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

Samuels,Inc.reported net income for 2011 is $105,000.During 2011 the company had 5,000 shares of $100 par,5% preferred stock and 20,000 of $5 par common stock outstanding.Samuels' earnings per share for 2011 is

If 20,000 shares are authorized,15,000 shares are issued,and 500 shares are held as treasury stock,a cash dividend of $1 per share would amount to $15,000.

A corporation,which had 18,000 shares of common stock outstanding,declared a 3-for-1 stock split.

Treasury stock should be reported in the financial statements of a corporation as a(n)

What is the total stockholders' equity based on the following data?

Sabas Company has 40,000 shares of $100 par,1% preferred stock and 100,000 shares of $50 par common stock.The following amounts were distributed as dividends:

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

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.

The amount of capital paid in by the stockholders of the corporation is called legal capital.

If a company has preferred stock,the preferred stock dividend is added to net income when computing earnings per common share.

Under the cost method,when treasury stock is purchased by the corporation,the par value and the price at which the stock was originally issued are important.

Journalize the following selected transactions completed during the current fiscal year:

At December 31st,the Jeter Company had the following ending balances; Retained Earnings - $100,000 Preferred Stock ($100 par,7% cumulative,10,000 authorized,5,000 issued and outstanding)- 500,000 Treasury stock - $35,000 Additional paid in capital - common stock - 400,000 Additional paid in capital - preferred stock - 50,000 Common stock ($5.00 par value,100,000 shares authorized,60,000 issued)- 300,000 Prepare the stockholders equity section of the balance sheet in good form with all of the required disclosures..

If common stock is issued for an amount greater than par value,the excess should be credited to

Miriah Inc.has 10,000 shares of 5%,$100 par value,cumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31,2014.What is the annual dividend on the preferred stock?

On January 1,2011 a company had the following data: - issued 10,000 shares of $2.00 par value common stock for $12.00 per share - issued 3,000 shares of $50 par value 6% cumulative preferred stock for $70 per share - purchased 1,000 shares of previously issued common stock for $15.00 per share

Prepare entries to record the following:

Carmen Company a publicly traded company with preferred and common stock issued.As of January 1st,it had 50,000 shares of $100 par,2% preferred stock outstanding and 250,000 shares of $10 par common stock outstanding. (a)On January 31st,the Board of Directors issues a requirement to purchase 5,000 shares of its common stock at market price.The shares are purchased at a market price of $22 per share.Journalize the purchase utilizing the cost concept. (b)On March 15th,Carmen declares a dividend on preferred stock of $2.75 per share.The date of record is March 25th and the date of payment is March 31st.Journalize these events. (c)On December 1st,Carmen declares a cash dividend on common stock of $0.12 per share.The date of record is December 15th and the date of payment is December 21st.Journalize these events. (d)On December 27th the board orders that 2,500 shares of treasury stock be sold.The sale price is $25 per share.Journalize this event.

On May 1,10,000 shares of $10 par common stock were issued at $30,and on May 7,5,000 shares of $50 par preferred stock were issued at $111.Journalize the entries for May 1 and May 7.

Nexis Corp.issues 1,000 shares of $15 par value common stock at $22 per share.When the transaction is recorded,credits are made to: