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

On January 2, 2015, Porter Corporation issued 30,000 shares of 5% cumulative preferred stock at $100 par value. On December 31, 2018, Porter Corporation declared and paid its first dividend. What dividends are the preferred stockholders entitled to receive in the current year before any distribution is made to common stockholders?

The _________________ measures the percentage of earnings a company distributes in the form of cash dividends to common stockholders.

Vega Corporation's December 31, 2018 balance sheet showed the following: 8% preferred stock, $20 par value, cumulative, 10,000 shares Vega declared and paid a $58,000 cash dividend on December 15, 2018. If the company's dividends in arrears prior to that date were $10,000, Vega's common stockholders received

On February 1, Barton Corporation issued 5,000 shares of its $20 par value preferred stock for $28 per share. Instructions Journalize the transaction.

James Corporation has the following accounts at December 31: Common Stock, $10 par 7,000 shares issued, $70,000; Paid-in Capital in Excess of Par $10,000; Retained Earnings $55,000; and Treasury Stock, 500 shares, $10,000. Prepare the stockholders' equity section of the balance sheet.

On January 1, Sway Corporation had 60,000 shares of $10 par value common stock outstanding. On March 17, the company declared a 15% stock dividend to stockholders of record on March 20. Market value of the stock was $13 on March 17. The stock was distributed on March 30. The entry to record the transaction of March 30 would include a

Lange Corporation issued 5,000 shares of stock. Instructions Prepare the entry for the issuance under the following assumptions. (a) The stock had a par value of $10 per share and was issued for a total of $65,000. (b) The stock had a stated value of $10 per share and was issued for a total of $65,000. (c) The stock had a par value of $10 per share and was issued to attorneys for services during in-corporation valued at $65,000. (d) The stock had a par value of $10 per share and was issued for land worth $65,000.

The major advantages of the corporate form of organization include (1) limited _________________ of owners, (2) continuous ____________________ and (3) ease of transferring ___________________.

The authorized stock of a corporation

A credit balance in retained earnings represents

Arm, 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, 2018. If the board of directors declares a $200,000 dividend, the

The payout ratio is computed by dividing cash dividends declared on common stock by

Under the corporate form of business organization

Accounting for treasury stock is done by the

Stock dividends and stock splits have the following effects on retained earnings:

Which of the following show the proper effect of a stock split and a stock dividend?

The effect of the declaration of a cash dividend by the board of directors is to

A corporation's own stock that has been reacquired by the corporation but not canceled is called ___________________ and is deducted from total _______________________ on the balance sheet.

If no-par stock is issued without a stated value, then

Stockholders elect the _______________, who in turn hire the ______________ of the company who have day to day responsibility for running the corporation.