Exam 13: Accounting for Corporations

On August 1, a corporation issued 15,000 shares of no-par common stock in exchange for a tract of land having a market value of $215,000. The common stock has a stated value of $10 per share. Prepare the general journal entry to record this transaction.

A company has 500,000 common shares authorized, 400,000 common shares issued, and 15,000 common shares in treasury stock at the current year-end. It paid $0.24 per share in cash dividends during the year. The year-end market price of the stock is $15. Calculate (1) the total dividends paid and (2) the dividend yield.

Retained earnings are not part of the stockholders' claims on the company's net assets.

A company's only treasury stock transactions for the current year follow: (1) 1,000 shares of its common stock were purchased on June 1 for $40,000; (2) On July 1 it reissued 500 of these shares at $45 per share; (3) On August 1 it reissued the 500 remaining treasury shares at $38 per share. 1) Prepare the journal entries required to record these transactions. 2) Calculate the balance in Paid-in Capital, Treasury Stock, on September 1 assuming its beginning-year balance is zero.

Preferred stock that the issuing corporation at its option may retire by paying a specified amount to the preferred stockholders is called:

What is treasury stock? How is the purchase and sale of treasury stock recorded?