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 61

True/False

Review LaterAdd Note

Review Later

A deficit in Retained Earnings is reported in the stockholders' equity section of the balance sheet.

A) True
B) False

Correct Answer

verified

Show Answer

Question 62

True/False

Review LaterAdd Note

Review Later

If 50,000 shares are authorized,41,000 shares are issued,and 2,000 shares are reacquired,the number of outstanding shares is 43,000.

A) True
B) False

Correct Answer

verified

Show Answer

Question 63

Essay

Review LaterAdd Note

Prepare entries to record the following: a- Issued 1,000 shares of $15 par common stock at $54 for cash. b- Issued 1,400 shares of no-par common stock in exchange for equipment with a fair market price of $24,000. c- Purchased 100 shares of treasury stock at $26. d- Sold 100 shares of treasury stock purchased in c at $29.

Retained Earnings represents past net income less past dividends,therefore any balance in this account would be listed on the income statement.

The entry to record the issuance of common stock at a price above par includes a debit to

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

Marcos Company,which had 35,000 shares of common stock outstanding,declared a 4-for-1 stock split. a- What will be the number of shares outstanding after the split? b-If the common stock had a market price of $280 per share before the stock split,what would be an approximate market price per share after the split?

A corporation purchases 10,000 shares of its own $10 par common stock for $35 per share,recording it at cost.What will be the effect on total stockholders' equity?

163. The following account balances appear on the balance sheet of Osgood Industries: Common Stock 300,000 shares authorized, $100 par: $10,000,000 Paid­In 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: 1- Journalize the entries to record a. the declaration of the dividend, capitalizing an amount equal to market value b. the issuance of the stock certificates 2- Determine the following amounts before the stock dividend was declared: a. Total paid-in capital b. Total retained earnings c. Total stockholders’ equity 3- Determine the following amounts after the stock dividend was declared and closing entries were recorded at the end of the year: a. Total paid-in capital b. Total retained earnings c. Total stockholders’ equity

A corporation has 50,000 shares of $25 par stock outstanding.If the corporation issues a 3-for-1 stock split,the number of shares outstanding after the split will be

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

A restriction/appropriation of retained earnings

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.

A corporation has 10,000 shares of $100 par stock outstanding.If the corporation issues a 5-for-1 stock split,the number of shares outstanding after the split will be 40,000.

The ability of a corporation to obtain capital is

While some businesses have been granted charters under state laws,most businesses receive their charters under federal laws.

The number of shares of outstanding stock is equal to the number of shares authorized minus the number of shares issued.

Retained earnings

The date on which a cash dividend becomes a binding legal obligation is on the

In which section of the financial statements would Paid­In Capital from Sale of Treasury Stock be reported?