Question 1

The excess of sales price of treasury stock over its cost should be credited to

Accepted Answer

A)  Treasury Stock Receivable 
B)  Premium on Capital Stock 
C)  Paid-In Capital from Sale of Treasury Stock 
D)  Income from Sale of Treasury Stock 
A)  Treasury Stock Receivable 
B)  Premium on Capital Stock 
C)  Paid-In Capital from Sale of Treasury Stock 
D)  Income from Sale of Treasury Stock

Question 2

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.

Accepted Answer

A) True 
 B)False

Question 3

Under the Internal Revenue Code, corporations are required to pay federal income taxes.

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A)  150,000 shares 
B)  50,000 shares 
C)  100,000 shares 
D)  16,666 shares 
A)  150,000 shares 
B)  50,000 shares 
C)  100,000 shares 
D)  16,666 shares

Question 5

Match each of the following stockholders' equity concepts to the most appropriate term a-h).
-The number of shares sold to stockholders

Accepted Answer

A) authorized shares 
B) issued shares 
C) outstanding shares 
D) par value 
E) common stock
F)preferred stock
G)Paid-In Capital in Excess of Par
H)transfer agent 
A) authorized shares 
B) issued shares 
C) outstanding shares 
D) par value 
E) common stock
F)preferred stock
G)Paid-In Capital in Excess of Par
H)transfer agent

Question 6

The dates of importance in connection with a cash dividend of $50,000 on a corporation's common stock are
January 15, February 15, and March 15. Journalize the entries required on each date.

Accepted Answer

The answer of The dates of importance in connection with...

Question 7

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.

-$15,000

Accepted Answer

A)  Treasury stock 
B)  Retained earnings 
C)  Preferred stock 
D)  Excess of issue price over par preferred) 
E) Common stock
F) Total paid-in capital
G) Excess of issue price over par common)
H)Total stockholders' equity 
A)  Treasury stock 
B)  Retained earnings 
C)  Preferred stock 
D)  Excess of issue price over par preferred) 
E) Common stock
F) Total paid-in capital
G) Excess of issue price over par common)
H)Total stockholders' equity

Question 8

The cumulative effect of the declaration and payment of a cash dividend on a company's financial statements is to

Accepted Answer

A)  decrease total liabilities and stockholders' equity 
B)  increase total expenses and total liabilities 
C)  increase total assets and stockholders' equity 
D)  decrease total assets and stockholders' equity 
A)  decrease total liabilities and stockholders' equity 
B)  increase total expenses and total liabilities 
C)  increase total assets and stockholders' equity 
D)  decrease total assets and stockholders' equity

Question 9

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

Accepted Answer

A)  other expense on income statement 
B)  intangible asset on the balance sheet 
C)  stockholders' equity on balance sheet 
D)  other income on income statement 
A)  other expense on income statement 
B)  intangible asset on the balance sheet 
C)  stockholders' equity on balance sheet 
D)  other income on income statement

Question 10

Nebraska Inc. issues 3,000 shares of common stock for $45,000. The stock has a stated value of $10 per share. The journal entry to record the stock issuance would include a credit to Common Stock for

Accepted Answer

A)  $30,000 
B)  $45,000 
C)  $15,000 
D)  $3,000 
A)  $30,000 
B)  $45,000 
C)  $15,000 
D)  $3,000

Question 11

Using the following information, prepare the stockholders' equity section of the balance sheet. Seventy thousand shares of common stock are authorized and 7,000 shares have been reacquired.

Accepted Answer

The answer of Using the following information, prepare the stockholders'...

Question 12

Journalize the following selected transactions completed during the current fiscal year:
Mar.  4	The board of directors of New Town, Inc. declared a stock split that reduced the par of common shares from $100 to $20. This action increased the number of outstanding shares to 500,000.
 26	Declared a dividend of $1.75 per share on the outstanding shares of common stock.
Apr.   5	Paid the dividend declared on March 26.
Nov.   1	Declared a 5% stock dividend on the common stock outstanding the fair market value of the stock to be issued is $25).
Dec.   1	Issued the certificates for the common stock dividend declared on November 1.

Accepted Answer

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

Question 13

On May 10, a company issued for cash 1,500 shares of no-par common stock with a stated value of $2) at $14, and on May 15, it issued for cash 2,000 shares of $15 par preferred stock at $58.
Journalize the entries for May 10 and 15, assuming that the common stock is to be credited with the stated value.

Accepted Answer

May 10
Cash
21,000
Common Stoc

Question 14

The liability for a dividend is recorded on which of the following dates?

Accepted Answer

A)  the date of record 
B)  the date of payment 
C)  the last day of the fiscal year 
D)  the date of declaration 
A)  the date of record 
B)  the date of payment 
C)  the last day of the fiscal year 
D)  the date of declaration

Question 15

Nexis Corp. issues 1,000 shares of $15 par value common stock at $22 per share. When the transaction is recorded, credits are made to:

Accepted Answer

A)  Common Stock, $15,000, and Paid-In Capital in Excess of Par, $7,000 
B)  Common Stock, $22,000, and Retained Earnings, $15,000 
C)  Common Stock, $7,000, and Paid-In Capital in Excess of Stated Value, $15,000 
D)  Common Stock, $22,000 
A)  Common Stock, $15,000, and Paid-In Capital in Excess of Par, $7,000 
B)  Common Stock, $22,000, and Retained Earnings, $15,000 
C)  Common Stock, $7,000, and Paid-In Capital in Excess of Stated Value, $15,000 
D)  Common Stock, $22,000

Question 16

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

Accepted Answer

A)  Common Stock 
B)  Paid-In Capital in Excess of Par 
C)  Dividends in Arrears 
D)  Retained Earnings 
A)  Common Stock 
B)  Paid-In Capital in Excess of Par 
C)  Dividends in Arrears 
D)  Retained Earnings

Question 17

Match 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 stock
F)preferred stock
G)date of payment
H)Paid-In Capital in Excess of Par 
A) cash dividend 
B) date of record 
C) Stock Dividends Distributable 
D) date of declaration 
E) treasury stock
F)preferred stock
G)date of payment
H)Paid-In Capital in Excess of Par

Question 18

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?

Accepted Answer

a) 140,000 shares 35

Question 19

Which of the following amounts should be disclosed in the stockholders' equity section of the balance sheet?

Accepted Answer

A)  the number of shares of common stock outstanding 
B)  the number of shares of common stock issued 
C)  the number of shares of common stock authorized 
D)  all of these 
A)  the number of shares of common stock outstanding 
B)  the number of shares of common stock issued 
C)  the number of shares of common stock authorized 
D)  all of these

Question 20

The term deficit is used to refer to a debit balance in which of the following accounts of a corporation?

Accepted Answer

A)  Retained Earnings 
B)  Treasury Stock 
C)  Organizational Expenses 
D)  Common Stock 
A)  Retained Earnings 
B)  Treasury Stock 
C)  Organizational Expenses 
D)  Common Stock

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

The excess of sales price of treasury stock over its cost should be credited to

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.

Under the Internal Revenue Code, corporations are required to pay federal income taxes.

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

Match each of the following stockholders' equity concepts to the most appropriate term a-h). -The number of shares sold to stockholders

The dates of importance in connection with a cash dividend of $50,000 on a corporation's common stock are January 15, February 15, and March 15. Journalize the entries required on each date.

The cumulative effect of the declaration and payment of a cash dividend on a company's financial statements is to

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

Nebraska Inc. issues 3,000 shares of common stock for $45,000. The stock has a stated value of $10 per share. The journal entry to record the stock issuance would include a credit to Common Stock for

Using the following information, prepare the stockholders' equity section of the balance sheet. Seventy thousand shares of common stock are authorized and 7,000 shares have been reacquired.

The liability for a dividend is recorded on which of the following dates?

Nexis Corp. issues 1,000 shares of $15 par value common stock at $22 per share. When the transaction is recorded, credits are made to:

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

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

Which of the following amounts should be disclosed in the stockholders' equity section of the balance sheet?

The term deficit is used to refer to a debit balance in which of the following accounts of a corporation?

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley, Internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting Concepts and Principles

Job Order Costing

Process Cost Systems

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Performance Evaluation Using Variances From Standard Costs

Performance Evaluation for Decentralized Operations

Differential Analysis, Product Pricing, and Activity-Based Costing

Capital Investment Analysis

Cost Allocation and Activity-Based Costing

Lean Principles, Lean Accounting, and Activity Analysis

Filters

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