Question 1

On April 10,a company acquired land in exchange for 1,000 shares of $20 par common stock with a current market price of $73.Journalize this transaction.

Accepted Answer

The answer of On April 10,a company acquired land in...

Question 2

On March 4 of the current year,Barefoot Bay,Inc.reacquired 5,000 shares of its common stock at $89 per share.On August 7,Barefoot Bay sold 3,500 of the reacquired shares at $100 per share.The remaining 1,500 shares were sold at $88 per share on November 29.
​

Accepted Answer

The answer of On March 4 of the current year,Barefoot...

Question 3

If Dakota Company issues 1,500 shares of $6 par common stock for $75,000,

Accepted Answer

A)  Common Stock will be credited for $75,000 
B)  Paid-In Capital in Excess of Par will be credited for $9,000 
C)  Paid-In Capital in Excess of Par will be credited for $66,000 
D)  Cash will be debited for $66,000

Question 4

Significant changes in stockholders' equity are reported in

Accepted Answer

A)  income statement 
B)  retained earnings statement 
C)  statement of stockholders' equity 
D)  statement of cash flows

Question 5

The declaration and issuance of a stock dividend does not affect the total amount of a corporation's assets,liabilities,or stockholders' equity.

Accepted Answer

A) True 
 B)False

Question 6

On January 1,Year 1,a company had the following transactions:
​
- Issued 10,000 shares of $2.00 par common stock for $12.00 per share.
- Issued 3,000 shares of $50 par,6% cumulative preferred stock for $70 per share.
- Purchased 1,000 shares of previously issued common stock for $15.00 per share.
- No other shares of stock were issued or outstanding.
​
The company had the following dividend information available:
​
Year 1 - No dividend paid
Year 2 - Paid a $2,000 total dividend
Year 3 - Paid a $20,000 total dividend
Year 4 - Paid a $25,000 total dividend
​
Using the following format,fill in the correct values for each year:
​
​

Accepted Answer

The answer of On January 1,Year 1,a company had the...

Question 7

The following account balances appear on the balance sheet of Osgood Industries:
Common Stock (300,000 shares authorized,$100 par): $10,000,000
Paid-In Capital in Excess of Par-Common Stock: $2,000,000
Retained Earnings: $45,000,000
​
The board of directors declared a 2% stock dividend when the market price of the stock was $135 a share.
​
Required:

Accepted Answer

The answer of The following account balances appear on the...

Question 8

Nevada Corporation has 30,000 shares of $25 par 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)  6,000 
C)  150,000 
D)  15,000

Question 9

Match each of the following stockholders' equity concepts to the most appropriate term (a-h).
-The number of shares currently held by stockholders

Accepted Answer

A) authorized shares 
B) issued shares 
C) outstanding shares 
D) par value 
E) common stock
F)preferred stock
G)Paid-In Capital in Excess of Par
H)transfer agent

Question 10

Preferred stockholders must receive their current-year dividends before the common stockholders can receive any dividends.

Accepted Answer

A) True 
 B)False

Question 11

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 12

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

Accepted Answer

A) True 
 B)False

Question 13

Match each of the following stockholders' equity concepts to the most appropriate term (a-h).
-The account used to record the difference when issue price exceeds par value of stock

Accepted Answer

A) authorized shares 
B) issued shares 
C) outstanding shares 
D) par value 
E) common stock
F)preferred stock
G)Paid-In Capital in Excess of Par
H)transfer agent

Question 14

When the board of directors declares a cash or stock dividend,this action decreases retained earnings.

Accepted Answer

A) True 
 B)False

Question 15

The price at which a stock can be sold depends upon a number of factors.Which statement below is not one of those factors?

Accepted Answer

A)  the financial condition,earnings record,and dividend record of the corporation 
B)  investor expectations of the corporation's earning power 
C)  how high the par value is 
D)  general business and economic conditions and prospects

Question 16

​Prepare entries to record the transactions for Maine Corp.:

Accepted Answer

The answer of ​Prepare entries to record the transactions for...

Question 17

A large public corporation normally uses registrars and transfer agents to maintain records of the stockholders.

Accepted Answer

A) True 
 B)False

Question 18

A large retained earnings account means that there is cash available to pay dividends.

Accepted Answer

A) True 
 B)False

Question 19

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.

Accepted Answer

A)  $2.25 and $0.00 
B)  $2.25 and $0.45 
C)  $0.00 and $0.45 
D)  $2.00 and $0.45

Question 20

Prepare entries to record the following:

Accepted Answer

The answer of Prepare entries to record the following:
 ...

Exam 12: Corporations: Organization, stock Transactions, and Dividends

On April 10,a company acquired land in exchange for 1,000 shares of $20 par common stock with a current market price of $73.Journalize this transaction.

On March 4 of the current year,Barefoot Bay,Inc.reacquired 5,000 shares of its common stock at $89 per share.On August 7,Barefoot Bay sold 3,500 of the reacquired shares at $100 per share.The remaining 1,500 shares were sold at $88 per share on November 29.

If Dakota Company issues 1,500 shares of $6 par common stock for $75,000,

Significant changes in stockholders' equity are reported in

The declaration and issuance of a stock dividend does not affect the total amount of a corporation's assets,liabilities,or stockholders' equity.

Nevada Corporation has 30,000 shares of $25 par 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

Match each of the following stockholders' equity concepts to the most appropriate term (a-h) . -The number of shares currently held by stockholders

Preferred stockholders must receive their current-year dividends before the common stockholders can receive any dividends.

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.

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

Match each of the following stockholders' equity concepts to the most appropriate term (a-h) . -The account used to record the difference when issue price exceeds par value of stock

When the board of directors declares a cash or stock dividend,this action decreases retained earnings.

The price at which a stock can be sold depends upon a number of factors.Which statement below is not one of those factors?

Prepare entries to record the transactions for Maine Corp.:

A large public corporation normally uses registrars and transfer agents to maintain records of the stockholders.

A large retained earnings account means that there is cash available to pay dividends.

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.

Prepare entries to record the following:

Exam 12: Corporations: Organization, stock Transactions, and Dividends

On April 10,a company acquired land in exchange for 1,000 shares of $20 par common stock with a current market price of $73.Journalize this transaction.

On March 4 of the current year,Barefoot Bay,Inc.reacquired 5,000 shares of its common stock at $89 per share.On August 7,Barefoot Bay sold 3,500 of the reacquired shares at $100 per share.The remaining 1,500 shares were sold at $88 per share on November 29. ​

If Dakota Company issues 1,500 shares of $6 par common stock for $75,000,

Significant changes in stockholders' equity are reported in

The declaration and issuance of a stock dividend does not affect the total amount of a corporation's assets,liabilities,or stockholders' equity.

Nevada Corporation has 30,000 shares of $25 par 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

Match each of the following stockholders' equity concepts to the most appropriate term (a-h) . -The number of shares currently held by stockholders

Preferred stockholders must receive their current-year dividends before the common stockholders can receive any dividends.

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.

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

Match each of the following stockholders' equity concepts to the most appropriate term (a-h) . -The account used to record the difference when issue price exceeds par value of stock

When the board of directors declares a cash or stock dividend,this action decreases retained earnings.

The price at which a stock can be sold depends upon a number of factors.Which statement below is not one of those factors?

​Prepare entries to record the transactions for Maine Corp.:

A large public corporation normally uses registrars and transfer agents to maintain records of the stockholders.

A large retained earnings account means that there is cash available to pay dividends.

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.

Prepare entries to record the following:

On March 4 of the current year,Barefoot Bay,Inc.reacquired 5,000 shares of its common stock at $89 per share.On August 7,Barefoot Bay sold 3,500 of the reacquired shares at $100 per share.The remaining 1,500 shares were sold at $88 per share on November 29.

Prepare entries to record the transactions for Maine Corp.:

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.