Exam 13: Corporations

Pearland Company has 50,000 shares of common stock outstanding and 2,000 shares of preferred stock outstanding. The common stock is $1.00 par value. The preferred stock has a $100 par value, a 5% dividend rate, and is noncumulative. On October 31, 2015, the company declares dividends of $0.25 per share for common. Provide the journal entry for the declaration of dividends.

The following information is from the balance sheet of Tudor Corporation as of December 31, • 2015. What was the total paid-in capital as of December 31, 2015?

Which of the following is a reason for a company to announce a stock split?

Outstanding stock refers to the:

Peterson Company issued 4,000 shares of preferred stock for $240,000. The stock has a par value of $60 per share. Provide the journal entry for this transaction.

Which of the following is the correct description of dividends in arrears, as it applies to cumulative preferred stock?

Treasury stock is a:

A corporation reported the following equity section on its current balance sheet. The common stock is currently selling for $12.00 per share. Which of the following would be included in the entry to record the distribution of a 15% stock dividend?

A corporation declares a dividend of $0.50 per share on 10,000 shares of common stock. Which of the following would be included in the entry to record the declaration?

Dividends in arrears are:

On June 30, 2015, Roger Company showed the following data on the equity section of their balance sheet: On July 1, 2015, Roger declared and distributed a 5% stock dividend. The market value of the stock at that time was $13 per share. Following this transaction, what would be the new balance in Paid-In Capital in Excess of Par-Common?

The par value of stock is:

Which of the following is a true statement?

Which of the following explains the term "lack of mutual agency" of a corporation?

Landess Corporation currently has 120,000 shares outstanding of $1 par value common stock. The stock was originally issued for $12 per share. On March 15, the board of directors declares a 10% stock dividend when the stock is selling for $16 per share. Which of the following is the correct journal entry to record this transaction?

If a company retires preferred stock:

Which of the following is true of dividends?

Which of the following occurs when the board of directors declares a 3-for-1 stock split on 10,000 outstanding shares of $15 par common stock?

Assume the following information for Petra Sales Company: • Common stock, $1.00 par, 200,000 issued, 180,000 outstanding • Paid-in capital in excess of Par-Common: $1,600,000 • Retained earnings: $2,440,000 • Treasury stock: 20,000 shares purchased at $12 per share If Petra Sales purchases an additional 5,000 shares of treasury stock at $14 per share, what number of shares will be shown as issued and outstanding?

Preferred stock is a stock: