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

On February 1,Marine Company reacquired 7,500 shares of its common stock at $30 per share.On March 15,Marine sold 4,500 of the reacquired shares at $34 per share.On June 2,Marine sold the remaining shares at $28 per share. ​ Journalize the transaction of February 1,March 15,and June 2.

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.

If a corporation is liquidated,preferred stockholders are paid before the creditors and before the common stockholders.

The cumulative effect of the declaration and payment of a cash dividend on a company's financial statements is to

A corporation is a separate entity for accounting purposes but not for legal purposes.

The issuance of common stock affects both paid-in capital and retained earnings.

A sale of treasury stock may result in a decrease in paid-in capital.All decreases should be charged to Paid-In Capital from Sale of Treasury Stock.

When a corporation issues stock at a premium,it reports the premium as an other income item on the income statement.

Match the following stockholders' equity concepts to the appropriate term (a-h).​ -Cash distribution of a company's earnings to stockholders

If 50,000 shares are authorized,41,000 shares are issued,and 2,000 shares are reacquired,the number of outstanding shares is 43,000.

A disadvantage of the corporate form of business entity is

Which of the following statements is not true about a 2-for-1 split?

The Dayton Corporation began the current year with a retained earnings balance of $32,000.During the year,the company corrected an error made in the prior year,which was a failure to record a depreciation expense of $3,000 on equipment.Also,during the current year,the company earned net income of $12,000 and declared cash dividends of $7,000.Compute the year-end retained earnings balance.

A company with 100,000 authorized shares of $4 par common stock issued 40,000 shares at $8.Subsequently,the company declared a 4% stock dividend on a date when the market price was $12 a share.What is the amount transferred from the retained earnings account to paid-in capital accounts as a result of the stock dividend?

Those most responsible for the major policy decisions of a corporation are the

Which of the following is not true of a corporation?

The two main sources of stockholders' equity are​

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.

A company has 10,000 shares of $10 par common stock outstanding.Prepare entries to record the following:

Organizational expenses are classified as intangible assets on the balance sheet.