Question 1

The type of share that can be bought back by the company at a specified time and price is

Accepted Answer

A) Cumulative preferred share 
B) Callable common share 
C) Redeemable preferred share 
D) Participating preferred share 
E) Convertible preferred share 
A) Cumulative preferred share 
B) Callable common share 
C) Redeemable preferred share 
D) Participating preferred share 
E) Convertible preferred share

Question 2

A corporation is a legal entity separate from its owners.

Accepted Answer

A) True 
 B)False

Question 3

Dillon Snowboards Ltd issued 60 no-par-value common shares for $10,000.The amount of contributed capital arising from this transaction is

Accepted Answer

A) $100 
B) $600 
C) $1,000 
D) $6,000 
E) $10,000 
A) $100 
B) $600 
C) $1,000 
D) $6,000 
E) $10,000

Question 4

On January 1,Linnea Ltd.'s equity was as follows: common shares,unlimited shares authorized,and 35,000 shares issued and outstanding.Prepare journal entries to record the following transactions:
 $\begin{array}{|l|l|}
\hline\text { Aug-01}&\text { A cash dividend of } \$ 0.60 \text { per share was declared by the board of directors to } \
&\text { the shareholders of record on September } 20 \text { th, payable on October } 3 . \
\hline \text { Oct-03 }& \text { Paid the cash dividend. }\
\hline
\end{array}$

Accepted Answer

The answer of On January 1,Linnea Ltd.'s equity was as...

Question 5

During 2020,Swille Corporation had Sales of $225,000 and Operating Expenses of $123,000 and declared cash dividends of $14,000.Retained Earnings on January 1,2020 was $110,000.Prepare closing entries on December 31,2020.Calculate the balance in Retained Earnings on December 31,2020.

Accepted Answer

The answer of During 2020,Swille Corporation had Sales of $225,000...

Question 6

Bruce Corporation issued 8,000 common shares in exchange for land that has a fair market value of $184,000.The entry to record this transaction would include

Accepted Answer

A) A debit to Common Shares for $8,000 
B) A debit to Land for $8,000 
C) A credit to Land for $184,000 
D) A credit to Common Shares for $184,000 
E) A debit to Common Shares for $184,000 
A) A debit to Common Shares for $8,000 
B) A debit to Land for $8,000 
C) A credit to Land for $184,000 
D) A credit to Common Shares for $184,000 
E) A debit to Common Shares for $184,000

Question 7

Explain the procedure for preparing journal entries for the declaration and distribution of cash dividends.

Accepted Answer

When the board of directors declares a d

Question 8

Which of the following occurs at the date of record?

Accepted Answer

A) The company pays the dividend. 
B) The company accrues the dividend to be paid. 
C) The board of directors declares the dividend. 
D) A list of shareholders entitled to receive the dividend is prepared. 
E) None of the choices occurs at the date of record. 
A) The company pays the dividend. 
B) The company accrues the dividend to be paid. 
C) The board of directors declares the dividend. 
D) A list of shareholders entitled to receive the dividend is prepared. 
E) None of the choices occurs at the date of record.

Question 9

The main differences between profit reported by a proprietorship and a corporation are income tax expense and salaries paid to owners.

Accepted Answer

A) True 
 B)False

Question 10

Dallas Sports Ltd has 100 shares of $15,noncumulative,preferred shares outstanding,and $160,000 of common shares outstanding.In the company's first year of operation,no dividends were paid,but during the second year Dallas Sports paid dividends of $24,000.The dividend should be distributed as follows

Accepted Answer

A) $1,500 preferred; $22,500 common. 
B) $3,000 preferred; $21,000 common. 
C) $12,000 preferred; $12,000 common. 
D) $1,400 preferred; $12,600 common. 
E) $7,000 preferred; $7,000 common. 
A) $1,500 preferred; $22,500 common. 
B) $3,000 preferred; $21,000 common. 
C) $12,000 preferred; $12,000 common. 
D) $1,400 preferred; $12,600 common. 
E) $7,000 preferred; $7,000 common.

Question 11

The following information and transactions took place during 2020:
 $\begin{array}{|l|l|}
\hline \text { May-18 } & \begin{array}{l}
\text { Declared a } \$ 8 \text { per share cash dividend on } 20,000 \text { common shares issued and } \
\text { outstanding. }
\end{array} \
\hline \text { Jul-2 } & \text { Paid the cash dividends declared on May } 18 \text {. } \
\hline \text { Aug-31 } & \begin{array}{l}
\text { Preparing closing entries. The balance in the income summary is } \$ 45,000 \
\text { credit. }
\end{array} \
\hline
\end{array}$ Prepare journal entries for the above transactions.

Accepted Answer

The answer of The following information and transactions took place...

The type of share that can be bought back by the company at a specified time and price is

A corporation is a legal entity separate from its owners.

Dillon Snowboards Ltd issued 60 no-par-value common shares for $10,000.The amount of contributed capital arising from this transaction is

During 2020,Swille Corporation had Sales of $225,000 and Operating Expenses of $123,000 and declared cash dividends of $14,000.Retained Earnings on January 1,2020 was $110,000.Prepare closing entries on December 31,2020.Calculate the balance in Retained Earnings on December 31,2020.

Bruce Corporation issued 8,000 common shares in exchange for land that has a fair market value of $184,000.The entry to record this transaction would include

Explain the procedure for preparing journal entries for the declaration and distribution of cash dividends.

Which of the following occurs at the date of record?

The main differences between profit reported by a proprietorship and a corporation are income tax expense and salaries paid to owners.

Property, plant and Equipment Intangibles

Current Liabilities

Partnerships

Corporate Reporting: Income, earnings Per Share, and Retained Earnings

Bonds and Long-Term Notes Payable

Accounting for Debt and Share Investments

Reporting and Analyzing Cash Flows

Analyzing Financial Statements

Filters

Exam 4: Organization and Operation of Corporations

The type of share that can be bought back by the company at a specified time and price is

A corporation is a legal entity separate from its owners.

Dillon Snowboards Ltd issued 60 no-par-value common shares for $10,000.The amount of contributed capital arising from this transaction is

During 2020,Swille Corporation had Sales of $225,000 and Operating Expenses of $123,000 and declared cash dividends of $14,000.Retained Earnings on January 1,2020 was $110,000.Prepare closing entries on December 31,2020.Calculate the balance in Retained Earnings on December 31,2020.

Bruce Corporation issued 8,000 common shares in exchange for land that has a fair market value of $184,000.The entry to record this transaction would include

Explain the procedure for preparing journal entries for the declaration and distribution of cash dividends.

Which of the following occurs at the date of record?

The main differences between profit reported by a proprietorship and a corporation are income tax expense and salaries paid to owners.

Property, plant and Equipment Intangibles

Current Liabilities

Partnerships

Corporate Reporting: Income, earnings Per Share, and Retained Earnings

Bonds and Long-Term Notes Payable

Accounting for Debt and Share Investments

Reporting and Analyzing Cash Flows

Analyzing Financial Statements

Filters