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

Each of the following decreases retained earnings except a

Barr, Inc. reports $4,000,000 of common stock, and $6,000,000 of additional paid-in capital on its balance sheet. The number of common shares issued and outstanding is 500,000 shares. The book value per share is

The cash proceeds from issuing par value stock may be equal to or greater than, but not less than par value.

Saint, Inc. declares a 15% common stock dividend when it has 30,000 shares of $10 par value common stock outstanding. If the market value of $24 per share is used, the amounts debited to Stock Dividends and credited to Paid-in Capital in Excess of Par are: Paid-in Capital in Stock Dividends Excess of Par a. \ 45,000 \ 0 b. \ 108,000 \ 63,000 c. \ 108,000 \ 45,000 d. \ 45,000 \ 63,000

The authorized stock of a corporation

Land Inc. has retained earnings of $800,000 and total stockholders' equity of $2,000,000. It has 300,000 shares of $5 par value common stock outstanding, which is currently selling for $30 per share. If Land declares a 10% stock dividend on its common stock:

The effect of a stock dividend is to

A prior period adjustment that corrects income of a prior period requires that an entry be made to

Accounting for treasury stock is done by the

The amount of a cash dividend liability is recorded on the date of record because it is on that date that the persons or entities who will receive the dividend are identified.

If Keene Company issues 9,000 shares of $5 par value common stock for $160,000, the account

Under the cost method, Treasury Stock is debited at the price paid to reacquire the shares, and the same amount is credited to Treasury Stock when the shares are sold.

Common Stock Dividends Distributable is reported as additional paid-in capital in the stockholders' equity section.

Win, Inc. has 10,000 shares of 7%, $100 par value, cumulative preferred stock and 100,000 shares of $1 par value common stock outstanding at December 31, 2015. If the board of directors declares a $70,000 dividend, the

Township, Inc. has 10,000 shares of 5%, $100 par value, noncumulative preferred stock and 100,000 shares of $1 par value common stock outstanding at December 31, 2014, and December 31, 2015. The board of directors declared and paid a $50,000 dividend in 2014. In 2015, $110,000 of dividends are declared and paid. What are the dividends received by the preferred and common shareholders in 2015? Preferred Common A) \ \0 \ 110,000 B) \ 50,000 \ 60,000 C) \ 55,000 \ 55,000 D) \ 70,000 \ 40,000

Which of the following would not be true of a privately held corporation?

Treasury Stock is a(n)

Two classifications appearing in the paid-in capital section of the balance sheet are

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 have been issued?

A company would not acquire treasury stock