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

The charter of a corporation provides for the issuance of 100,000 shares of common stock.Assume that 60,000 shares were originally issued and 10,000 were subsequently reacquired.What is the amount of cash dividends to be paid if a $2 per share dividend is declared?

Prepare entries to record the following:

A corporation has 12,000 shares of $20 par value stock outstanding that has a current market value of $150.If the corporation issues a 4-for-1 stock split,the market value of the stock will fall to approximately $50.

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

A company with 100,000 authorized shares of $4 par common stock issued 50,000 shares at $9.Subsequently,the company declared a 2% stock dividend on a date when the market price was $10 a share.The effect of the declaration and issuance of the stock dividend is to

The excess of sales price of treasury stock over its cost should be credited to

Characteristics of a corporation include

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

Which of the following is not characteristic of a corporation?

Which of the following is not a right possessed by common stockholders of a corporation?

A 10% stock dividend will increase the number of shares outstanding but the book value per share will decrease.

A disadvantage of the corporate form of business entity is

Significant changes in stockholders' equity are reported in

If the dividend amount of preferred stock,$50 par value,is quoted as 8%,then the dividends per share would be $4.

The main source of paid-in-capital is from issuing stock.

Which of the following is not classified as paid-in capital on the balance sheet?

Retained earnings

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.

The two main sources of stockholders' equity are investments contributed by stockholders and net income retained in the business.

When common stock is issued in exchange for land,the land should be recorded in the accounts at the par amount of the stock issued.