Exam 13: Corporations

On December 1, 2015, Arthur Company had 30,000 shares of $5 par value common stock issued and outstanding. The next day they declared a 50% stock dividend. The market value of the stock on that date was $9 per share. Which of the following is the correct journal entry to record this transaction?

Refer to the following information for Tangent Corporation: • Common stock, $1.00 par, 100,000 issued, 95,000 outstanding • Paid-In capital in excess of Par-Common: $2,150,000 • Retained earnings: $910,000 • Treasury stock: 5,000 shares purchased at $20 per share If Tangent resold 1,200 shares of treasury stock for $14.5 per share, which of the following statements would be true?

Which of the following occurs when a corporation's board of directors declares a 10% stock dividend?

The following information is from the balance sheet of Jackson Corporation as of December 31, 2015. What is the average issue price of the preferred stock shares?

The rate of return on common stockholders' equity shows the relationship between net income available to common stockholders and their average common equity invested in the company.

Which of the following statements is true?

Companies usually report their retained earnings restrictions on the balance sheet.

Gordon Corporation reported the following equity section on its current balance sheet. The common stock is currently selling for $11.50 per share. What would be the total stockholders' equity after a 10% common stock dividend?

Which of the following would be included in the entry to record the issuance of 5,000 shares of $10 par value common stock at $13 per share cash?

A dividend's declaration date is the date the corporation records which stockholders get dividend checks.

Which of the following characteristics is an advantage of the corporate form of business?

A company cannot report a gain or loss when buying or selling its own stock.

Memorandum entry is an entry in the journal that notes a significant event, but has no debit or credit amount.

Happy Holiday, Inc. has 100,000 shares of common stock issued and outstanding, with a par value of $0.01 per share. They declared a 15% common stock dividend; market value is $12 per share. Which of the following is the correct journal entry to record the transaction?

Which of the following is true of stockholders?

The following information is from the balance sheet of Lawson Corporation as of December 31, 2015. What was the average issue price of the common stock shares?

The journal entry for the purchase of treasury stock includes a credit to the Cash account.

Paid-in capital consists of:

Treasury stock is recorded at cost without reference to par value.

Which of the following best describes restrictions on cash dividends and treasury stock purchases?