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

Sabas Company has 20,000 shares of $100 par,2% cumulative preferred stock and 100,000 shares of $50 par common stock.The following amounts were distributed as dividends: Determine the dividends per share for preferred and common stock for the first year.

The number of shares of outstanding stock is equal to the number of shares authorized minus the number of shares issued.

The price at which a stock can be sold depends upon a number of factors.Which statement below is not one of those factors?

The par value of stock is an arbitrary per share amount defined in many states as legal capital.

Vincent Corporation has 100,000 share of $100 par common stock outstanding.On June 30,Vincent Corporation declared a 5% stock dividend to be issued on July 30 to stockholders of record July 15.The market price of the stock was $132 a share on June 30.Journalize the entries required on June 30,July 15 and July 30.

How is treasury stock shown on the balance sheet?

The declaration of a cash dividend decreases a corporation's stockholders equity and decreases its assets.

Under the corporate form of business organization

Which of the following is not a prerequisite to paying a cash dividend?

A corporation has 50,000 shares of $25 par value stock outstanding that has a current market value of $120.If the corporation issues a 5-for-1 stock split,the par value of the stock after the split will be:

The state charter allows a corporation to issue only a certain number of shares of each class of stock.This amount of stock is called

The primary purpose of a stock split is to reduce the number of shares outstanding in order to encourage more investors to enter the market for the company's shares.

The entry to record the issuance of common stock at a price above par includes a debit to

Twenty percent of all businesses in the United States are corporations and they account for 80% of the total business dollars generated.

If 100 shares of treasury stock were purchased for $50 per share and then sold at $60 per share,$1,000 of income is reported in the income statement.

Sabas Company has 20,000 shares of $100 par,1% non-cumulative preferred stock and 100,000 shares of $50 par common stock.The following amounts were distributed as dividends: Determine the dividends per share for preferred and common stock for each year.

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

A stock split results in a transfer at market value from retained earnings to paid-in capital.

When a corporation completes a 3-for-1 stock split

Treasury stock that had been purchased for $5,600 last month was reissued this month for $8,500.The journal entry to record the reissuance would include a credit to