Exam 19: Corporations: Stock Values, dividends, treasury Stocks, and Retained Earnings

Declaration of a cash dividend was recorded by debiting Operations Expense and crediting Cash.This error would cause:

The journal entry to record the issuance of a stock dividend is to:

The payment of wages was debited to Retained Earnings.This error would cause:

Retained Earnings is a current liability on the balance sheet.

Treasury stock should usually be recorded at:

Market value is the same as par value.

Appropriations of retained earnings are voted upon by stockholders.

Payment of a cash dividend causes:

Treasury stock was sold above cost; the excess was credited to Gain on Sale.This error would cause:

Using the following accounts: [1]Cash [2]Dividends payable [3]Preferred stock [4]Common stock [5]Dividend distributable [6]Paid-in capital in excess of par common stock [7]Paid-in capital in excess of par preferred stock [8]Paid-in capital from treasury stock [9]Retained earnings [10]Appropriation for plant expansion [11]Treasury stock [12]Income summary Indicate the account(s) to be debited and credited to record the following transactions. -Declared a stock dividend when the market price was above par. Debit ________ & ________& ________ Credit ________ & ________ & ________

The retained earnings section after a two-for-one stock split will:

A stock-split journal entry would include a:

Most companies report restrictions by using a footnote to the Retained Earnings account.

Using the following accounts: [1]Cash [2]Dividends payable [3]Preferred stock [4]Common stock [5]Dividend distributable [6]Paid-in capital in excess of par common stock [7]Paid-in capital in excess of par preferred stock [8]Paid-in capital from treasury stock [9]Retained earnings [10]Appropriation for plant expansion [11]Treasury stock [12]Income summary Indicate the account(s) to be debited and credited to record the following transactions. -Declared a cash dividend. Debit ________ & ________ & ________ Credit ________ & ________ & ________

Prepare a statement of retained earnings in proper form for Gray Corporation for the year ended December 31,20XX,from the following: Retained Earnings, January 1, 20xx \5 ,700 Dividends declared during the year 400 Net income for the year 12,000 Correction of prior year error, Sales overstated 3,200

An entry to appropriate a portion of retained earnings to finance a future plant expansion would include a debit to:

If a redemption value is not stated,market value is used instead.

Discuss and describe the major differences among the following common stock values: a.Par value b.Stated value c.Redemption value d.Market value e.Book value

Curtis Corporation's balance sheet included the following: Common Stock,$5 par value,5,000 shares issued and outstanding \ 25,000 Retained Earnings Total Stockholders' Equity Prepare journal entries for the following transactions: May 3 Issued 500 shares at \ 6 per share. 9 Reacquired 100 shares at \ 4 per share. 15 Reissued 50 of the Treasury shares at \ 7 per share 17 Reissued 10 of the Treasury shares at \ 3 per share.

When a stock dividend is distributed,the account to be credited would be: