Exam 13: Corporations: Organization, Stock Transactions, and Dividends

A corporation purchased 1,000 shares of its own $5 par common stock at $10 and subsequently sold 500 of the shares at $20. What amount of revenue is realized from the sale?

Match each of the following stockholders' equity concepts to the appropriate term (a-h). -A company whose shares are not bought or sold in public markets

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

Match each of the following stockholders' equity concepts to the appropriate term (a-h). -A legal entity, separate from the people who create and operate it

When common stock is issued in exchange for land, the land should be recorded in the accounts at the par value of the stock issued.

Match each of the following stockholders' equity concepts to the appropriate term (a-h). -Group that meets periodically to establish corporate policies

The day on which the board of directors of the corporation distributes a dividend is called the declaration date.

Match each of the following stockholders' equity concepts to the most appropriate term (a-h). -A financial institution that records and maintains records of another company's stockholders

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

Prepare entries to record the following transactions for Maine Corp.: (a)Issued 2,000 shares of $10 par common stock at $72 for cash. (b)Issued 2,500 shares of common stock in exchange for land with a fair market price of $130,000. (c)Purchased 400 shares of treasury stock at $70. (d)Sold the 400 shares of treasury stock purchased in (c) at $76.

At December 31, Idaho Company had the following ending account balances:?? Prepare the Stockholders' equity section of the balance sheet in good form with all of the required disclosures.

Which of the following is the appropriate general journal entry to record the declaration of cash dividends?

The amount of a corporation's retained earnings that has been restricted/appropriated should be reported in the notes to the financial statements.

If 100 shares of treasury stock were purchased for $50 per share and then sold at $60 per share, $1,000 of income is reported on the income statement.

Sneed Corporation issues 10,000 shares of $50 par preferred stock for cash at $75 per share. The entry to record the transaction will consist of a debit to Cash for $750,000 and a credit or credits to

The authorized stock of a corporation

Which of the following is not classified as paid-in capital on the balance sheet?

Treasury stock shares are

Assume that retained earnings had a beginning balance of $75,000. Match the following amounts to the appropriate term (a-h). -Total Stockholders' Equity = Total Paid-In Capital + Retained Earnings - Treasury Stock = $330,000 + $235,000 - $15,000 = $550,000

The ability of a corporation to obtain capital is