Exam 11: Corporations: Organization,stock Transactions,and Dividends

A corporation,which had 18,000 shares of common stock outstanding,declared a 3-for-1 stock split. a- What will be the number of shares outstanding after the split? b- If the common stock had a market price of $240 per share before the stock split,what would be an approximate market price per share after the split? c- Journalize the entry to record the stock split.

Which of the following amounts should be disclosed in the stockholders' equity section of the balance sheet?

The charter of a corporation provides for the issuance of 100,000 shares of common stock.Assume that 45,000 shares were originally issued and 5,000 were subsequently reacquired.What is the amount of cash dividends to be paid if a $2 per share dividend is declared?

Sabas Company has 20,000 shares of $100 par,1% noncumulative preferred stock and 100,000 shares of $50 par common stock.The following amounts were distributed as dividends: Year 1: \ 10,000 Year 2: 15,000 Year 3: 90,000 Determine the dividends per share for preferred and common stock for each year.

The retained earnings statement may be combined with the income statement.

The balance in Retained Earnings should be interpreted as representing surplus cash left over for dividends.

The par value of stock is an assigned per share amount defined in many states as legal capital.

Wonder Sales is authorized to issue 100,000 shares of 2%,$100 par preferred stock and 1,000,000 shares of $10 par common stock.Journalize the following transactions. a-On January 2,Wonder Sales issues 5,000 shares of preferred stock for $110 per share and 65,000 shares of common stock at $10 per share. b- On January 25,Wonder Sales issued 250 shares of preferred stock to a Morton Law Firm for settlement of a $36,000 invoice for incorporation services. c -On January 31,Wonder Sales issues 500 shares of common stock to Setup Inc.for fixtures that have a fair market value of $8,500.

Which of the following is not a characteristic of a corporation?

Which of the following statements concerning taxation is accurate?

The term deficit is used to refer to a debit balance in which of the following accounts of a corporation?

The initial stockholders of a newly formed corporation are called directors.

Sabas Company has 40,000 shares of $100 par,1% preferred stock and 100,000 shares of $50 par common stock.The following amounts were distributed as dividends: Year 1: \ 50,000 Year 2: 90,000 Year 3: 130,000 Determine the dividends per share for preferred and common stock for each year.

Oregon,Inc.reported net income of $105,000.During the current year,the company had 5,000 shares of $100 par,5% preferred stock and 10,000 of $5 par common stock outstanding.Oregon's earnings per share is

The entry to record the issuance of 150 shares of $5 par common stock at par to an attorney in payment of legal fees for organizing the corporation includes a credit to

Stockholders' equity

Cash dividends become a liability to a corporation on the date of record.

Nebraska Inc.issues 3,000 shares of common stock for $45,000.The stock has a stated value of $10 per share.The journal entry to record the stock issuance would include a credit to Common Stock for

Kansas Company acquired a building valued at $210,000 for property tax purposes in exchange for 12,000 shares of its $5 par common stock.The stock is widely traded and selling for $15 per share.At what amount should the building be recorded by Kansas Company?

Organizational expenses are classified as intangible assets on the balance sheet.