Exam 18: Corporations: Organizations and Stock

The Bean Counter Corporation received subscriptions for 100 shares of its $10 par value common stock at $13 per share. The entry to record receipt of the subscriptions would include a:

ABC sells 400 shares of its $23 par common stock for $27. The entry would entail a credit(s)of:

Jane Kathryn has 30,000 shares outstanding of $10 par value, 10% preferred stock and 100,000 shares outstanding $5 par value common stock. In the first 3 years of operations, the company paid dividends in Year 1, $0; Year 2, $40,000; Year 3, $100,000. Calculate the dividend paid to preferred and common stockholders under the following independent situations: a)Preferred is non-cumulative and nonparticipating. b)Preferred is cumulative and nonparticipating. c)Preferred is cumulative and participating.

To calculate dividends on par-value preferred stock:

The articles of incorporation are:

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

Journalize the following stock transactions for Rick Corporation.

Common stock was sold in excess of par; the excess was credited to Sales. This error would cause:

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.

When a corporation has only one class of stock, it will be common stock.

Monarch Company reported Subscriptions Receivable-Common Stock of $1,500 and Common Stock Subscribed of $3,200 on its balance sheet. All the following are true except:

Prepare the journal entries for Mayhem Manufacturing: June 10 Incurred organization costs totaling $4,200 June 14 Issued 9,000 shares of $10 par value common stock for $110,000 June 22 Issued 3,500 shares of 7%, $30 par value preferred stock for $115,000.

Corporations can issue:

Using the following accounts: 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 ________ & ________ & ________

Preemptive rights allow a stockholder to:

When a company sells stock at an amount greater then par value, the excess amount is referred to as:

In the stockholders' equity section of a balance sheet:

Articles of incorporation contain all of the following except:

A company would rarely sell its stock for below par value.

Shares of outstanding stock always equal the number of shares of authorized stock.