Question 1

Match each of the following stockholders' equity concepts to the most appropriate term (a-h) .
-The maximum number of shares a company can issue to shareholders

Accepted Answer

A)  Authorized shares
B)  Issued shares
C)  Outstanding shares
D)  Par value
E)  Common stockF) Preferred stockG) Paid-In Capital in Excess of ParH) Transfer agent

Question 2

Sabas Company has 40,000 shares of $100 par,1% 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 each year.

Accepted Answer

The answer of Sabas Company has 40,000 shares of $100...

Question 3

The state charter allows a corporation to issue only a certain number of shares of each class of stock.This amount of stock is called

Accepted Answer

A)  treasury stock
B)  issued stock
C)  outstanding stock
D)  authorized stock

Question 4

Which of the following is not a prerequisite to paying a cash dividend?

Accepted Answer

A)  formal action by the board of directors
B)  market value in excess of par value per share
C)  sufficient cash
D)  sufficient retained earnings

Question 5

On May 1,10,000 shares of $10 par common stock were issued at $30,and on May 7,5,000 shares of $50 par preferred stock were issued at $111.Journalize the entries for May 1 and May 7.

Accepted Answer

The answer of On May 1,10,000 shares of $10 par...

Question 6

Match each of the following stockholders' equity concepts to the appropriate term (a-h) .
-A legal entity,separate from the people who create and operate it

Accepted Answer

A)  Articles of incorporation
B)  Limited liability
C)  Bylaws
D)  Corporation
E)  Public corporationF) Board of directorsG) Private corporationH) Dividends

Question 7

What is the total stockholders' equity based on the following data?​​

Accepted Answer

A)  $1,095,000
B)  $1,151,000
C)  $1,039,000
D)  $679,000

Question 8

A sale of treasury stock may result in a decrease in paid-in capital.All decreases should be charged to Paid-In Capital from Sale of Treasury Stock.

Accepted Answer

A) True 
 B)False

Question 9

The reduction in the par or stated value of common stock,accompanies by the issuance of a proportionate number of additional shares,is called a stock split.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

The answer of Indicate whether the following actions would 
(+)increase,
(-)decrease,or...

Question 11

Prepare entries to record the following:

Accepted Answer

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

Question 12

The entry to record the issuance of 150 shares of $5 par common stock at par to an attorney in payment of legal fees for organizing the corporation includes a credit to

Accepted Answer

A)  Organizational Expenses
B)  Goodwill
C)  Common Stock
D)  Cash

Question 13

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

Accepted Answer

The answer of Journalize the following selected transactions completed during...

Question 14

The charter of a corporation provides for the issuance of 100,000 shares of common stock.Assume that 60,000 shares were originally issued and 10,000 were subsequently reacquired.What is the amount of cash dividends to be paid if a $2-per-share dividend is declared?

Accepted Answer

A)  $60,000
B)  $20,000
C)  $120,000
D)  $100,000

Question 15

Match each of the following stockholders' equity concepts to the appropriate term (a-h) .
-Group that meets periodically to establish corporate policies

Accepted Answer

A)  Articles of incorporation
B)  Limited liability
C)  Bylaws
D)  Corporation
E)  Public corporationF) Board of directorsG) Private corporationH) Dividends

Question 16

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.

Accepted Answer

The answer of On February 1,Marine Company reacquired 7,500 shares...

Question 17

The stock dividends distributable account is listed in the Current liabilities section of the balance sheet.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A)  income will be increased by $500
B)  stockholders' equity will be increased by $3,500
C)  stockholders' equity will be increased by $500
D)  stockholders' equity will not change

Question 19

Match each of the following stockholders' equity concepts to the appropriate term (a-h) .
-Account used when shares are issued for an amount greater than par value

Accepted Answer

A)  Cash dividend
B)  Date of record
C)  Stock Dividends Distributable
D)  Date of declaration
E)  Treasury stockF) Preferred stockG) Date of paymentH) Paid-In Capital in Excess of Par

Question 20

The cost method of accounting for the purchase and sale of treasury stock is a commonly used method.

Accepted Answer

A) True 
 B)False

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

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.

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Sabas Company has 40,000 shares of $100 par,1% 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 each year.

Correct AnswerverifiedShow Answer

The cost method of accounting for the purchase and sale of treasury stock is a commonly used method.

Correct AnswerverifiedShow Answer

Match each of the following stockholders' equity concepts to the appropriate term (a-h) . -Account used when shares are issued for an amount greater than par value

Correct AnswerverifiedShow Answer

Match each of the following stockholders' equity concepts to the appropriate term (a-h) . -A legal entity,separate from the people who create and operate it

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The reduction in the par or stated value of common stock,accompanies by the issuance of a proportionate number of additional shares,is called a stock split.

Correct AnswerverifiedShow Answer

What is the total stockholders' equity based on the following data?​​

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On May 1,10,000 shares of $10 par common stock were issued at $30,and on May 7,5,000 shares of $50 par preferred stock were issued at $111.Journalize the entries for May 1 and May 7.

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

Correct AnswerverifiedShow Answer

The state charter allows a corporation to issue only a certain number of shares of each class of stock.This amount of stock is called

Correct AnswerverifiedShow Answer

The stock dividends distributable account is listed in the Current liabilities section of the balance sheet.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Prepare entries to record the following:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The entry to record the issuance of 150 shares of $5 par common stock at par to an attorney in payment of legal fees for organizing the corporation includes a credit to

Correct AnswerverifiedShow Answer

A sale of treasury stock may result in a decrease in paid-in capital.All decreases should be charged to Paid-In Capital from Sale of Treasury Stock.

Correct AnswerverifiedShow Answer

Match each of the following stockholders' equity concepts to the most appropriate term (a-h) . -The maximum number of shares a company can issue to shareholders

Correct AnswerverifiedShow Answer

Match each of the following stockholders' equity concepts to the appropriate term (a-h) . -Group that meets periodically to establish corporate policies

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Which of the following is not a prerequisite to paying a cash dividend?

Correct AnswerverifiedShow Answer

The charter of a corporation provides for the issuance of 100,000 shares of common stock.Assume that 60,000 shares were originally issued and 10,000 were subsequently reacquired.What is the amount of cash dividends to be paid if a $2-per-share dividend is declared?

Correct AnswerverifiedShow Answer

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.

Correct Answer
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Sabas Company has 40,000 shares of $100 par,1% 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 each year.

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What is the total stockholders' equity based on the following data?

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