Exam 18: Corporations: Organizations and Stock

A corporation shares its profits with stockholders in the form of dividends.

A change in ownership terminates the corporation.

Mack Corporation has been issued a charter by the state of New Hampshire.This charter gives Mack the authority to issue 20,000 shares of $25 par value preferred stock and 100,000 shares of $10 par value common stock.Journalize the entries listed below. $\text {June 1}$ $\quad$$\text { Issued 4,047 shares of preferred stock at \$ 28 per share. }$ $\quad$ $\quad$ $\quad$$\text {4 Issued 5,4tt shares of comnon stock at \$ 16 per share.}$ $\quad$ $\quad$ $\quad$$\text { 13 Issued 6, ttt shares of comnon stock at \$ 18 per share.}$ $\quad$ $\quad$ $\quad$$\text { 21 Issued 1,04t shares of preferred stock at \$ 37 per share.}$

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 non-cumulative with no dividends distributed last year.

An amount determined by the corporation directors and assigned to no-par value stock is:

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 services of corporation organizers (valued at par). Debit ________ & ________ & ________ Credit ________ & ________ & ________

Describe a stock subscription plan.

Tory Company received the first installment of $3,200 on a common stock subscription.The entry to record the collection would include a:

Number of preferred shares times par value times dividend rate is the formula used to determine dividends to be paid.

Soy.com Corporation has 100 shares of $100,6% cumulative nonparticipating preferred stock and 1,000 shares of $10 par value common stock outstanding.The company paid $2,000 cash dividends including one-year dividends in arrears to preferred stockholders.Preferred stockholders received:

Journalize the following independent transactions: a)Casey Company sells 250 shares of $20 par-value common stock at $20. b)Jacob Corporation sells 100 shares of $15 par-value common stock at $20. c)Moss Inc.sells 40 shares of no-par common stock with a $15 stated value for $30 per share.

The Zonga Corporation Stockholders' Equity section includes the following: Preferred Stock \ 22,000 Common Stock 48,000 Paid-in Capital in Excess of Par-Preferred 2,980 Paid-in Capital in Excess of Par-Common 3,400 Retained Earnings 7,350 Total paid-in capital is:

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 preferred stock at a price equal to par value. Debit ________ & ________ & ________ Credit ________ & ________ & ________

A stock certificate is released for authorized stock.

Preferred stock that is given a right to share with the common stock in dividends in excess of a stated preferred dividend rate is called:

Which of the following is a characteristic of a corporation?

A common shareholder's right to purchase an equivalent percentage of new stock is his preemptive right.

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 above par accepting a subscription. Debit ________ & ________ & ________ Credit ________ & ________ & ________

Cox Corporation has issued 1,000 shares of stock.Janis owns 200 shares.If the corporation issues an additional 500 shares,how many shares does Janis have the preemptive right to purchase?

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. -Purchased land by exchanging common stock (valuation is above par) Debit ________ & ________ & ________ Credit ________ & ________ & ________