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Exam 13: Corporations: Organization, Stock Transactions, and Dividends

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Question 41

Multiple Choice

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All of the following are normally found in a corporation's Stockholders' equity section except

A) Common Stock
B) Paid-In Capital in Excess of Par
C) Dividends in Arrears
D) Retained Earnings

E) A) and B)
F) A) and C)

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Question 42

Multiple Choice

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Texas Inc. has 10,000 shares of 6%, $125 par value cumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31. What is the annual dividend on the preferred stock?

A) $60 per share
B) $75,000 in total
C) $10,000 in total
D) $0.75 per share

E) A) and B)
F) A) and C)

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Question 43

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Indicate whether the following actions would (+) increase, (-) decrease, or (0) not affect a company's total assets, liabilities, and stockholders' equity.

The par value per share of common stock represents the

On February 1, Marine Company reacquired 7,500 shares of its common stock at $30 per share. On March 15, Marine sold 4,500 of the reacquired shares at $34 per share. On June 2, Marine sold the remaining shares at $28 per share.​RequiredJournalize the transactions of February 1, March 15, and June 2.

Assume that retained earnings had a beginning balance of $75,000. Match the following amounts to the appropriate term (a-h) . -Common Stock = Par Value of Common Stock × Number of Shares of Common Stock Issued = $2 × 10,000 = $20,000

A company had stock outstanding as follows during each of its first three years of operations: 2,500 shares of 10%, $100 par, cumulative preferred stock and 50,000 shares of $10 par common stock. The amounts distributed as dividends are presented below. Determine the total and per-share dividends for each class of stock for each year by completing the schedule.

The cost of treasury stock is deducted from total paid-in capital and retained earnings in determining total stockholders' equity.

Journalize the following selected transactions completed during the current fiscal year.

The excess of issue price over par of common stock is termed a (n)

On April 2 a corporation purchased for cash 5,000 shares of its own $10 par common stock at $16 per share. It sold 3,000 of the treasury shares at $19 per share on June 10. The remaining 2,000 shares were sold on November 10 for $12 per 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.

The dates of importance in connection with a cash dividend of $50,000 on a corporation's common stock are January 15, February 15, and March 15. Journalize the entries required on each date.

When a stock dividend is declared, which of the following accounts is credited?

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.

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

Paid-in capital may originate from real estate transactions.

Oregon, Inc. reported net income of $105,000. During the current year, the company had 5,000 shares of $100 par, 5% preferred stock and 10,000 shares of $5 par common stock outstanding. Oregon's earnings per share is

Assume that retained earnings had a beginning balance of $75,000. Match the following amounts to the appropriate term (a-h) . -Excess of Issue Price over Par (Preferred) = Excess Price of Preferred Stock × Number of Shares of Preferred Stock Issued = ($70 - $50) × 3,000 = $20 × 3,000 = $60,000

What is the total stockholders' equity based on the following data?​Common Stock$360,000Excess of Issue Price over Par735,000Retained Earnings (deficit) (56,000) ​

The declaration of a stock dividend decreases a corporation's stockholders' equity and increases its liabilities.