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

In the stockholders' equity section of the balance sheet,

If preferred stock is cumulative, the

Which of the following statements about dividends is not accurate?

A 10% stock dividend will increase the number of shares outstanding but the book value per share will decrease.

As soon as a corporation is authorized to issue stock, an accounting journal entry should be made recording the total value of the shares authorized.

Dividends are predominantly paid in

Which of the following is an incorrect statement about a corporation?

Each of the following is reported for common stock except the

Barton Company is a publicly held corporation whose $1 par value stock is actively traded at $31 per share. The company issued 3,000 shares of stock to acquire land recently advertised at $100,000. When recording this transaction, Barton Company will

Outstanding stock of the Core Corporation included 20,000 shares of $5 par common stock and 10,000 shares of 6%, $10 par noncumulative preferred stock. In 2014, Core declared and paid dividends of $4,000. In 2015, Core declared and paid dividends of $12,000. How much of the 2015 dividend was distributed to preferred shareholders?

Realistic Corporation's December 31, 2015 balance sheet showed the following: 8% preferred stock, $20 par value, cumulative, 20,000 shares authorized; 10,000 shares issued \ 200,000 Common stock, \1 0 par value, 2,000,000 shares authorized; 1,950,000 shares issued, 1,930,000 shares outstanding 19,500,000 Paid-in capital in excess of par-preferred stock 60,000 Paid-in capital in excess of par-common stock 24,000,000 Retained earnings 7,650,000 Treasury stock (20,000 shares) 630,000 Realistic's total paid-in capital was

Indicate the respective effects of the declaration of a cash dividend on the following balance sheet sections: A) Increase Decrease No change B) No change Increase Decrease C) Decrease Increase Decrease D) Decrease No change Increase

In the stockholders' equity section of the balance sheet, the classification of capital stock consists of

Additional paid-in capital includes all of the following except

Many companies prepare a stockholders' equity statement instead of presenting a detailed stockholders' equity section in the balance sheet.

Ramos Corporation sold 400 shares of treasury stock for $45 per share. The cost for the shares was $35. The entry to record the sale will include a

When stock dividends are distributed,

The par value of a stock

A 3-for-1 common stock split will increase total stockholders' equity but reduce the par or stated value per share of common stock.

The per share amount normally assigned by the board of directors to a large stock dividend is