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

In the financial statements, organization costs appears

Preferred stock has contractual preference over common stock in certain areas.

Library, Inc. has 2,500 shares of 4%, $50 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31, 2014, and December 31, 2015. The board of directors declared and paid a $3,000 dividend in 2014. In 2015, $18,000 of dividends are declared and paid. What are the dividends received by the preferred and common shareholders in 2015? Preferred Common

The par value of stock issued for noncash assets is never a factor in determining the cost of the assets received.

The following data is available for Blaine Corporation at December 31, 2015: Common stock, par \ 10 (authorized 30,000 shares) \2 50,000 Treasury Stock (at cost \ 15 per share) 900 Based on the data, how many shares of common stock are outstanding?

In the stockholders' equity section, paid-in capital and retained earnings are reported and the specific sources of paid-in capital are identified.

The Northern Corporation issues 7,000 shares of $100 par value preferred stock for cash at $120 per share. The entry to record the transaction will consist of a debit to Cash for $840,000 and a credit or credits to

On January 1, Sway Corporation had 60,000 shares of $10 par value common stock outstanding. On March 17, the company declared a 10% stock dividend to stockholders of record on March 20. Market value of the stock was $13 on March 17. The entry to record the transaction of March 17 would include a

If no-par stock is issued without a stated value, then

Sandoz Corporation was organized on January 1, 2015, with authorized capital of 500,000 shares of $10 par value common stock. During 2015, Sandoz issued 30,000 shares at $12 per share, purchased 3,000 shares of treasury stock at $13 per share, and sold 3,000 shares of treasury stock at $14 per share. What is the amount of additional paid-in capital at December 31, 2015?

Aim, Inc., has 10,000 shares of 4%, $100 par value, noncumulative preferred stock and 40,000 shares of $1 par value common stock outstanding at December 31, 2015. There were no dividends declared in 2014. The board of directors declares and pays a $120,000 dividend in 2015. What is the amount of dividends received by the common stockholders in 2015?

Era Company has 3,000 shares of 6%, $100 par non-cumulative preferred stock outstanding at December 31, 2015. No dividends have been paid on this stock for 2014 or 2015. Dividends in arrears at December 31, 2015 total

If stock is issued for a noncash asset, the asset should be recorded on the books of the corporation at

The sale of common stock below par

A proxy is a legal document that instructs a stockholder's agent how to vote shares of stock for the stockholder.

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

Stockholders of a corporation directly elect

Treasury stock should be reported in the financial statements of a corporation as a(n)

Net income of a corporation should be closed to retained earnings and net losses should be closed to paid-in capital accounts.

Outstanding stock of the Zone Corporation included 20,000 shares of $5 par common stock and 5,000 shares of 6%, $10 par noncumulative preferred stock. In 2014, Zone declared and paid dividends of $2,000. In 2015, Zone declared and paid dividends of $6,000. How much of the 2015 dividend was distributed to preferred shareholders?