Exam 18: Corporations: Organizations and Stock

Using the following accounts: 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 ________ & ________ & ________

Madison Corporation is authorized to issue 3,000 shares of common stock. Record the journal entry for each of the following independent situations. Assume Madison issues 750 shares at $15 on August 31. a)Common stock has a $10 per share par value. b)Common stock has no par value and no stated amount. c)Common stock is no-par stock with a stated value of $8 per share.

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

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

If preferred stock is cumulative, the preferred stockholders:

The journal entry for the receipt of a cash payment on common stock subscriptions would include:

Using the following accounts: Indicate the account(s)to be debited and credited to record the following transactions. -Sold common stock at a price above the par value. Debit ________& ________ & ________ Credit ________ & ________ & ________

The financial loss that each stockholder in a corporation can incur is limited to the amount invested by the stockholder.

In exchange for $1,500 legal services to help set up the new company, Hickory Grove Corporation issued 100 shares of $10 par value stock to its attorney. The entry to record the issuance of the stock would include a:

Using the following accounts: 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 ________ & ________ & ________

Using the following accounts: 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 ________ & ________ & ________

Voting rights are a characteristic of which type stock?

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.

Identify the account types used in recording transactions related to a stock subscription plan: Subscriptions Receivable-Common Stock; Common Stock Subscribed, Paid-In Capital in Excess of Par, Common Stock, Cash. Also list the financial statement where the accounts are found.

Corporations are subject to more government regulations than sole proprietorships and partnerships.

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?

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.

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:

The ownership of the corporation consists of:

If preferred dividends are limited to the stated rate of dividend, the preferred stock is: