Exam 13: Corporations

Ross Corporation reported the following equity section on its current balance sheet: Which of the following would be included in the entry to record the corporation's purchase of 100,000 shares of its common stock for $7.50 per share?

Apira has 2,000 shares of common stock outstanding. A stockholder has 100 shares. If Apira distributes a 20% stock dividend, how many shares of Apira will the stockholder have?

Lerner Company had the following transactions in 2015, its first year of operations. • Issued 20,000 shares of common stock. Stock has par value of $1.00 per share and was issued at $14.00 per share. • Issued 1,000 shares of $100 par value preferred stock. Shares were issued at par. • Earned net income of $35,000. • Paid no dividends. At the end of 2015, what is the total amount of paid-in capital?

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 the Common stock account?

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

Which of the following occurs when a corporation distributes a stock dividend?

Stock dividends are declared by the:

A corporation originally issued $8 par value common stock for $9 per share. It purchased the stock for $10 per share for the treasury. Which of the following would be included in the entry to record the reissue of 20 shares of treasury stock for $11 per share?

The retained earnings of a corporation is the:

Which of the following will decrease the amount of Total Stockholders' Equity?

No journal entry is made on the dividend declaration date.

Osbourne Company issued 50,000 shares of common stock in exchange for manufacturing equipment. The equipment has a fair value of $1,000,000. The stock has par value of $0.01 per share. Which of the following is included in the journal entry to record this transaction?

Which of the following will happen to a stockholder's percentage ownership in the stock of a corporation when the corporation declares a stock dividend?

Which of the following actions will increase the balance in the Common Stock account?

Legal capital refers to the portion of stockholders' equity that cannot be used for dividends.

On June 30, 2015, Stephans Company showed the following data on the equity section of their balance sheet: On July 1, 2015, Stephans declared and distributed a 5% stock dividend. The market value of the stock at that time was $13 per share. Following this transaction, how much would the total stockholders' equity be?

On December 2, 2015, Ewell Company purchases a piece of land from the original owner. In payment for the land, Ewell Company issues 8,000 shares of common stock with $1.00 par value. The land has been appraised at a market value of $400,000. Which of the following is included in the journal entry to record this transaction?

Revival Corporation's annual report is follows. Based on the information provided, find the rate of return on common stockholders' equity on March 31, 2015.