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

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

On December 31, 2015, Stock, Inc. has 4,000 shares of 6% $100 par value cumulative preferred stock and 60,000 shares of $10 par value common stock outstanding. On December 31, 2015, the directors declare a $20,000 cash dividend. The entry to record the declaration of the dividend would include:

When stock dividends are distributed,

A statement of comprehensive income is presented in

Book value per share is computed by dividing total

On January 1, Soft Corporation had 80,000 shares of $10 par value common stock outstanding. On June 17, the company declared a 10% stock dividend to stockholders of record on June 20. Market value of the stock was $15 on June 17. The stock was distributed on June 30. The entry to record the transaction of June 30 would include a

The return on common stockholders' equity is computed by dividing

Book value per share is

If a stockholder receives a dividend that reduces retained earnings by the fair value of the stock, the stockholder has received a

Adams Corporation began business by issuing 400,000 shares of $5 par value common stock for $24 per share. During its first year, the corporation sustained a net loss of $40,000. The year-end balance sheet would show

Dividends in arrears on cumulative preferred stock are considered a liability.

The officer who is generally responsible for maintaining the cash position of the corporation is the

Prior period adjustments to income are reported in the current year's income statement.

A factor which distinguishes the corporate form of organization from a sole proprietorship or partnership is that a

Treasury stock is generally accounted for by the

Kong Inc. reported net income of $298,000 during 2015 and paid dividends of $26,000 on common stock. It also has 10,000 shares of 6%, $100 par value cumulative preferred stock outstanding. Common stockholders' equity was $1,200,000 on January 1, 2015, and $1,600,000 on December 31, 2015. The company's return on common stockholders' equity for 2015 is:

Rouse Corporation's December 31, 2015 balance sheet showed the following: Rouse's total stockholders' equity was

The following data is available for Blaine Corporation at December 31, 2015: Based on the data, how many shares of common stock have been issued?

Which one of the following would not be considered an advantage of the corporate form of organization?

Regular dividends are declared out of