Question 1

Prepare entries to record the following selected transactions completed during the current fiscal year:

Accepted Answer

The answer of Prepare entries to record the following selected...

Question 2

Match the following stockholders' equity concepts to the appropriate term (a-h).​
-Account used when shares are issued for an amount greater than par value

Accepted Answer

A) cash dividend 
B) date of record 
C) Stock Dividends Distributable 
D) date of declaration 
E) treasury stock
F)preferred stock
G)date of payment
H)Paid-In Capital in Excess of Par
   
A) cash dividend 
B) date of record 
C) Stock Dividends Distributable 
D) date of declaration 
E) treasury stock
F)preferred stock
G)date of payment
H)Paid-In Capital in Excess of Par

Question 3

On May 10,a company issued for cash 1,500 shares of no-par common stock (with a stated value of $2)at $14,and on May 15,it issued for cash 2,000 shares of $15 par preferred stock at $58.
​
Journalize the entries for May 10 and 15,assuming that the common stock is to be credited with the stated value.

Accepted Answer

The answer of On May 10,a company issued for cash...

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

A corporation has 10,000 shares of $100 par stock outstanding.If the corporation issues a 5-for-1 stock split,the number of shares outstanding after the split will be 40,000.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

One of the main disadvantages of the corporate form is the

Accepted Answer

A)  inability to raise large amounts of capital 
B)  double taxation of dividends 
C)  charter 
D)  requirement to stock 
A)  inability to raise large amounts of capital 
B)  double taxation of dividends 
C)  charter 
D)  requirement to stock

Question 8

A corporation has 50,000 shares of $25 par stock outstanding.If the corporation issues a 3-for-1 stock split,the number of shares outstanding after the split will be

Accepted Answer

A)  150,000 shares 
B)  50,000 shares 
C)  100,000 shares 
D)  16,666 shares 
A)  150,000 shares 
B)  50,000 shares 
C)  100,000 shares 
D)  16,666 shares

Question 9

Solar Company has 600,000 shares of $75 par common stock outstanding.On February 13,Solar declared a 3% stock dividend to be issued on April 30 to stockholders of record on March 14.The market price of the stock was $90 per share on February 13.
​
Journalize the entries required on February 13,March 14,and April 30.

Accepted Answer

The answer of Solar Company has 600,000 shares of $75...

Question 10

On April 10,Maranda Corporation issued for cash 11,000 shares of no-par common stock at $25.On May 5,Maranda issued at par 1,000 shares of 4%,$50 par preferred stock for cash.On May 25,Maranda issued for cash 15,000 shares of 4%,$50 par preferred stock at $55.
​
Journalize the entries to record the April 10,May 5,and May 25 transactions.

Accepted Answer

The answer of On April 10,Maranda Corporation issued for cash...

Question 11

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 12

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

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A)  The financial loss that a stockholder may suffer from owning stock in a public company is limited. 
B)  Cash dividends paid by a corporation are deductible as expenses by the corporation. 
C)  A corporation can own property in its name. 
D)  Corporations are required to file federal income tax returns. 
A)  The financial loss that a stockholder may suffer from owning stock in a public company is limited. 
B)  Cash dividends paid by a corporation are deductible as expenses by the corporation. 
C)  A corporation can own property in its name. 
D)  Corporations are required to file federal income tax returns.

Question 14

Match each of the following stockholders' equity concepts to the most appropriate term (a-h).
-The dollar amount assigned to each share of stock

Accepted Answer

A) authorized shares 
B) issued shares 
C) outstanding shares 
D) par value 
E) common stock
F)preferred stock
G)Paid-In Capital in Excess of Par
H)transfer agent 
A) authorized shares 
B) issued shares 
C) outstanding shares 
D) par value 
E) common stock
F)preferred stock
G)Paid-In Capital in Excess of Par
H)transfer agent

Question 15

​In which section of the financial statements would Paid-In Capital from Sale of Treasury Stock be reported?

Accepted Answer

A)  ​other expense on income statement 
B)  ​intangible asset on the balance sheet 
C)  ​stockholders' equity on balance sheet 
D)  ​other income on income statement 
A)  ​other expense on income statement 
B)  ​intangible asset on the balance sheet 
C)  ​stockholders' equity on balance sheet 
D)  ​other income on income statement

Question 16

Retained Earnings represents past net income less past dividends,therefore any balance in this account would be listed on the income statement.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A)  the number of shares of common stock outstanding 
B)  the number of shares of common stock issued 
C)  the number of shares of common stock authorized 
D)  all of these 
A)  the number of shares of common stock outstanding 
B)  the number of shares of common stock issued 
C)  the number of shares of common stock authorized 
D)  all of these

Question 18

The number of shares of outstanding stock is equal to the number of shares authorized minus the number of shares issued.

Accepted Answer

A) True 
 B)False

Question 19

Prepare entries to record the following:

Accepted Answer

The answer of Prepare entries to record the following:
 ...

Question 20

Match each of the following stockholders' equity concepts to the most appropriate term (a-h).
-The maximum number of shares a company can issue to shareholders

Accepted Answer

A) authorized shares 
B) issued shares 
C) outstanding shares 
D) par value 
E) common stock
F)preferred stock
G)Paid-In Capital in Excess of Par
H)transfer agent 
A) authorized shares 
B) issued shares 
C) outstanding shares 
D) par value 
E) common stock
F)preferred stock
G)Paid-In Capital in Excess of Par
H)transfer agent

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

Prepare entries to record the following selected transactions completed during the current fiscal year:

Match the following stockholders' equity concepts to the appropriate term (a-h).​ -Account used when shares are issued for an amount greater than par value

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

A corporation has 10,000 shares of $100 par stock outstanding.If the corporation issues a 5-for-1 stock split,the number of shares outstanding after the split will be 40,000.

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

One of the main disadvantages of the corporate form is the

A corporation has 50,000 shares of $25 par stock outstanding.If the corporation issues a 3-for-1 stock split,the number of shares outstanding after the split will be

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

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

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

Match each of the following stockholders' equity concepts to the most appropriate term (a-h). -The dollar amount assigned to each share of stock

​In which section of the financial statements would Paid-In Capital from Sale of Treasury Stock be reported?

Retained Earnings represents past net income less past dividends,therefore any balance in this account would be listed on the income statement.

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

The number of shares of outstanding stock is equal to the number of shares authorized minus the number of shares issued.

Prepare entries to record the following:

Match each of the following stockholders' equity concepts to the most appropriate term (a-h). -The maximum number of shares a company can issue to shareholders

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

Match the following stockholders' equity concepts to the appropriate term (a-h). -Account used when shares are issued for an amount greater than par value

In which section of the financial statements would Paid-In Capital from Sale of Treasury Stock be reported?