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

A corporation has 50,000 shares of $28 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

Match the following stockholders equity concepts to the appropriate answer.

A corporation has 50,000 shares of $25 par value stock outstanding. If the corporation issues a 3-for-1 stock split, the number of shares outstanding after the split will be

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

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

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

The excess of issue price over par of common stock is termed a(n)

Before a stock dividend can be declared or paid, there must be sufficient cash.

Which of the following is not characteristic of a corporation?

Significant changes in stockholders' equity are reported in

When no-par common stock with a stated value is issued for cash, the common stock account is credited for an amount equal to the cash proceeds.

The declaration of a stock dividend decreases a corporation's stockholders' equity and increases its liabilities.

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 second year.

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 Sneed Corporation issues 10,000 shares of $50 par value preferred stock for cash at $75 per share. The entry to record the transaction will consist of a debit to Cash for $750,000 and a credit or credits to

Prepare entries to record the following:

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

Which of the following would appear as a prior-period adjustment?

Prepare entries to record the following:

Merritt Company acquired a building valued at $210,000 for property tax purposes in exchange for 12,000 shares of its $5 par common stock. The stock is widely traded and selling for $18 per share. At what amount should the building be recorded by Merritt Company?