Exam 11: Corporations: Organization, Stock Transactions, and Dividends

For the current year ended, ABC had the following transactions: - Issued 10,000 shares of $2.00 par value common stock for $12.00 per share. - Issued 3,000 shares of $50 par value 6% preferred stock for $70 per share. - Purchased 1,000 shares of previously issued common stock for $15.00 per share. - Reported net income of $200,000. - Declared and paid a total dividend of $40,000. Assume that retained earnings had a beginning balance of $75,000. -$550,000

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.

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

If paid-in-capital in excess of par/preferred stock is $30,000, preferred stock is $200,000, paid-in capital in excess of par/common stock is $20,000, common stock is $525,000, and retained earnings is $105,000 deficit), the total stockholders' equity is $880,000.

A corporation has 50,000 shares of $25 par stock outstanding that has a current market value of $150 per share. If the corporation issues a 5-for-1 stock split, the market value of the stock after the split will be approximately

Those most responsible for the major policy decisions of a corporation are the

Sabas Company has 20,000 shares of $100 par, 2% cumulative preferred stock and 100,000 shares of $50 par common stock. The following amounts were distributed as dividends: Year 1: $10,000 Year 2: 45,000 Year 3: 90,000 Determine the dividends per share for preferred and common stock for the third year.

The retained earnings statement may be combined with the income statement.

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

The charter of a corporation provides for the issuance of 100,000 shares of common stock. Assume that 40,000 shares were originally issued and 10,000 were subsequently reacquired. What is the number of shares outstanding?

Par value

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?

Match each of the following stockholders' equity concepts to the appropriate term a-h). -A company whose shares are not bought or sold in public markets

Match the following stockholders' equity concepts to the appropriate term a-h). -The date that is used to determine the owners of stock who will receive the current dividend

Journalize the following selected transactions completed during the current fiscal year: Jan. 3 The board of directors declared a stock split that reduced the par of common shares from $100 to $20. This action increased the number of outstanding shares to 400,000. 22 Declared a dividend of $1.75 per share on the outstanding shares of common stock. Feb. 8 Paid the dividend declared on January 22. Sept. 1 Declared a 5% stock dividend on the common stock outstanding the fair market value of the stock to be issued is $30). Oct. 1 Issued the certificates for the common stock dividend declared on September 1.

Which of the following would appear as a prior period adjustment?

For the current year ended, ABC had the following transactions: - Issued 10,000 shares of $2.00 par value common stock for $12.00 per share. - Issued 3,000 shares of $50 par value 6% preferred stock for $70 per share. - Purchased 1,000 shares of previously issued common stock for $15.00 per share. - Reported net income of $200,000. - Declared and paid a total dividend of $40,000. Assume that retained earnings had a beginning balance of $75,000. -$60,000

A corporation purchased 1,000 shares of its own $5 par common stock at $10 and subsequently sold 500 of the shares at $20. What is the amount of revenue realized from the sale?

Match each of the following stockholders' equity concepts to the most appropriate term a-h). -A class of stock having first rights to dividends of a corporation

The initial stockholders of a newly formed corporation are called directors.