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

The following information is available for Macon Corporation: Instructions Based on the preceding information, calculate each of the following: (a) Total paid-in capital. (b) Total stockholders' equity.

Paid-in capital from treasury stock would appear on a balance sheet under the category

In its first year of operations, Arid Corporation had the following transactions pertaining to its $20 par value preferred stock. Feb. 1 Issued 6,000 shares for cash at $43 per share. Nov. 1 Issued 3,000 shares for cash at $45 per share. Instructions (a) Journalize the transactions. (b) Indicate the amount to be reported for (1) preferred stock, and (2) paid-in capital in excess of par - preferred stock at the end of the year.

On October 10, the board of directors of Pattern Corporation declared a 15% stock dividend. On October 10, the company had 10,000 shares of $1 par common stock issued and outstanding with a market price of $16 per share. The stock dividend will be distributed on October 31 to shareholders of record on October 25. Journalize the entries needed for the declaration and distribution of the stock dividend.

In the stockholders' equity section of the balance sheet, the classification of capital stock consists of

When common stock is issued for services or non-cash assets, cost should be

Two classifications appearing in the paid-in capital section of the balance sheet are

A company's dividend record and its earnings

IFRS uses each of the following terms to describe retained earnings except

The cumulative effect of the declaration and payment of a cash dividend on a company's financial statements is to

If a corporation's stock is traded on the major stock exchanges, the corporation must generally report periodically to a federal agency known as the ____________________.

IFRS treats the purchase of treasury stock as any of the following except

Preferred stock has contractual preference over common stock in certain areas.

Each of the following is reported for common stock except the

A 3-for-1 common stock split will increase total stockholders' equity but reduce the par or stated value per share of common stock.

A small stock dividend is defined as

If a corporation declares a dividend based upon paid-in capital, it is known as a

Restricted retained earnings are available for preferred stock dividends but unavailable for common stock dividends.

Which of the following statements reflects the transferability of ownership rights in a corporation?

The effect of a stock dividend is to