Question 1

Using the following accounts:
  Indicate the account(s)to be debited and credited to record the following transactions.
-Exchanged common stock for a building and land when the stock was selling at a discount.
Debit ________ & ________ & ________ Credit ________ & ________ & ________

Accepted Answer

Debit 4 & 5 & 12, Credit 8

Question 2

Madison Corporation is authorized to issue 3,000 shares of common stock. Record the journal entry for each of the following independent situations. Assume Madison issues 750 shares at $15 on August 31.
a)Common stock has a $10 per share par value.
b)Common stock has no par value and no stated amount.
c)Common stock is no-par stock with a stated value of $8 per share.

Accepted Answer

a)
  b)
  c)

Question 3

Dividends in arrears occur when the company does not pay dividends to:

Accepted Answer

A)  cumulative preferred stockholders.
B)  non-cumulative preferred stockholders.
C)  participating preferred stockholders.
D)  non-participating common stockholders. A

Question 4

Number of preferred shares times par value times dividend rate is the formula used to determine dividends to be paid.

Accepted Answer

A) True 
 B)False

Question 5

If preferred stock is cumulative, the preferred stockholders:

Accepted Answer

A)  have a right to certain dividends every year.
B)  may receive a bonus.
C)  will always receive a yearly dividend.
D)  All of these answers are correct.

Question 6

The journal entry for the receipt of a cash payment on common stock subscriptions would include:

Accepted Answer

A)  debiting Subscriptions Receivable-Common Stock ; crediting Common Stock.
B)  debiting Common Stock; crediting Subscriptions Receivable-Common Stock.
C)  debiting Cash; crediting Subscriptions Receivable-Common Stock.
D)  debiting Cash; crediting Common Stock Subscribed.

Question 7

Using the following accounts:
  Indicate the account(s)to be debited and credited to record the following transactions.
-Sold common stock at a price above the par value.
Debit ________& ________ & ________ Credit ________ & ________ & ________

Accepted Answer

The answer of Using the following accounts:
  Indicate the...

Question 8

The financial loss that each stockholder in a corporation can incur is limited to the amount invested by the stockholder.

Accepted Answer

A) True 
 B)False

Question 9

In exchange for $1,500 legal services to help set up the new company, Hickory Grove Corporation issued 100 shares of $10 par value stock to its attorney. The entry to record the issuance of the stock would include a:

Accepted Answer

A)  credit to Common Stock for $1,000.
B)  debit to Common Stock for $1,000.
C)  credit to Common Stock for $1,500.
D)  debit to Paid-in Capital in Excess of Par Value for $500.

Question 10

Using the following accounts:
  Indicate the account(s)to be debited and credited to record the following transactions.
-Sold preferred stock at a price equal to par value.
Debit ________ & ________ & ________ Credit ________ & ________ & ________

Accepted Answer

The answer of Using the following accounts:
  Indicate the...

Question 11

Using the following accounts:
  Indicate the account(s)to be debited and credited to record the following transactions.
-Sold common stock at a price equal to the par value.
Debit ________ & ________ & ________ Credit ________ & ________ & ________

Accepted Answer

The answer of Using the following accounts:
  Indicate the...

Question 12

Voting rights are a characteristic of which type stock?

Accepted Answer

A)  Common but not preferred
B)  Preferred but not common
C)  Both common and preferred
D)  Neither common or preferred

Question 13

Alpha-Omega Industries has 30,000 shares of $12 par common stock and 15,000 shares of $50 par, 5% preferred stock outstanding. Total dividends available are $162,000. Compute the dividends to be distributed to preferred and common stockholders under the following condition.
The preferred stock is nonparticipating and non-cumulative with no dividends distributed last year.

Accepted Answer

The answer of Alpha-Omega Industries has 30,000 shares of $12...

Question 14

Identify the account types used in recording transactions related to a stock subscription plan: Subscriptions Receivable-Common Stock; Common Stock Subscribed, Paid-In Capital in Excess of Par, Common Stock, Cash. Also list the financial statement where the accounts are found.

Accepted Answer

The answer of Identify the account types used in recording...

Question 15

Corporations are subject to more government regulations than sole proprietorships and partnerships.

Accepted Answer

A) True 
 B)False

Question 16

Cox Corporation has issued 1,000 shares of stock. Janis owns 200 shares. If the corporation issues an additional 500 shares, how many shares does Janis have the preemptive right to purchase?

Accepted Answer

A)  100 shares
B)  200 shares
C)  500 shares
D)  None

Question 17

Journalize the transactions for the stock subscription plan for Nick Company. On February 1, Nick received subscriptions for 80 shares of $10 par value common stock at $12 per share. The buyer will pay two equal installments on March 1 and June 1. Assume all payments are made as scheduled and the company issues the stock after the June 1 collection.

Accepted Answer

The answer of Journalize the transactions for the stock subscription...

Question 18

Soy.com Corporation has 100 shares of $100, 6% cumulative nonparticipating preferred stock and 1,000 shares of $10 par value common stock outstanding. The company paid $2,000 cash dividends including one-year dividends in arrears to preferred stockholders. Preferred stockholders received:

Accepted Answer

A)  $1,200.
B)  $2,000.
C)  $182.
D)  $600.

Question 19

The ownership of the corporation consists of:

Accepted Answer

A)  the governing body.
B)  the officers of the corporation.
C)  the stockholders
D)  the board of directors.

Question 20

If preferred dividends are limited to the stated rate of dividend, the preferred stock is:

Accepted Answer

A)  non-cumulative.
B)  cumulative.
C)  participating.
D)  nonparticipating.

Exam 18: Corporations: Organizations and Stock

Using the following accounts: Indicate the account(s)to be debited and credited to record the following transactions. -Exchanged common stock for a building and land when the stock was selling at a discount. Debit & & Credit & &

Dividends in arrears occur when the company does not pay dividends to:

Number of preferred shares times par value times dividend rate is the formula used to determine dividends to be paid.

If preferred stock is cumulative, the preferred stockholders:

The journal entry for the receipt of a cash payment on common stock subscriptions would include:

Using the following accounts: Indicate the account(s)to be debited and credited to record the following transactions. -Sold common stock at a price above the par value. Debit & & Credit & &

The financial loss that each stockholder in a corporation can incur is limited to the amount invested by the stockholder.

In exchange for $1,500 legal services to help set up the new company, Hickory Grove Corporation issued 100 shares of $10 par value stock to its attorney. The entry to record the issuance of the stock would include a:

Using the following accounts: Indicate the account(s)to be debited and credited to record the following transactions. -Sold preferred stock at a price equal to par value. Debit & & Credit & &

Using the following accounts: Indicate the account(s)to be debited and credited to record the following transactions. -Sold common stock at a price equal to the par value. Debit & & Credit & &

Voting rights are a characteristic of which type stock?

Identify the account types used in recording transactions related to a stock subscription plan: Subscriptions Receivable-Common Stock; Common Stock Subscribed, Paid-In Capital in Excess of Par, Common Stock, Cash. Also list the financial statement where the accounts are found.

Corporations are subject to more government regulations than sole proprietorships and partnerships.

Cox Corporation has issued 1,000 shares of stock. Janis owns 200 shares. If the corporation issues an additional 500 shares, how many shares does Janis have the preemptive right to purchase?

Soy.com Corporation has 100 shares of $100, 6% cumulative nonparticipating preferred stock and 1,000 shares of $10 par value common stock outstanding. The company paid $2,000 cash dividends including one-year dividends in arrears to preferred stockholders. Preferred stockholders received:

The ownership of the corporation consists of:

If preferred dividends are limited to the stated rate of dividend, the preferred stock is:

Exam 18: Corporations: Organizations and Stock

Using the following accounts: Indicate the account(s)to be debited and credited to record the following transactions. -Exchanged common stock for a building and land when the stock was selling at a discount. Debit ________ & ________ & ________ Credit ________ & ________ & ________

Dividends in arrears occur when the company does not pay dividends to:

Number of preferred shares times par value times dividend rate is the formula used to determine dividends to be paid.

If preferred stock is cumulative, the preferred stockholders:

The journal entry for the receipt of a cash payment on common stock subscriptions would include:

Using the following accounts: Indicate the account(s)to be debited and credited to record the following transactions. -Sold common stock at a price above the par value. Debit ________& ________ & ________ Credit ________ & ________ & ________

The financial loss that each stockholder in a corporation can incur is limited to the amount invested by the stockholder.

In exchange for $1,500 legal services to help set up the new company, Hickory Grove Corporation issued 100 shares of $10 par value stock to its attorney. The entry to record the issuance of the stock would include a:

Using the following accounts: Indicate the account(s)to be debited and credited to record the following transactions. -Sold preferred stock at a price equal to par value. Debit ________ & ________ & ________ Credit ________ & ________ & ________

Using the following accounts: Indicate the account(s)to be debited and credited to record the following transactions. -Sold common stock at a price equal to the par value. Debit ________ & ________ & ________ Credit ________ & ________ & ________

Voting rights are a characteristic of which type stock?

Identify the account types used in recording transactions related to a stock subscription plan: Subscriptions Receivable-Common Stock; Common Stock Subscribed, Paid-In Capital in Excess of Par, Common Stock, Cash. Also list the financial statement where the accounts are found.

Corporations are subject to more government regulations than sole proprietorships and partnerships.

Cox Corporation has issued 1,000 shares of stock. Janis owns 200 shares. If the corporation issues an additional 500 shares, how many shares does Janis have the preemptive right to purchase?

Soy.com Corporation has 100 shares of $100, 6% cumulative nonparticipating preferred stock and 1,000 shares of $10 par value common stock outstanding. The company paid $2,000 cash dividends including one-year dividends in arrears to preferred stockholders. Preferred stockholders received:

The ownership of the corporation consists of:

If preferred dividends are limited to the stated rate of dividend, the preferred stock is:

Using the following accounts: Indicate the account(s)to be debited and credited to record the following transactions. -Exchanged common stock for a building and land when the stock was selling at a discount. Debit & & Credit & &

Using the following accounts: Indicate the account(s)to be debited and credited to record the following transactions. -Sold common stock at a price above the par value. Debit & & Credit & &

Using the following accounts: Indicate the account(s)to be debited and credited to record the following transactions. -Sold preferred stock at a price equal to par value. Debit & & Credit & &

Using the following accounts: Indicate the account(s)to be debited and credited to record the following transactions. -Sold common stock at a price equal to the par value. Debit & & Credit & &