Question 1

What is the total stockholders' equity based on the following account balances?

Accepted Answer

A) $1,900,000. 
B) $2,320,000. 
C) $2,260,000. 
D) $2,200,000. 
A) $1,900,000. 
B) $2,320,000. 
C) $2,260,000. 
D) $2,200,000.

Question 2

The following data is available for BOX Corporation at December 31, 2020:   Based on the data, how many shares of common stock are issued?

Accepted Answer

A) 30,000. 
B) 27,000. 
C) 29,920. 
D) 26,920. 
A) 30,000. 
B) 27,000. 
C) 29,920. 
D) 26,920.

Question 3

Retro Company is authorized to issue 10,000 shares of 8%, $100 par value preferred stock and 500,000 shares of no-par common stock with a stated value of $1 per share.If Retro issues 7,000 shares of preferred stock for land with an asking price of $875,000 and a market value of $770,000, which of the following would be the best journal entry for Retro to record?

Accepted Answer

The answer of Retro Company is authorized to issue 10,000...

Question 4

The number of common shares outstanding can never be greater than the number of shares issued.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

The following selected amounts are available for Thomas Company.   What is its ending Retained Earnings balance?

Accepted Answer

A) $3,200. 
B) $3,300. 
C) $2,900. 
D) $3,100. 
A) $3,200. 
B) $3,300. 
C) $2,900. 
D) $3,100.

Question 7

Cey, Inc.issued 10,000 shares of stock at a stated value of $10/share.The total issue of stock sold for $15/share.The journal entry to record this transaction would include a

Accepted Answer

A) debit to Cash for $100,000. 
B) credit to Common Stock for $100,000. 
C) credit to Paid-in Capital in Excess of Par Value for $50,000. 
D) credit to Common Stock for $150,000. 
A) debit to Cash for $100,000. 
B) credit to Common Stock for $100,000. 
C) credit to Paid-in Capital in Excess of Par Value for $50,000. 
D) credit to Common Stock for $150,000.

Question 8

If Norben Company issues 6,000 shares of $5 par value common stock for $210,000, the account

Accepted Answer

A) Common Stock will be credited for $210,000. 
B) Paid-in Capital in Excess of Par Value will be credited for $30,000. 
C) Paid-in Capital in Excess of Par Value will be credited for $180,000. 
D) Cash will be debited for $180,000. 
A) Common Stock will be credited for $210,000. 
B) Paid-in Capital in Excess of Par Value will be credited for $30,000. 
C) Paid-in Capital in Excess of Par Value will be credited for $180,000. 
D) Cash will be debited for $180,000.

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Identify the effect the declaration of a stock dividend has on the par value per share and book value per share.

Accepted Answer

The answer of Identify the effect the declaration of a...

Question 11

Which of the following statements concerning taxation is accurate?

Accepted Answer

A) Partnerships pay state income taxes but not federal income taxes. 
B) Corporations pay federal income taxes but not state income taxes. 
C) Corporations pay federal and state income taxes. 
D) Only the owners must pay taxes on corporate income. 
A) Partnerships pay state income taxes but not federal income taxes. 
B) Corporations pay federal income taxes but not state income taxes. 
C) Corporations pay federal and state income taxes. 
D) Only the owners must pay taxes on corporate income.

Question 12

On January 1, Ripken Corporation had 80,000 shares of $10 par value common stock outstanding.On May 7, the company declared a 10% stock dividend to stockholders of record on May 21.The market value of the stock was $13 on May 7.The stock was distributed on May 24.The entry to record the transaction of May 24 would include a

Accepted Answer

A) credit to Common Stock for $80,000. 
B) debit to Common Stock Dividends Distributable for $104,000. 
C) credit to Paid-in Capital in Excess of Par Value for $24,000. 
D) debit to Stock Dividends for $24,000. 
A) credit to Common Stock for $80,000. 
B) debit to Common Stock Dividends Distributable for $104,000. 
C) credit to Paid-in Capital in Excess of Par Value for $24,000. 
D) debit to Stock Dividends for $24,000.

Question 13

Denson, Inc.has 10,000 shares of 5%, $100 par value, non-cumulative preferred stock and 40,000 shares of $1 par value common stock outstanding at December 31, 2020.There were no dividends declared in 2019.The board of directors declares and pays a $120,000 dividend in 2020.What is the amount of dividends received by the common stockholders in 2020?

Accepted Answer

A) $0. 
B) $50,000. 
C) $120,000. 
D) $70,000. 
A) $0. 
B) $50,000. 
C) $120,000. 
D) $70,000.

Question 14

On January 1, Edmiston Corporation had 2,000,000 shares of $10 par value common stock outstanding.On March 31, the company declared a 10% stock dividend.The market value of the stock was $15/share.As a result of this event,

Accepted Answer

A) Edmiston's Paid-in Capital in Excess of Par Value account increased $1,000,000. 
B) Edmiston's total stockholders' equity was unaffected. 
C) Edmiston's Stock Dividends account increased $3,000,000. 
D) All of these answer choices are correct. 
A) Edmiston's Paid-in Capital in Excess of Par Value account increased $1,000,000. 
B) Edmiston's total stockholders' equity was unaffected. 
C) Edmiston's Stock Dividends account increased $3,000,000. 
D) All of these answer choices are correct.

Question 15

Logan Corporation issues 70,000 shares of $50 par value preferred stock for cash at $60 per share.The entry to record the transaction will consist of a debit to Cash for $4,200,000 and a credit or credits to

Accepted Answer

A) Preferred Stock for $4,200,000. 
B) Preferred Stock for $3,500,000 and Paid-in Capital in Excess of Par Value-Preferred Stock for $700,000. 
C) Preferred Stock for $3,500,000 and Retained Earnings for $700,000. 
D) Paid-in Capital from Preferred Stock for $4,200,000. 
A) Preferred Stock for $4,200,000. 
B) Preferred Stock for $3,500,000 and Paid-in Capital in Excess of Par Value-Preferred Stock for $700,000. 
C) Preferred Stock for $3,500,000 and Retained Earnings for $700,000. 
D) Paid-in Capital from Preferred Stock for $4,200,000.

Question 16

Retained earnings represents the amount of cash available for dividends.

Accepted Answer

A) True 
 B)False

Question 17

The board of directors of Yancey Company declared a cash dividend of $1.50 per share on 42,000 shares of common stock on July 15, 2020.The dividend is to be paid on August 15, 2020, to stockholders of record on July 31, 2020.The correct entry to be recorded on July 15, 2020, will include a

Accepted Answer

A) debit to Dividends Payable. 
B) debit to Cash Dividends. 
C) credit to Cash. 
D) credit to Cash Dividends. 
A) debit to Dividends Payable. 
B) debit to Cash Dividends. 
C) credit to Cash. 
D) credit to Cash Dividends.

Question 18

Johnson Company issued 900 shares of no-par common stock for $17,100.Which of the following journal entries would be made if the stock has no stated value?

Accepted Answer

The answer of Johnson Company issued 900 shares of no-par...

Question 19

Which of the following statements regarding the date of a cash dividend declaration is not accurate?

Accepted Answer

A) The dividend can be rescinded once it has been declared. 
B) The corporation is committed to a legal, binding obligation. 
C) The board of directors formally authorizes the cash dividend. 
D) A liability account must be increased. 
A) The dividend can be rescinded once it has been declared. 
B) The corporation is committed to a legal, binding obligation. 
C) The board of directors formally authorizes the cash dividend. 
D) A liability account must be increased.

Question 20

Under the corporate form of business organization

Accepted Answer

A) a stockholder is personally liable for the debts of the corporation. 
B) stockholders' acts can bind the corporation even though the stockholders have not been appointed as agents of the corporation. 
C) the corporation's life is stipulated in its charter. 
D) stockholders wishing to sell their corporation shares must get the approval of other stockholders. 
A) a stockholder is personally liable for the debts of the corporation. 
B) stockholders' acts can bind the corporation even though the stockholders have not been appointed as agents of the corporation. 
C) the corporation's life is stipulated in its charter. 
D) stockholders wishing to sell their corporation shares must get the approval of other stockholders.

What is the total stockholders' equity based on the following account balances?

The following data is available for BOX Corporation at December 31, 2020: Based on the data, how many shares of common stock are issued?

The number of common shares outstanding can never be greater than the number of shares issued.

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

The following selected amounts are available for Thomas Company. What is its ending Retained Earnings balance?

Cey, Inc.issued 10,000 shares of stock at a stated value of $10/share.The total issue of stock sold for $15/share.The journal entry to record this transaction would include a

If Norben Company issues 6,000 shares of $5 par value common stock for $210,000, the account

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

Identify the effect the declaration of a stock dividend has on the par value per share and book value per share.

Which of the following statements concerning taxation is accurate?

On January 1, Edmiston Corporation had 2,000,000 shares of $10 par value common stock outstanding.On March 31, the company declared a 10% stock dividend.The market value of the stock was $15/share.As a result of this event,

Logan Corporation issues 70,000 shares of $50 par value preferred stock for cash at $60 per share.The entry to record the transaction will consist of a debit to Cash for $4,200,000 and a credit or credits to

Retained earnings represents the amount of cash available for dividends.

The board of directors of Yancey Company declared a cash dividend of $1.50 per share on 42,000 shares of common stock on July 15, 2020.The dividend is to be paid on August 15, 2020, to stockholders of record on July 31, 2020.The correct entry to be recorded on July 15, 2020, will include a

Johnson Company issued 900 shares of no-par common stock for $17,100.Which of the following journal entries would be made if the stock has no stated value?

Which of the following statements regarding the date of a cash dividend declaration is not accurate?

Under the corporate form of business organization

Introduction to Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Merchandising Operations and the Multiple-Step Income Statement

Reporting and Analyzing Inventory

Fraud, Internal Control, and Cash

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities

Statement of Cash Flows

Financial Analysis: The Big Picture

Understanding Investments in Debt and Equity Securities

Filters

Exam 11: Reporting and Analyzing Stockholders Equity

What is the total stockholders' equity based on the following account balances?

The following data is available for BOX Corporation at December 31, 2020: Based on the data, how many shares of common stock are issued?

The number of common shares outstanding can never be greater than the number of shares issued.

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

The following selected amounts are available for Thomas Company. What is its ending Retained Earnings balance?

Cey, Inc.issued 10,000 shares of stock at a stated value of $10/share.The total issue of stock sold for $15/share.The journal entry to record this transaction would include a

If Norben Company issues 6,000 shares of $5 par value common stock for $210,000, the account

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

Identify the effect the declaration of a stock dividend has on the par value per share and book value per share.

Which of the following statements concerning taxation is accurate?

On January 1, Edmiston Corporation had 2,000,000 shares of $10 par value common stock outstanding.On March 31, the company declared a 10% stock dividend.The market value of the stock was $15/share.As a result of this event,

Logan Corporation issues 70,000 shares of $50 par value preferred stock for cash at $60 per share.The entry to record the transaction will consist of a debit to Cash for $4,200,000 and a credit or credits to

Retained earnings represents the amount of cash available for dividends.

The board of directors of Yancey Company declared a cash dividend of $1.50 per share on 42,000 shares of common stock on July 15, 2020.The dividend is to be paid on August 15, 2020, to stockholders of record on July 31, 2020.The correct entry to be recorded on July 15, 2020, will include a

Johnson Company issued 900 shares of no-par common stock for $17,100.Which of the following journal entries would be made if the stock has no stated value?

Which of the following statements regarding the date of a cash dividend declaration is not accurate?

Under the corporate form of business organization

Introduction to Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Merchandising Operations and the Multiple-Step Income Statement

Reporting and Analyzing Inventory

Fraud, Internal Control, and Cash

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities

Statement of Cash Flows

Financial Analysis: The Big Picture

Understanding Investments in Debt and Equity Securities

Filters