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

Match each of the following stockholders' equity concepts to the most appropriate term (a-h). -The dollar amount assigned to each share of stock

Which of the following is not a prerequisite to paying a cash dividend?

The par value of common stock must always be equal to its market value on the date the stock is issued.

Which of the following amounts should be disclosed in the Stockholders' equity section of the balance sheet?

The excess of sales price of treasury stock over its cost should be credited to

On February 13, Epperson Company issued for cash 75,000 shares of no-par common stock (with a stated value of $125) at $140. On September 9, Epperson issued at par 15,000 shares of 1%, $60 par preferred stock at par for cash. On November 23, Epperson issued for cash 8,000 shares of 1%, $60 par preferred stock at $70.​Journalize the entries to record the February 13, September 9, and November 23 transactions.

When Wisconsin Corporation was formed on January 1, the corporate charter provided for 100,000 shares of $10 par value common stock. During its first month of operation, the corporation issued 8,500 shares of stock at a price of $16 per share.​The entry to record the above transaction would include a

Sabas Company has 20,000 shares of $100 par, 2% cumulative preferred stock and 100,000 shares of $50 par common stock. The following amounts were distributed as dividends:​ Determine the dividends per share for preferred and common stock for each year.

A corporation, which had 18,000 shares of common stock outstanding, declared a 3-for-1 stock split. (a)What will be the number of shares outstanding after the split? (b)If the common stock had a market price of $240 per share before the stock split, what would be an approximate market price per share after the split? (c)Journalize the entry to record the stock split.

On April 10, a company acquired land in exchange for 1,000 shares of $20 par common stock with a current market price of $73. Journalize this transaction.

The entry to record the issuance of common stock at a price above par includes a debit to

A corporation has 10,000 shares of $100 par stock outstanding. If the corporation issues a 5-for-1 stock split, the number of shares outstanding after the split will be 40,000.

Match each of the following stockholders' equity concepts to the appropriate term (a-h). -The rules and procedures for conducting a corporation's affairs

Those most responsible for the major policy decisions of a corporation are the

For accounting purposes, stated value is treated the same way as par value.

Treasury stock that was purchased for $3,000 is sold for $3,500. As a result of these two transactions combined

How is treasury stock shown on the balance sheet?

Match each of the following stockholders' equity concepts to the appropriate term (a-h). -Owners of this class of stock are entitled to receive dividends first

Assume that retained earnings had a beginning balance of $75,000. Match the following amounts to the appropriate term (a-h). -Total Paid-In Capital = Preferred Stock + Excess of Issue Price over Par (Preferred) + Common Stock + Excess of Issue Price over Par (Common) = $150,000 + $60,000 + $20,000 + $100,000 = $330,000

Solar Company has 600,000 shares of $75 par common stock outstanding. On February 13, Solar declared a 3% stock dividend to be issued on April 30 to stockholders of record on March 14. The market price of the stock was $90 per share on February 13.​Journalize the entries required on February 13, March 14, and April 30.