Exam 11: Corporations: Organization, Stock Transactions, and Stockholders Equity

Cooke Corporation issues 10,000 shares of $50 par value preferred stock for cash at $80 per share. The entry to record the transaction will consist of a debit to Cash for $800,000 and a credit or credits to

Farmer Company reports the following amounts for 2018: The 2018 rate of return on common stockholders' equity is

A corporation purchases 30,000 shares of its own $15 par common stock for $30 per share, recording it at cost. What will be the effect on total stockholders' equity?

Preferred stock has contractual provisions that give it a preference over common stock as to ___________________ and to ___________________ in the event of liquidation.

On January 1, Edison Corporation had 1,000,000 shares of $10 par value common stock outstanding. On March 31, the company declared a 20% stock dividend. Market value of the stock was $18/share. As a result of this event,

Which of the following statements concerning taxation is accurate?

The chief accounting officer in a corporation is the

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

When stock is issued for legal services, the transaction is recorded by debiting Organization Expense for the

Ranier 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 Ranier issues 5,000 shares of preferred stock for land with an asking price of $575,000 and a market value of $550,000, which of the following would be the journal entry for Ranier to record?

The trial balance of Houston Inc. includes the following balances: Common Stock, $40,000; Paid-in Capital in Excess of Par, $64,000; Treasury Stock, $6,000; Preferred Stock, $30,000. Capital stock totals

Sleep Corporation was organized on January 1, 2017. During its first year, the corporation issued 40,000 shares of $5 par value preferred stock and 400,000 shares of $1 par value common stock. At December 31, the company declared the following cash dividends: Instructions (a) Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 4% and not cumulative. (b) Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 6% and cumulative. (c) Journalize the declaration of the cash dividend at December 31, 2019 using the assumption of part (b).

If a corporation has only one class of stock, it is referred to as

Start Inc. has 5,000 shares of 5%, $100 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31, 2018. What is the annual dividend on the preferred stock?

The entry to record the declaration of a stock dividend increases _______________, and decreases ________________.

A major difference between IFRS and GAAP relates to the

The following information is available for Evans Corporation: Instructions Compute the return on common stockholders' equity for both years. Briefly comment on your findings.

Preferred stockholders have a priority over common stockholders as to

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

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, 2017, and December 31, 2018. The board of directors declared and paid a $50,000 dividend in 2017. In 2018, $110,000 of dividends are declared and paid. What are the dividends received by the preferred and common shareholders in 2018?