Exam 11: Stockholders Equity: Paid-In Capital

Which of the following is not a right of stockholders?

The board of directors' primary functions include all of the following except:

When a state authorizes the sale of stock to stockholders, the corporation will credit Retained Earnings for the par value of the stock.

The directors of a corporation:

Which of the following is not a characteristic of most preferred stocks?

Seville Corporation has net assets of $2,072,000 and paid-in capital of $700,000. The only stock issue consists of 74,000 outstanding shares of common stock. From this information, it can be deduced that the company has:

The balance in Retained Earnings at the beginning of the year was $650,000, and there were no dividends in arrears. Net income for 2010 was $475,000. What was the amount of dividend declared on each share of common stock during 2010? $_____ per share

On January 1, 2011, Aili Corporation issued 60,000 shares of its total 200,000 authorized shares of $4 par value common stock for $18 per share. On December 31, 2011, Aili Corporation's common stock is trading at $32 per share. Assume Aili Corporation decides to issue an additional 10,000 shares of its common stock on December 31, 2011. How will the above increase in value affect Jupiter?

The balance in Retained Earnings at the beginning of the year was $2,710,000, and there were no dividends in arrears. Net income for 2009 was $2,250,000. What was the amount of dividend declared on each share of common stock during 2009?

Tri-State Electric is a profitable utility company that has increased its dividend to common stockholders every year for 42 consecutive years. Which of the following is least likely to affect the market price of the company's preferred stock by a significant amount?

Refer to the information above. If Vision paid a total of $55,800 in dividends, how much would each common stockholder receive for each share of stock owned? (Assume there are no dividends in arrears)

Which of the following individuals has the most power to influence corporate policy on a long-term basis?

If preferred stock is convertible, it is so at the option of the:

Lewis Corporation issued 125,000 shares of $5 par value capital stock at date of incorporation for cash at a price of $9 per share. During the first year of operations, the company earned $140,000 and declared a dividend of $100,000. At the end of this first year of operations, the balance of the Capital Stock account is:

Refer to the information above. Assuming Juniper Corporation did not issue any more common stock in 2009, how does the increase in value of its outstanding stock affect Juniper?

A 2-for-1 stock split will have what effect upon the following items?

Prepare the stockholders' equity section from transaction data Shown below is the stockholders' equity section of Jone's balance sheet at December 31, 2009. In 2009, the following events occurred: Jones issued 2,000 shares of $5 par value common stock in exchange for legal services relating to the formation of the corporation; value of these services was set at $19,500. Jones issued 8,000 of its 10,000 authorized shares of $8 cumulative preferred stock, $100 par value, for $108 per share. The board of directors declared and paid dividends of $8 per share to preferred stockholders and 50 cents per share to common stockholders. The company's net income for 2009 is $450,000. Instructions: Complete in good form the stockholders' equity section of a balance sheet prepared for Jones at December 31, 2009.

Paid-in-capital includes donated capital.

Refer to the information above. Total stockholders' equity is:

Perez Corporation has 100,000 shares of $1 par value common stock and 20,000 shares of 8% cumulative preferred stock, $100 par value, outstanding. The balance in Retained Earnings at the beginning of the year was $1,600,000, and one year's dividends were in arrears. Net income for the current year was $870,000. If Perez Corporation paid a dividend of $2 per share on its common stock, what is the balance in Retained Earnings at the end of the year?