Question 1

The excess of issue price over par of common stock is termed a(n)

Accepted Answer

A) discount 
B) income 
C) deficit 
D) premium 
A) discount 
B) income 
C) deficit 
D) premium D

Question 2

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 3

The dates of importance in connection with a cash dividend of $50,000 on a corporation's common stock are January 15,February 15,and March 15.Journalize the entries required on each date.

Accepted Answer

The answer of The dates of importance in connection with...

Question 4

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

Accepted Answer

(a)
 @#IMG-DLM& (b)

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

On April 2nd a corporation purchased for cash 5,000 shares of its own $10 par common stock at $16 a share.They sold 3,000 of the treasury shares at $19 a share on June 15th.The remaining 2,000 shares were sold on November 10th for $12 a share.

Accepted Answer

(a)April 2

Question 7

The declaration and issuance of a stock dividend does not affect the total amount of a corporation's assets,liabilities,or stockholders' equity.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

The Sneed Corporation issues 10,000 shares of $50 par value preferred stock for cash at $75 per share.The entry to record the transaction will consist of a debit to Cash for $750,000 and a credit or credits to

Accepted Answer

A) Preferred Stock for $750,000. 
B) Preferred stock for $500,000 and Paid-in Capital in Excess of Par Value-Preferred Stock for $250,000. 
C) Preferred Stock for $500,000 and Retained Earnings for $250,000. 
D) Paid-in Capital from Preferred Stock for $750,000. 
A) Preferred Stock for $750,000. 
B) Preferred stock for $500,000 and Paid-in Capital in Excess of Par Value-Preferred Stock for $250,000. 
C) Preferred Stock for $500,000 and Retained Earnings for $250,000. 
D) Paid-in Capital from Preferred Stock for $750,000.

Question 10

One of the main disadvantages of the corporate form is the

Accepted Answer

A) professional management 
B) double taxation of dividends 
C) charter 
D) corporation must issue stock 
A) professional management 
B) double taxation of dividends 
C) charter 
D) corporation must issue stock

Question 11

Preferred stockholders must receive their current year dividends before the common stockholders can receive any dividends.

Accepted Answer

A) True 
 B)False

Question 12

Stockholders' equity

Accepted Answer

A) is usually equal to cash on hand 
B) includes paid-in capital and liabilities 
C) includes retained earnings and paid-in capital 
D) is shown on the income statement 
A) is usually equal to cash on hand 
B) includes paid-in capital and liabilities 
C) includes retained earnings and paid-in capital 
D) is shown on the income statement

Question 13

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?

Accepted Answer

A) $3,200 
B) $6,400 
C) $4,800 
D) $8,800 
A) $3,200 
B) $6,400 
C) $4,800 
D) $8,800

Question 14

A corporation purchases 10,000 shares of its own $10 par common stock for $35 per share,recording it at cost.What will be the effect on total stockholders' equity?

Accepted Answer

A) increase,$100,000 
B) increase,$350,000 
C) decrease,$100,000 
D) decrease,$350,000 
A) increase,$100,000 
B) increase,$350,000 
C) decrease,$100,000 
D) decrease,$350,000

Question 15

The primary purpose of a stock split is to

Accepted Answer

A) increase paid-in capital 
B) reduce the market price of the stock per share 
C) increase the market price of the stock per share 
D) increase retained earnings 
A) increase paid-in capital 
B) reduce the market price of the stock per share 
C) increase the market price of the stock per share 
D) increase retained earnings

Question 16

When no-par stock is issued,the Common Stock account is credited for the selling price of the stock issued.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

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?

Accepted Answer

A) 10,000 
B) 40,000 
C) 30,000 
D) 50,000 
A) 10,000 
B) 40,000 
C) 30,000 
D) 50,000

Question 20

Which of the following is not true of a corporation?

Accepted Answer

A) It may enter into binding legal contracts in its own name. 
B) It may sue and be sued. 
C) The acts of its owners bind the corporation. 
D) It may buy,own,and sell property. 
A) It may enter into binding legal contracts in its own name. 
B) It may sue and be sued. 
C) The acts of its owners bind the corporation. 
D) It may buy,own,and sell property.

The excess of issue price over par of common stock is termed a(n)

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

The dates of importance in connection with a cash dividend of $50,000 on a corporation's common stock are January 15,February 15,and March 15.Journalize the entries required on each date.

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

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

On April 2nd a corporation purchased for cash 5,000 shares of its own $10 par common stock at $16 a share.They sold 3,000 of the treasury shares at $19 a share on June 15th.The remaining 2,000 shares were sold on November 10th for $12 a share.

The declaration and issuance of a stock dividend does not affect the total amount of a corporation's assets,liabilities,or stockholders' equity.

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

The Sneed Corporation issues 10,000 shares of $50 par value preferred stock for cash at $75 per share.The entry to record the transaction will consist of a debit to Cash for $750,000 and a credit or credits to

One of the main disadvantages of the corporate form is the

Preferred stockholders must receive their current year dividends before the common stockholders can receive any dividends.

Stockholders' equity

A corporation purchases 10,000 shares of its own $10 par common stock for $35 per share,recording it at cost.What will be the effect on total stockholders' equity?

The primary purpose of a stock split is to

When no-par stock is issued,the Common Stock account is credited for the selling price of the stock issued.

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

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

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?

Which of the following is not true of a corporation?

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley, internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

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Exam 11: Corporations: Organization, stock Transactions, and Dividends

The excess of issue price over par of common stock is termed a(n)

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

The dates of importance in connection with a cash dividend of $50,000 on a corporation's common stock are January 15,February 15,and March 15.Journalize the entries required on each date.

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

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

On April 2nd a corporation purchased for cash 5,000 shares of its own $10 par common stock at $16 a share.They sold 3,000 of the treasury shares at $19 a share on June 15th.The remaining 2,000 shares were sold on November 10th for $12 a share.

The declaration and issuance of a stock dividend does not affect the total amount of a corporation's assets,liabilities,or stockholders' equity.

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

The Sneed Corporation issues 10,000 shares of $50 par value preferred stock for cash at $75 per share.The entry to record the transaction will consist of a debit to Cash for $750,000 and a credit or credits to

One of the main disadvantages of the corporate form is the

Preferred stockholders must receive their current year dividends before the common stockholders can receive any dividends.

Stockholders' equity

A corporation purchases 10,000 shares of its own $10 par common stock for $35 per share,recording it at cost.What will be the effect on total stockholders' equity?

The primary purpose of a stock split is to

When no-par stock is issued,the Common Stock account is credited for the selling price of the stock issued.

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

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

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?

Which of the following is not true of a corporation?

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley, internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

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