Exam 18: Corporations: Organizations and Stock

Authorized capital stock is:

The Harvester Corporation issued 40 shares of $20 par value stock to its accountant.The shares are in full payment for her $900 fee for assistance in setting up the new company.The entry to record the issuance of the stock would include a:

Alpha-Omega Industries has 30,000 shares of $12 par common stock and 15,000 shares of $50 par,5% preferred stock outstanding.Total dividends available are $162,000.Compute the dividends to be distributed to preferred and common stockholders under the following condition. The preferred stock is nonparticipating and cumulative with no dividends distributed last year.

If preferred stock is cumulative,the preferred stockholders:

An advantage of a corporation would be:

Using the following accounts: [1] Cash [2] Subscription receivable common stock [3] Machinery [4] Building [5] Land [6] Organization costs [7] Preferred stock [8] Common stock [9] Paid in capital in excess of par preferred stock [10] Paid in capital in excess of par common stock [11] Common stock subscribed [12] Discount on common stock [13] Amortization expense organization costs Indicate the account(s) to be debited and credited to record the following transactions. -Exchanged common stock for a building and land when the stock was selling at a discount. Debit ________ & ________ & ________ Credit ________ & ________ & ________

If stock shares are sold at more than their par value,the excess money is called:

Using the following accounts: [1] Cash [2] Subscription receivable common stock [3] Machinery [4] Building [5] Land [6] Organization costs [7] Preferred stock [8] Common stock [9] Paid in capital in excess of par preferred stock [10] Paid in capital in excess of par common stock [11] Common stock subscribed [12] Discount on common stock [13] Amortization expense organization costs Indicate the account(s) to be debited and credited to record the following transactions. -Sold common stock at a price equal to the par value. Debit ________ & ________ & ________ Credit ________ & ________ & ________

Alpha Corporation's has 1,500 shares of $40 par,7% cumulative preferred stock and 2,200 shares of $10 par common stock.Alpha paid $10,000 in cash dividends including one-year dividends in arrears to preferred stockholders.Common stockholders will receive:

RH Corporation Stockholders' Equity section includes the following information: Preferred Stock \ 11,000 Paid-in Capital in Excess of Par-Preferred 17,000 Common Stock 16,000 Paid-in Capital in Excess of Par-Common 4,000 Retained Earnings 7,000 Total paid-in capital is:

Journalize the transactions for the stock subscription plan for Nick Company.On February 1,Nick received subscriptions for 80 shares of $10 par value common stock at $12 per share.The buyer will pay two equal installments on March 1 and June 1.Assume all payments are made as scheduled and the company issues the stock after the June 1 collection.

List and discuss the (a)advantages and (b)disadvantages of the corporation form of business.

Jane Kathryn has 15,000 shares outstanding of $15 par value,5% preferred stock and 100,000 shares outstanding $10 par value common stock.In the first 3 years of operations,the company paid dividends in Year 1,$0; Year 2,$10,000; Year 3,$20,000.Calculate the dividend paid to preferred and common stockholders under the following independent situations: a)Preferred is non-cumulative and nonparticipating. 1 2 3 b)Preferred is cumulative and nonparticipating. 1 2 3

Alpha-Omega Industries has 30,000 shares of $12 par common stock and 15,000 shares of $50 par,5% preferred stock outstanding.Total dividends available are $162,000.Compute the dividends to be distributed to preferred and common stockholders under the following condition. The preferred stock is participating and non-cumulative with no dividends distributed last year.

Dividends in arrears occur when the company does not pay dividends to:

A major disadvantage of a corporation is the:

The major parts of the Stockholders' Equity section of the balance sheet are:

The entry to record selling 150 shares of no-par common stock with a stated value of $30 for $40 would be to:

When stock is exchanged for non-cash assets:

One type of preferred stock that provides for the payment of preferred dividends that are in arrears is called: