Exam 11: Stockholders Equity: Paid-In Capital

Treasury stock should most often be recorded at:

The financial statements of a corporation that failed during the current year to pay any dividends on its cumulative preferred stock should:

If Amelia did not pay a dividend for the last two years,but declared a $250,000 dividend this year,how much will the common stockholders receive?

If a corporation has only common stock outstanding,which of the following constitutes legal capital at a particular date?

Which of the following apply to closely held corporations?

The payment of cash dividends to common stockholders is classified as a financing activity on the statement of cash flows whereas payment of a cash dividend to preferred stockholders is classified as an investing activity.

A 2-for-1 stock split:

Prepare the stockholders' equity section from transaction data. Shown below is the stockholders' equity section of Farrell Corporation's balance sheet at December 31,2017: In 2018,the following events occurred: Farrell Corporation issued 1,000 shares of $3 par common stock in exchange for land.Although several real estate appraisers disagree on the value of the land,Farrell 's stock is currently selling on a stock exchange for $32 per share. Farrell Corporation issued 3,000 shares of 5% cumulative preferred stock,$100 par value,for $108 per share. The board of directors declared a dividend of $1 per share on the common stock. Farrell's net income for 2018 is $375,000. Instructions: Complete in good form the stockholders' equity section of a balance sheet prepared for Farrell Corporation at December 31,2018:

[The following information applies to the questions displayed below.] Shown below is information relating to the stockholders' equity of Grant Corporation at December 31,2018: Dividends have been declared and paid for 2018. -The book value per share of common stock is:

To be consistent with international standards,the FASB has changed reporting requirements for redeemable preferred stock to require it to be reported in the equity section.

The number of shares a corporation may issue is specified in the articles of incorporation and approved by the Securities and Exchange Commission.

The par value of the common stock of a large listed corporation:

Zigma Corporation is authorized to issue 2,000,000 shares of $4 par value capital stock.The corporation issued half the stock for cash at $8 per share,earned $336,000 during the first three months of operation,and declared a cash dividend of $60,000.The total paid-in capital of Zigma Corporation after three months of operation is:

A primary disadvantage of the corporate form of organization is:

All of the following are activities seen in "pump-and-dump" schemes except:

Which of the following would usually be the greatest amount?

Thurman Corporation issued 450,000 shares of $0.50 par value capital stock at its date of incorporation for cash at a price of $4 per share.During the first year of operations,the company earned $100,000 and declared a dividend of $40,000.At the end of this first year of operations,the balance of the Common Stock account is:

Authorization of a stock issue creates an asset on the books of the issuing corporation.

Factors affecting the market price of stocks (a)Murdock Corporation has outstanding several different stock issues.For each of the types of stock listed below,briefly describe a situation or circumstance that would cause the market price of that type of stock to increase. Preferred stock Common stock Convertible preferred stock (b)How would the increase in market value of any of Murdock's stock be reflected in Murdock's financial statements?

When no-par stock is issued: