FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 11: Corporations: Organization,stock Transactions,and Dividends

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 81

True/False

Review LaterAdd Note

Review Later

A stock split results in a transfer at market value from retained earnings to paid-in capital.

Correct Answer

verified

Show Answer

Question 82

Multiple Choice

Review LaterAdd Note

Review Later

How is treasury stock shown on the balance sheet?

A) as an asset
B) as a decrease in stockholders' equity
C) as an increase in stockholders' equity
D) treasury stock is not shown on the balance sheet

Correct Answer

verified

Show Answer

Question 83

True/False

Review LaterAdd Note

When common stock is issued in exchange for land,the land should be recorded in the accounts at the par value of the stock issued.

A company had the following stockholders' equity information available at year-end. - Issued 11,000 shares of $2.00 par value common stock for $12.00 per share. - Issued 5,000 shares of $50 par value 6% preferred stock for $70 per share. - Purchased 1,000 shares of previously issued common stock for $15.00 per share. - Reported net income of $200,000. - Declared and paid the preferred stock dividend. Calculate the earnings per share for the current year.

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

Alma Corp.issues 1,000 shares of $10 par common stock at $14 per share.When the transaction is recorded,credits are made to

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

169. Journalize the following selected transactions completed during the current fiscal year: Mar. 4 The board of directors of New Town, Inc. declared a stock split that reduced the par of common shares from $100 to $20. This action increased the number of outstanding shares to 500,000. 26 Declared a dividend of $1.75 per share on the outstanding shares of common stock. Apr. 5 Paid the dividend declared on March 26. Nov. 1 Declared a 5% stock dividend on the common stock outstanding the fair market value of the stock to be issued is $25. Dec. 1 Issued the certificates for the common stock dividend declared on November 1.

On February 1 of the current year,Motor,Inc.issued 700 shares of $2 par common stock to an attorney in return for preparing and filing the articles of incorporation.The value of the services is $9,600.Journalize this transaction.

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.

Treasury stock that was purchased for $3,000 is sold for $3,500.As a result of these two transactions combined

A corporation has 50,000 shares of $25 par stock outstanding that has a current market value of $150 per share.If the corporation issues a 5-for-1 stock split,the market value of the stock after the split will be approximately

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: $\begin{array}{rr}\text { Year 1: } & \$ 10,000 \\\text { Year 2: } & 45,000 \\\text { Year 3: } & 90,000\end{array}$ Determine the dividends per share for preferred and common stock for each year.

Treasury stock that had been purchased for $5,600 last month was reissued this month for $8,500.The journal entry to record the reissuance would include a credit to

If 100 shares of treasury stock were purchased for $50 per share and then sold at $60 per share,$1,000 of income is reported on the income statement.

Cash dividends are normally paid on shares of treasury stock.

The stock dividends distributable account is listed in the current liability section of the balance sheet.

Treasury Stock is listed in the stockholders' equity section on the balance sheet.

On April 2 a corporation purchased for cash 5,000 shares of its own $10 par common stock at $16 a share.It sold 3,000 of the treasury shares at $19 a share on June 10.The remaining 2,000 shares were sold on November 10 for $12 a share. a Journalize the entries to record the purchase treasury stock is recorded at cost. b Journalize the entries to record the sale of the stock.

Which of the following is the appropriate general journal entry to record the declaration of cash dividends?