Question 1

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 2

A corporation has 60,000 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 number of shares outstanding will be:

Accepted Answer

A)  60,000 
B)  10,000 
C)  300,000 
D)  30,000 
A)  60,000 
B)  10,000 
C)  300,000 
D)  30,000 C

Question 3

All of the following are normally found in a corporation's stockholders' equity section except

Accepted Answer

A)  Common Stock 
B)  Paid-In Capital in Excess of Par 
C)  Dividends in Arrears 
D)  Retained Earnings 
A)  Common Stock 
B)  Paid-In Capital in Excess of Par 
C)  Dividends in Arrears 
D)  Retained Earnings C

Question 4

Under the Internal Revenue Code, corporations are required to pay federal income taxes.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A)  Treasury Stock Receivable 
B)  Premium on Capital Stock 
C)  Paid-In Capital from Sale of Treasury Stock 
D)  Income from Sale of Treasury Stock 
A)  Treasury Stock Receivable 
B)  Premium on Capital Stock 
C)  Paid-In Capital from Sale of Treasury Stock 
D)  Income from Sale of Treasury Stock

Question 6

On April 1, 10,000 shares of $5 par common stock were issued at $22, and on April 7, 5,000 shares of $50 par preferred stock were issued at $104. Journalize the entries for April 1 and 7.

Accepted Answer

The answer of On April 1, 10,000 shares of $5...

Question 7

A deficit in Retained Earnings is reported in the stockholders' equity section of the balance sheet.

Accepted Answer

A) True 
 B)False

Question 8

When Bayou Corporation was formed on January 1, 20xx, the corporate charter provided for 100,000 share of $10 par value common stock. The following transaction was among those engaged in by the corporation during its first month of operation: The corporation issued 9,000 shares of stock at a price of $23 per share. The entry to record the above transaction would include a

Accepted Answer

A)  debit to Cash for $90,000 
B)  credit to Common Stock for $207,000 
C)  credit to Paid in Capital in Excess of Par for $117,000 
D)  debit to Common Stock for $90,000 
A)  debit to Cash for $90,000 
B)  credit to Common Stock for $207,000 
C)  credit to Paid in Capital in Excess of Par for $117,000 
D)  debit to Common Stock for $90,000

Question 9

When a stock dividend is declared, which of the following accounts is credited?

Accepted Answer

A)  Common Sock 
B)  Dividend Payable 
C)  Stock Dividends Distributable 
D)  Retained Earnings 
A)  Common Sock 
B)  Dividend Payable 
C)  Stock Dividends Distributable 
D)  Retained Earnings

Question 10

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

Accepted Answer

The answer of Journalize the following selected transactions completed during...

Question 11

Which statement below is not a reason for a corporation to buy back its own stock.

Accepted Answer

A)  resale to employees 
B)  bonus to employees 
C)  for supporting the market price of the stock 
D)  to increase the shares outstanding 
A)  resale to employees 
B)  bonus to employees 
C)  for supporting the market price of the stock 
D)  to increase the shares outstanding

Question 12

Cash dividends are normally paid on shares of treasury stock.

Accepted Answer

A) True 
 B)False

Question 13

While some businesses have been granted charters under state laws, most businesses receive their charters under federal laws.

Accepted Answer

A) True 
 B)False

Question 14

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:

Accepted Answer

A)  Common Stock $15,000 and Paid-in Capital in Excess of Par Value $7,000. 
B)  Common Stock $22,000 and Retained Earnings $15,000. 
C)  Common Stock $7,000 and Paid-in Capital in Excess of Stated Value $15,000. 
D)  Common Stock $22,000. 
A)  Common Stock $15,000 and Paid-in Capital in Excess of Par Value $7,000. 
B)  Common Stock $22,000 and Retained Earnings $15,000. 
C)  Common Stock $7,000 and Paid-in Capital in Excess of Stated Value $15,000. 
D)  Common Stock $22,000.

Question 15

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.

Accepted Answer

A) True 
 B)False

Question 16

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?

Accepted Answer

A)  $50 per share 
B)  $50,000 in total 
C)  $10,000 in total 
D)  $0.50 per share 
A)  $50 per share 
B)  $50,000 in total 
C)  $10,000 in total 
D)  $0.50 per share

Question 17

The par value per share of common stock represents

Accepted Answer

A)  the minimum selling price of the stock established by the articles of incorporation. 
B)  the minimum amount the stockholder will receive when the corporation is liquidated 
C)  an arbitrary amount established in the articles of incorporation 
D)  the amount of dividends per share to be received each year 
A)  the minimum selling price of the stock established by the articles of incorporation. 
B)  the minimum amount the stockholder will receive when the corporation is liquidated 
C)  an arbitrary amount established in the articles of incorporation 
D)  the amount of dividends per share to be received each year

Question 18

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.

Accepted Answer

The answer of On May 1, 10,000 shares of $10...

Question 19

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.

Accepted Answer

A) True 
 B)False

Question 20

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.

Accepted Answer

The answer of Sabas Company has 20,000 shares of $100...

Exam 13: Corporations: Organization, Stock Transactions, and Dividends

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

A corporation has 60,000 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 number of shares outstanding will be:

All of the following are normally found in a corporation's stockholders' equity section except

Under the Internal Revenue Code, corporations are required to pay federal income taxes.

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

On April 1, 10,000 shares of $5 par common stock were issued at $22, and on April 7, 5,000 shares of $50 par preferred stock were issued at $104. Journalize the entries for April 1 and 7.

A deficit in Retained Earnings is reported in the stockholders' equity section of the balance sheet.

When a stock dividend is declared, which of the following accounts is credited?

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

Which statement below is not a reason for a corporation to buy back its own stock.

Cash dividends are normally paid on shares of treasury stock.

While some businesses have been granted charters under state laws, most businesses receive their charters under federal laws.

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:

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.

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?

The par value per share of common stock represents

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.

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.

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.

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting Systems

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley, Internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Accounting for Partnerships and Limited Liability Companies

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting Concepts and Principles

Job Order Costing

Process Cost Systems

Cost Behavior and Cost-Volume-Profit Analysis

Budgeting

Performance Evaluation Using Variances From Standard Costs

Performance Evaluation for Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

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