Exam 13: Corporations

On March 31,2017,Park Place,Inc.shows the following data on its balance sheet: Assume that Park Place sells 1,700 shares of treasury stock at $45 per share.What is total stockholders' equity after this transaction?

Companies can report a negative amount in retained earnings.

McDaniel Corporation had net income for 2016 of $72,000.McDaniel had 6,000 shares of common stock outstanding at the beginning of the year and 26,000 shares of common stock outstanding at the end of the year.There were 8,000 shares of preferred stock outstanding all year.During 2016,McDaniel declared and paid preferred dividends of $19,000.On December 31,2106,the market price of McDaniel's common stock is $48 per share and the market price of its preferred stock is $69 per share.What is McDaniel's price/earnings ratio? (Round any intermediate calculations and your final answer to the nearest cent. )

Which of the following is a true statement regarding the effect of a stock split and stock dividend on total assets or liabilities?

When a corporation issues stock at par value,the Cash account is debited and the Common Stock account is credited for an amount equal to the number of shares issued times the par value per share.

William Smith is a sole proprietor of a successful business.He is interested in incorporating to protect his personal assets.Which advantage of incorporation is most applicable? What are other advantages of organizing as a corporate entity?

Which of the following is a basic right of stockholders?

When a corporation issues no-par stock,it debits the asset received and credits the stock account.

Rimsone,Inc.purchases 8,500 shares of the company's own $6 par common stock for $8 per share.Journalize the transaction.

Which of the following is the correct description of dividends in arrears?

When a 5% stock dividend is declared,which account is debited?

Most corporations set par value low and issue common stock at a premium.

A corporation originally issued $9 par value common stock for $14 per share.It purchased the stock for $15 per share.Which of the following is included in the entry to record the sale of 60 shares of treasury stock for $19 per share?

Green Apron,Inc.had the following transactions in 2017,its first year of operations: • Issued 35,000 shares of common stock.Stock has par value of $1.00 per share and was issued at $23.00 per share. • Earned net income of $77,000. • Paid no dividends. At the end of 2017,what is the total amount of paid-in capital?

List the four basic rights of stockholders.

Maywood,Inc.has 13,000 shares of common stock outstanding.A stockholder has 500 shares.If the company distributes a 23% stock dividend,the stockholder now holds ________ shares of Maywood stock.

Preferred stockholders ________.

Greg's Grocery,Inc.has 48,000 shares of common stock outstanding and 5,000 shares of preferred stock outstanding.The common stock is $5.00 par value;the preferred stock is 8% noncumulative with a $100.00 par value.On October 15,2017,the company declares a total dividend payment of $57,000.What is the amount of dividend that will be paid for each share of common stock? (Round your answer to the nearest cent. )

On November 1,2017,Oster,Inc.declared a dividend of $5.00 per share.Oster,Inc.has 30,000 shares of common stock outstanding and no preferred stock.Which of the following is the journal entry needed to record the declaration of the dividend?

Which of the following statements is true of a corporation?