Exam 13: Accounting for Corporations

Use the following information to answer the question below. The following accounts appear in the ledger of Pepper Corporation on December 31,20x5 A balance sheet prepared on December 31,20x5 ,would report total contributed capital of

The number of shares of issued stock equals

The price/earnings (P/E)ratio is measured in terms of

The following facts pertain to Quail Corporation: On the basis of these facts,compute the amount of net income (loss)for Quail Corporation for 20x5.

Dividends in arrears on cumulative preferred stock are not paid until after dividends are paid on common stock.

The following facts pertain to Alameda Corporation for 20x5: Based on the above facts,net income for 20x5 for Alameda Corporation amounted to

An advantage of the corporate form of business is

Callable preferred stock is preferred stock that may be redeemed or retired at the option of the issuing corporation.

In computing book value per share of common stock,common stock distributable is included in the divisor.

On the balance sheet,treasury stock owned by the company is classified properly as

Start-up and organization costs should be expensed as incurred.

The declaration of cash dividends will increase the book value per share of common stock.

Cash dividends become a liability of a corporation when the stock goes ex-dividend.

Which of the following items will not be disclosed on a statement of stockholders' equity?

The par value of stock is an arbitrary amount assigned to each share of stock.

If a corporation issues par value common stock and the proceeds are less than par value,the Common Stock account is credited for the par value.

The entry to record the retirement of treasury stock will include a debit to Common Stock for the par value of the retired shares.

Which of the following classifications represents the largest number of shares?

When common stock with a par value is sold for a price that exceeds par value,the Common Stock account is credited for the cash proceeds received from the sale of the shares.

On January 1,20x5,Dove Valley Corporation had 100,000 shares of $10 par value common stock issued and outstanding.All 100,000 shares had been issued in a prior period at $30 per share.On February 1,20x5,Dove Valley purchased 4,000 shares of treasury stock for $36 per share and later sold the treasury shares for $40 per share on March 2,20x5.The entry to record the sale of the treasury shares on March 2,20x5,is :