pay dividends that were passed in previous years.

On November 1, 2013, Oster Company declared a dividend of $3.00 per share. Oster Company has 20,000 shares of common stock outstanding, and no preferred stock. The date of record is November 15, and the payment date is November 30, 2013. No journal entry is made on the date of record.

Please refer to the equity section of the balance sheet, below: Preferred stock, \ 50 par, 4\% , cumulative \ 5,000 1,000 shares authorized, 100 shares outstanding Common stock, \ 0.01 par 120 1,000,000 shares authorized, 12,000 shares outstanding Paid-in capital in exces of par 359,600 Retained earnings 153,280 Total stockholders' equity \ 518,000 - Assume there are $600 of preferred dividends in arrears which includes the current year. What is the book value per share of preferred stock?

Which of the following statements describes the corporate characteristic of easy transfer of corporate ownership?

Which of the following is TRUE of dividends in arrears?

A net loss for the year increases the balance in Retained earnings.

Porpoise Company has the following balances: • Common stock: $2,000 • Paid-in capital in excess of par: $298,000 • Retained earnings: $420,000 The company has no preferred stock and has 24,000 shares of common stock outstanding. How much is the book value per share of common stock?

Which of the following occurs when a shareholder invests cash in a corporation in exchange for stock?