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

A stock split

The board of directors must assign a per share value to a stock dividend declared that is

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 entry to record the transaction of June 17 would include a

Cooke Corporation issues 10,000 shares of $50 par value preferred stock for cash at $60 per share. In the stockholders' equity section, the effects of the transaction above will be reported

During 2018, Pink Corporation had the following transactions and events: 1. Issued par value preferred stock for cash at par value. 2. Issued par value common stock for cash at an amount greater than par value. 3. Completed a 2 for 1 stock split in which the $10 par value common stock was changed to $5 par value stock. 4. Declared a small stock dividend when the market value was higher than the par value. 5. Declared a cash dividend. 6. Issued the shares of common stock required by the stock dividend declaration in 4 above. 7. Issued par value common stock for cash at par value. 8. Paid the cash dividend. Instructions Indicate the effect(s) of each of the foregoing items on the subdivisions of stockholders' equity. Present your answers in tabular form with the following columns. Use (I) for increase, (D) for decrease, and (NE) for no effect.

Under IFRS, Revaluation Surplus is part of

Place each of the items listed below in the appropriate subdivision of the stockholders' equity section of a balance sheet. Common stock, $10 stated value Retained earnings 8% Preferred stock, $100 par value Paid-in capital in excess of par Paid-in capital in excess of stated value Treasury stock-Common Paid-in capital from treasury stock

Car and Auto Sisters had retained earnings of $18,000 on the balance sheet but disclosed in the footnotes that $3,000 of retained earnings was restricted for plant expansion and $1,000 was restricted for bond repayments. Cash of $2,000 had been set aside for the plant expansion. How much of retained earnings is available for dividends?

Darman Company issued 700 shares of no-par common stock for $7,700. Which of the following journal entries would be made if the stock has a stated value of $2 per share?

Dividends are predominantly paid in

Identify which of the following items would be reported as additions (A) or deductions (D) in a Retained Earnings Statement. 1. Net Income 2. Net Loss 3. Cash Dividends 4. Stock Dividends

Crain Company issued 2,000 shares of its $5 par value common stock in payment of its attorney's bill of $30,000. The bill was for services performed in helping the company incorporate. Crain should record this transaction by debiting

The following data is available for Blaine Corporation at December 31, 2018: Based on the data, how many shares of common stock have been issued?

When preferred stock is cumulative, preferred dividends not declared in a period are

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

If common stock is issued for an amount greater than par value, the excess should be credited to

If the board of directors authorizes a $100,000 restriction of retained earnings for a future plant expansion, the effect of this action is to

The par value of stock issued for noncash assets is never a factor in determining the cost of the assets received.

Rex Company reported retained earnings at December 31, 2017, of $420,000. Reese had 180,000 shares of common stock outstanding throughout 2018. The following transactions occurred during 2018. 1. Net income was $295,000. 2. A cash dividend of $0.50 per share was declared and paid. 3. A 5% stock dividend was declared and distributed when the market price per share was $15 per share. Instructions Prepare a retained earnings statement for 2018.

Treasury Stock is a(n)