Question 1

If Dakota Company issues 1,500 shares of $6 par common stock for $75,000,

Accepted Answer

A) Common Stock will be credited for $75,000 
B) Paid-In Capital in Excess of Par will be credited for $9,000 
C) Paid-In Capital in Excess of Par will be credited for $66,000 
D) Cash will be debited for $66,000 
A) Common Stock will be credited for $75,000 
B) Paid-In Capital in Excess of Par will be credited for $9,000 
C) Paid-In Capital in Excess of Par will be credited for $66,000 
D) Cash will be debited for $66,000

Question 2

A corporation has 50,000 shares of $25 par stock outstanding that has a current market value of $150 per share.If the corporation issues a 5-for-1 stock split,the market value of the stock after the split will be approximately

Accepted Answer

A) $25 
B) $150 
C) $5 
D) $30 
A) $25 
B) $150 
C) $5 
D) $30

Question 3

Cash dividends are normally paid on shares of treasury stock.

Accepted Answer

A) True 
 B)False

Question 4

On February 1 of the current year,Motor,Inc.issued 700 shares of $2 par common stock to an attorney in return for preparing and filing the articles of incorporation.The value of the services is $9,600.Journalize this transaction.

Accepted Answer

Feb.1 Organizational Expenses

Question 5

A stock split results in a transfer at market value from retained earnings to paid-in capital.

Accepted Answer

A) True 
 B)False

Question 6

Sabas Company has 20,000 shares of $100 par,2% cumulative preferred stock and 100,000 shares of $50 par common stock.The following amounts were distributed as dividends:
 $\begin{array}{rr}
\text { Year 1: } & \$ 10,000 \
\text { Year 2: } & 45,000 \
\text { Year 3: } & 90,000
\end{array}$ 
Determine the dividends per share for preferred and common stock for each year.

Accepted Answer

None

Question 7

When common stock is issued in exchange for land,the land should be recorded in the accounts at the par value of the stock issued.

Accepted Answer

A) True 
 B)False

Question 8

169.	Journalize the following selected transactions completed during the current fiscal year:

Mar.  4	The board of directors of New Town, Inc. declared a stock split that reduced the par of common shares from $100 to $20. This action increased the number of outstanding shares to 500,000.

26	Declared a dividend of $1.75 per share on the outstanding shares of common stock.

Apr.   5	Paid the dividend declared on March 26.

Nov.   1	Declared a 5% stock dividend on the common stock outstanding the fair market value of the stock to be issued is $25.

Dec.   1	Issued the certificates for the common stock dividend declared on November 1.

Accepted Answer

None

Question 9

On April 2 a corporation purchased for cash 5,000 shares of its own $10 par common stock at $16 a share.It sold 3,000 of the treasury shares at $19 a share on June 10.The remaining 2,000 shares were sold on November 10 for $12 a share.
a Journalize the entries to record the purchase treasury stock is recorded at cost.
b Journalize the entries to record the sale of the stock.

Accepted Answer

None

Question 10

The stock dividends distributable account is listed in the current liability section of the balance sheet.

Accepted Answer

A) True 
 B)False

Question 11

How is treasury stock shown on the balance sheet?

Accepted Answer

A) as an asset 
B) as a decrease in stockholders' equity 
C) as an increase in stockholders' equity 
D) treasury stock is not shown on the balance sheet 
A) as an asset 
B) as a decrease in stockholders' equity 
C) as an increase in stockholders' equity 
D) treasury stock is not shown on the balance sheet

Question 12

Which of the following is the appropriate general journal entry to record the declaration of cash dividends?

Accepted Answer

A) Retained Earnings Cash 
B) Cash Dividends Payable Cash 
C) Paid­In Capital Cash Dividends Payable 
D) Cash Dividends Cash Dividends Payable 
A) Retained Earnings Cash 
B) Cash Dividends Payable Cash 
C) Paid­In Capital Cash Dividends Payable 
D) Cash Dividends Cash Dividends Payable

Question 13

Treasury Stock is listed in the stockholders' equity section on the balance sheet.

Accepted Answer

A) True 
 B)False

Question 14

When no-par common stock with a stated value is issued for cash,the common stock account is credited for an amount equal to the cash proceeds.

Accepted Answer

A) True 
 B)False

Question 15

The price at which a stock can be sold depends upon a number of factors.Which statement below is not one of those factors?

Accepted Answer

A) the financial condition,earnings record,and dividend record of the corporation 
B) investor expectations of the corporation's earning power 
C) how high the par value is 
D) general business and economic conditions and prospects 
A) the financial condition,earnings record,and dividend record of the corporation 
B) investor expectations of the corporation's earning power 
C) how high the par value is 
D) general business and economic conditions and prospects

Question 16

A company had the following stockholders' equity information available at year-end.
- Issued 11,000 shares of $2.00 par value common stock for $12.00 per share.
- Issued 5,000 shares of $50 par value 6% preferred stock for $70 per share.
- Purchased 1,000 shares of previously issued common stock for $15.00 per share.
- Reported net income of $200,000.
- Declared and paid the preferred stock dividend.
Calculate the earnings per share for the current year.

Accepted Answer

$200,000 - $15,000/1

Question 17

Treasury stock that had been purchased for $5,600 last month was reissued this month for $8,500.The journal entry to record the reissuance would include a credit to

Accepted Answer

A) Treasury Stock for $8,500 
B) Paid-In Capital from Sale of Treasury Stock for $8,500 
C) Paid­In Capital in Excess of Par-Common Stock for $2,900 
D) Paid-In Capital from Sale of Treasury Stock for $2,900 
A) Treasury Stock for $8,500 
B) Paid-In Capital from Sale of Treasury Stock for $8,500 
C) Paid­In Capital in Excess of Par-Common Stock for $2,900 
D) Paid-In Capital from Sale of Treasury Stock for $2,900

Question 18

If 100 shares of treasury stock were purchased for $50 per share and then sold at $60 per share,$1,000 of income is reported on the income statement.

Accepted Answer

A) True 
 B)False

Question 19

Alma Corp.issues 1,000 shares of $10 par common stock at $14 per share.When the transaction is recorded,credits are made to

Accepted Answer

A) Common Stock,$14,000 
B) Common Stock,$10,000,and Paid-In Capital in Excess of Par,$4,000 
C) Common Stock,$4,000,and Paid-In Capital in Excess of Stated Value,$10,000 
D) Common Stock,$10,000,and Retained Earnings,$4,000 
A) Common Stock,$14,000 
B) Common Stock,$10,000,and Paid-In Capital in Excess of Par,$4,000 
C) Common Stock,$4,000,and Paid-In Capital in Excess of Stated Value,$10,000 
D) Common Stock,$10,000,and Retained Earnings,$4,000

Question 20

Treasury stock that was purchased for $3,000 is sold for $3,500.As a result of these two transactions combined

Accepted Answer

A) income will be increased by $500 
B) stockholders' equity will be increased by $3,500 
C) stockholders' equity will be increased by $500 
D) stockholders' equity will not change 
A) income will be increased by $500 
B) stockholders' equity will be increased by $3,500 
C) stockholders' equity will be increased by $500 
D) stockholders' equity will not change

If Dakota Company issues 1,500 shares of $6 par common stock for $75,000,

A corporation has 50,000 shares of $25 par stock outstanding that has a current market value of $150 per share.If the corporation issues a 5-for-1 stock split,the market value of the stock after the split will be approximately

Cash dividends are normally paid on shares of treasury stock.

On February 1 of the current year,Motor,Inc.issued 700 shares of $2 par common stock to an attorney in return for preparing and filing the articles of incorporation.The value of the services is $9,600.Journalize this transaction.

A stock split results in a transfer at market value from retained earnings to paid-in capital.

Sabas Company has 20,000 shares of $100 par,2% cumulative preferred stock and 100,000 shares of $50 par common stock.The following amounts were distributed as dividends: Year 1: \ 10,000 Year 2: 45,000 Year 3: 90,000 Determine the dividends per share for preferred and common stock for each year.

When common stock is issued in exchange for land,the land should be recorded in the accounts at the par value of the stock issued.

The stock dividends distributable account is listed in the current liability section of the balance sheet.

How is treasury stock shown on the balance sheet?

Which of the following is the appropriate general journal entry to record the declaration of cash dividends?

Treasury Stock is listed in the stockholders' equity section on the balance sheet.

When no-par common stock with a stated value is issued for cash,the common stock account is credited for an amount equal to the cash proceeds.

The price at which a stock can be sold depends upon a number of factors.Which statement below is not one of those factors?

Treasury stock that had been purchased for $5,600 last month was reissued this month for $8,500.The journal entry to record the reissuance would include a credit to

If 100 shares of treasury stock were purchased for $50 per share and then sold at $60 per share,$1,000 of income is reported on the income statement.

Alma Corp.issues 1,000 shares of $10 par common stock at $14 per share.When the transaction is recorded,credits are made to

Treasury stock that was purchased for $3,000 is sold for $3,500.As a result of these two transactions combined

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley,internal Control,and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

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

If Dakota Company issues 1,500 shares of $6 par common stock for $75,000,

A corporation has 50,000 shares of $25 par stock outstanding that has a current market value of $150 per share.If the corporation issues a 5-for-1 stock split,the market value of the stock after the split will be approximately

Cash dividends are normally paid on shares of treasury stock.

On February 1 of the current year,Motor,Inc.issued 700 shares of $2 par common stock to an attorney in return for preparing and filing the articles of incorporation.The value of the services is $9,600.Journalize this transaction.

A stock split results in a transfer at market value from retained earnings to paid-in capital.

Sabas Company has 20,000 shares of $100 par,2% cumulative preferred stock and 100,000 shares of $50 par common stock.The following amounts were distributed as dividends: Year 1: \ 10,000 Year 2: 45,000 Year 3: 90,000 Determine the dividends per share for preferred and common stock for each year.

When common stock is issued in exchange for land,the land should be recorded in the accounts at the par value of the stock issued.

The stock dividends distributable account is listed in the current liability section of the balance sheet.

How is treasury stock shown on the balance sheet?

Which of the following is the appropriate general journal entry to record the declaration of cash dividends?

Treasury Stock is listed in the stockholders' equity section on the balance sheet.

When no-par common stock with a stated value is issued for cash,the common stock account is credited for an amount equal to the cash proceeds.

The price at which a stock can be sold depends upon a number of factors.Which statement below is not one of those factors?

Treasury stock that had been purchased for $5,600 last month was reissued this month for $8,500.The journal entry to record the reissuance would include a credit to

If 100 shares of treasury stock were purchased for $50 per share and then sold at $60 per share,$1,000 of income is reported on the income statement.

Alma Corp.issues 1,000 shares of $10 par common stock at $14 per share.When the transaction is recorded,credits are made to

Treasury stock that was purchased for $3,000 is sold for $3,500.As a result of these two transactions combined

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley,internal Control,and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

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