A) is the same as contributed capital B) must be restricted by law C) changes are summarized in the retained earnings statement D) is equal to cash on hand A) is the same as contributed capital B) must be restricted by law C) changes are summarized in the retained earnings statement D) is equal to cash on hand

Exam 12: Corporations: Organization, stock Transactions, and Dividends

On April 1,10,000 shares of $5 par common stock were issued at $22,and on April 7,5,000 shares of $50 par preferred stock were issued at $104.Journalize the entries for April 1 and 7.

(Essay)

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Question 21

Marcos Company,which had 35,000 shares of common stock outstanding,declared a 4-for-1 stock split.

(Essay)

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Question 22

The cost of treasury stock is deducted from total paid-in capital and retained earnings in determining total stockholders' equity.

(True/False)

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Question 23

A 10% stock dividend will increase the number of shares outstanding but the book value per share will decrease.

(True/False)

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Question 24

Retained earnings

(Multiple Choice)

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Question 25

A corporation purchased 1,000 shares of its own $5 par common stock at $10 and subsequently sold 500 of the shares at $20.What is the amount of revenue realized from the sale?

(Multiple Choice)

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Question 26

A prior period adjustment should be reported as an adjustment to the retained earnings balance at the beginning of the period in which the adjustment was made.

(True/False)

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Question 27

The authorized stock of a corporation

(Multiple Choice)

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Question 28

Which one of the following would not be considered an advantage of the corporate form of organization?

(Multiple Choice)

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Question 29

The two main sources of stockholders' equity are investments contributed by stockholders and net income retained in the business.

(True/False)

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Question 30

The declaration of a stock dividend decreases a corporation's stockholders' equity and increases its liabilities.

(True/False)

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Question 31

The following transactions took place for the XYZ Corporation: November 12 - Declared a total cash dividend of $45,000 for stockholders of record November 20 payable on December 1.Record the journal entries required by these events. Briefly describe the significance of November 20.

(Essay)

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Question 32

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

(True/False)

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Question 33

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

(True/False)

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Question 34

The par value per share of common stock represents the

(Multiple Choice)

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Question 35

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: Determine the dividends in arrears for preferred stock for the second year.

(Multiple Choice)

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Question 36

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.

(Essay)

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Question 37

The charter of a corporation provides for the issuance of 100,000 shares of common stock.Assume that 40,000 shares were originally issued and 10,000 were subsequently reacquired.What is the number of shares outstanding?

(Multiple Choice)

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Question 38

The date on which a cash dividend becomes a binding legal obligation is on the

(Multiple Choice)

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Question 39

A company with 100,000 authorized shares of $4 par common stock issued 40,000 shares at $8.Subsequently,the company declared a 2% stock dividend on a date when the market price was $11 a share.What is the amount transferred from the retained earnings account to paid-in capital accounts as a result of the stock dividend?

(Multiple Choice)

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Question 40

Showing 21 - 40 of 193

Exam 12: Corporations: Organization, stock Transactions, and Dividends

On April 1,10,000 shares of $5 par common stock were issued at $22,and on April 7,5,000 shares of $50 par preferred stock were issued at $104.Journalize the entries for April 1 and 7.

Marcos Company,which had 35,000 shares of common stock outstanding,declared a 4-for-1 stock split.

The cost of treasury stock is deducted from total paid-in capital and retained earnings in determining total stockholders' equity.

A 10% stock dividend will increase the number of shares outstanding but the book value per share will decrease.

Retained earnings

A corporation purchased 1,000 shares of its own $5 par common stock at $10 and subsequently sold 500 of the shares at $20.What is the amount of revenue realized from the sale?

A prior period adjustment should be reported as an adjustment to the retained earnings balance at the beginning of the period in which the adjustment was made.

The authorized stock of a corporation

Which one of the following would not be considered an advantage of the corporate form of organization?

The two main sources of stockholders' equity are investments contributed by stockholders and net income retained in the business.

The declaration of a stock dividend decreases a corporation's stockholders' equity and increases its liabilities.

The following transactions took place for the XYZ Corporation: ​ November 12 - Declared a total cash dividend of $45,000 for stockholders of record November 20 payable on December 1.Record the journal entries required by these events. ​ Briefly describe the significance of November 20.

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

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

The par value per share of common stock represents the

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: ​ Determine the dividends in arrears for preferred stock for the second year.

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.

The charter of a corporation provides for the issuance of 100,000 shares of common stock.Assume that 40,000 shares were originally issued and 10,000 were subsequently reacquired.What is the number of shares outstanding?

The date on which a cash dividend becomes a binding legal obligation is on the

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Internal Control and Cash

Receivables

Long-Term Assets: Fixed and Intangible

Liabilities: Current,installment Notes,and Contingencies

Liabilities: Bonds Payable

Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Process Cost Systems

Activity-Based Costing

Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Evaluating Variances From Standard Costs

Evaluating Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

Lean Manufacturing and Activity Analysis

Filters

The following transactions took place for the XYZ Corporation: November 12 - Declared a total cash dividend of $45,000 for stockholders of record November 20 payable on December 1.Record the journal entries required by these events. Briefly describe the significance of November 20.

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: Determine the dividends in arrears for preferred stock for the second year.