Question 1

Antiques.com Corporation's outstanding stock is 75 shares of $60,8% cumulative nonparticipating preferred stock and 2,000 shares of $10 par value common stock.Antiques paid $2,760 cash dividends during the year.Common stockholders received:

Accepted Answer

A)  $2,400.
B)  $360.
C)  $2,040.
D)  $0.

Question 2

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 3

Characteristics of a corporation include:

Accepted Answer

A)  stockholders having limited liability.
B)  direct management by the stockholders.
C)  no mutual agency.
D)  Both A and C are correct.

Question 4

The type of preferred stock that entitles its holders to any undeclared dividends that have accumulated before common stockholders receive their dividends is known as:

Accepted Answer

A)  non-participating.
B)  participating.
C)  cumulative.
D)  All of these answers are correct.

Question 5

Sold preferred stock at a price equal to par value.
Debit ________ Credit ________

Accepted Answer

The answer of Sold preferred stock at a price equal...

Question 6

List and discuss the (a)advantages and (b)disadvantages of the corporation form of business.

Accepted Answer

(a)The advantages of a corporation inclu...

Question 7

Common stock was sold in excess of par;the excess was credited to Sales.This error would cause:

Accepted Answer

A)  the period's net income to be understated.
B)  the period's net income to be overstated.
C)  the period end assets to be overstated.
D)  None of these is correct.

Question 8

Which of the following is not a characteristic of a corporation?

Accepted Answer

A)  Ease of raising capital
B)  No mutual agency
C)  Unlimited life
D)  Unlimited liability

Question 9

The Bean Counter Corporation received subscriptions for 100 shares of its $12 par value common stock at $15 per share.The entry to record receipt of the subscriptions would include a:

Accepted Answer

A)  debit to Cash $1,500 and a credit to Common Stock $1,500.
B)  debit to Cash $1,500;a credit to Common Stock $1,200;and a credit to Paid-in Capital in Excess of Par Value-Common $300.
C)  debit to Common Stock Subscribed $1,500 and a credit to Subscriptions Receivable-Common Stock $1,500.
D)  debit to Subscriptions Receivable-Common Stock $1,500;a credit to Common Stock Subscribed $1,200;and a credit to Paid-in Capital in Excess of Par Value-Common for $300.

Question 10

To calculate dividends on par-value preferred stock:

Accepted Answer

A)  multiply the number of shares issued times rate.
B)  multiply rate times par-value per share.
C)  multiply number of shares outstanding times rate times par-value.
D)  None of these answers is correct.

Question 11

Each share of capital stock of a corporation gives its owner the right to:

Accepted Answer

A)  manage the daily operations of the business.
B)  set company policy.
C)  vote at stockholders' meetings.
D)  determine the amount of dividends to be paid.

Question 12

The Logan Company issued 140 shares of its $12 par value stock for $14 per share.The entry to record the receipt of cash and issuance of the stock would include a:

Accepted Answer

A)  debit to Cash of $1,680;credit to Common Stock for $1,680.
B)  debit to Cash for $1,960.
C)  credit to Common Stock for $1,960.
D)  debit to Discount on Common Stock for $280.

Question 13

The document granted by the state authorizing the creation of a corporation is known as:

Accepted Answer

A)  the articles of incorporation.
B)  the certificate of achievement.
C)  the certificate of incorporation.
D)  the minute book.

Question 14

R.Red formed a corporation with an authorization of 20,000 shares of $50 par,6% non-cumulative preferred stock and 100,000 shares of $10 par common stock.The following selected transactions were completed during the first year of operations.Journalize the transactions omitting explanations.

Accepted Answer

The answer of R.Red formed a corporation with an authorization...

Question 15

Preemptive rights allow a stockholder to:

Accepted Answer

A)  share in profits first.
B)  maintain a proportionate ownership interest in the corporation.
C)  vote their shares at the annual meeting
D)  dispose or sell their stock without notice.

Question 16

The entry to record selling 400 shares of no-par common stock with a stated value of $60 for $70 would be to:

Accepted Answer

A)  debit Cash $28,000;credit Common Stock $28,000.
B)  debit Cash $24,000;credit Common Stock $24,000.
C)  debit Cash $24,000;credit Common Stock $28,000;debit Paid-in Capital in Excess of Par Value-Common $4,000.
D)  debit Cash $28,000;credit Common Stock $24,000;credit Paid-in Capital in Excess of Stated Value-Common $4,000.

Question 17

An advantage of a corporation would be:

Accepted Answer

A)  limited liability for the shareholders.
B)  limited life.
C)  double taxation (income of corporation and dividends to shareholders) .
D)  both A and B are correct.

Question 18

Birch Company issued 200 shares of common stock with a par value of $10 per share in exchange for equipment with a fair market value of $4,000.Record the journal entry for the stock issuance.

Accepted Answer

The answer of Birch Company issued 200 shares of common...

Question 19

Prepare the journal entries for Mayhem Manufacturing:
June 10 Incurred organization costs totaling $7,500
June 14 Issued 10,000 shares of $11 par value common stock for $120,000
June 22 Issued 3,000 shares of 7%,$30 par value preferred stock for $120,000

Accepted Answer

The answer of Prepare the journal entries for Mayhem Manufacturing:
June...

Question 20

Jane Kathryn has 15,000 shares outstanding of $15 par value,5% preferred stock and 100,000 shares outstanding $10 par value common stock.In the first 3 years of operations,the company paid dividends in Year 1,$0;Year 2,$10,000;Year 3,$20,000.Calculate the dividend paid to preferred and common stockholders under the following independent situations:

Accepted Answer

The answer of Jane Kathryn has 15,000 shares outstanding of...

Exam 18: Corporations: Organizations and Stock

Sold preferred stock at a price equal to par value. Debit Credit

Correct Answer
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Correct Answer
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The Bean Counter Corporation received subscriptions for 100 shares of its $12 par value common stock at $15 per share.The entry to record receipt of the subscriptions would include a:

Correct Answer
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Preemptive rights allow a stockholder to:

Correct Answer
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Common stock was sold in excess of par;the excess was credited to Sales.This error would cause:

Correct Answer
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List and discuss the (a)advantages and (b)disadvantages of the corporation form of business.

Correct Answer
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(a)The advantages of a corporation inclu...
View Answer

Antiques.com Corporation's outstanding stock is 75 shares of $60,8% cumulative nonparticipating preferred stock and 2,000 shares of $10 par value common stock.Antiques paid $2,760 cash dividends during the year.Common stockholders received:

Correct Answer
verified

Prepare the journal entries for Mayhem Manufacturing: June 10 Incurred organization costs totaling $7,500 June 14 Issued 10,000 shares of $11 par value common stock for $120,000 June 22 Issued 3,000 shares of 7%,$30 par value preferred stock for $120,000

Correct Answer
verified

To calculate dividends on par-value preferred stock:

Correct Answer
verified

Each share of capital stock of a corporation gives its owner the right to:

Correct Answer
verified

The Logan Company issued 140 shares of its $12 par value stock for $14 per share.The entry to record the receipt of cash and issuance of the stock would include a:

Correct Answer
verified

Birch Company issued 200 shares of common stock with a par value of $10 per share in exchange for equipment with a fair market value of $4,000.Record the journal entry for the stock issuance.

Correct Answer
verified

The type of preferred stock that entitles its holders to any undeclared dividends that have accumulated before common stockholders receive their dividends is known as:

Correct Answer
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Characteristics of a corporation include:

Correct Answer
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The document granted by the state authorizing the creation of a corporation is known as:

Correct Answer
verified

R.Red formed a corporation with an authorization of 20,000 shares of $50 par,6% non-cumulative preferred stock and 100,000 shares of $10 par common stock.The following selected transactions were completed during the first year of operations.Journalize the transactions omitting explanations.

Correct Answer
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The ownership of the corporation consists of:

Correct Answer
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Which of the following is not a characteristic of a corporation?

Correct Answer
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The entry to record selling 400 shares of no-par common stock with a stated value of $60 for $70 would be to:

Correct Answer
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An advantage of a corporation would be:

Correct Answer
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Exam 18: Corporations: Organizations and Stock

Sold preferred stock at a price equal to par value. Debit ________ Credit ________

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The Bean Counter Corporation received subscriptions for 100 shares of its $12 par value common stock at $15 per share.The entry to record receipt of the subscriptions would include a:

Correct AnswerverifiedShow Answer

Preemptive rights allow a stockholder to:

Correct AnswerverifiedShow Answer

Common stock was sold in excess of par;the excess was credited to Sales.This error would cause:

Correct AnswerverifiedShow Answer

List and discuss the (a)advantages and (b)disadvantages of the corporation form of business.

Correct Answerverified(a)The advantages of a corporation inclu...View AnswerShow Answer

Antiques.com Corporation's outstanding stock is 75 shares of $60,8% cumulative nonparticipating preferred stock and 2,000 shares of $10 par value common stock.Antiques paid $2,760 cash dividends during the year.Common stockholders received:

Correct AnswerverifiedShow Answer

Prepare the journal entries for Mayhem Manufacturing: June 10 Incurred organization costs totaling $7,500 June 14 Issued 10,000 shares of $11 par value common stock for $120,000 June 22 Issued 3,000 shares of 7%,$30 par value preferred stock for $120,000

Correct AnswerverifiedShow Answer

To calculate dividends on par-value preferred stock:

Correct AnswerverifiedShow Answer

Each share of capital stock of a corporation gives its owner the right to:

Correct AnswerverifiedShow Answer

The Logan Company issued 140 shares of its $12 par value stock for $14 per share.The entry to record the receipt of cash and issuance of the stock would include a:

Correct AnswerverifiedShow Answer

Birch Company issued 200 shares of common stock with a par value of $10 per share in exchange for equipment with a fair market value of $4,000.Record the journal entry for the stock issuance.

Correct AnswerverifiedShow Answer

The type of preferred stock that entitles its holders to any undeclared dividends that have accumulated before common stockholders receive their dividends is known as:

Correct AnswerverifiedShow Answer

Characteristics of a corporation include:

Correct AnswerverifiedShow Answer

The document granted by the state authorizing the creation of a corporation is known as:

Correct AnswerverifiedShow Answer

R.Red formed a corporation with an authorization of 20,000 shares of $50 par,6% non-cumulative preferred stock and 100,000 shares of $10 par common stock.The following selected transactions were completed during the first year of operations.Journalize the transactions omitting explanations.

Correct AnswerverifiedShow Answer

The ownership of the corporation consists of:

Correct AnswerverifiedShow Answer

Which of the following is not a characteristic of a corporation?

Correct AnswerverifiedShow Answer

The entry to record selling 400 shares of no-par common stock with a stated value of $60 for $70 would be to:

Correct AnswerverifiedShow Answer

An advantage of a corporation would be:

Correct AnswerverifiedShow Answer

Sold preferred stock at a price equal to par value. Debit Credit

Correct Answer
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Correct Answer
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Correct Answer
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(a)The advantages of a corporation inclu...
View Answer

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Correct Answer
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