Exam 12: Corporations: Organization, Stock Transactions, and Dividends

Financial statement data for this year and last year for Hanscombe Corp. are as follows: Calculate earnings per share for each year.

Cash dividends are normally paid on shares of treasury stock.

A company with 100,000 authorized shares of $4 par common stock issued 40,000 shares at $8. Subsequently, the company declared a 2% stock dividend on a date when the market price was $11 a share. What is the amount transferred from the retained earnings account to paid-in capital accounts as a result of the stock dividend?

The Sneed Corporation issues 10,000 shares of $50 par preferred stock for cash at $75 per share. The entry to record the transaction will consist of a debit to Cash for $750,000 and a credit or credits to

Texas Inc. has 10,000 shares of 6%, $125 par value cumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31. What is the annual dividend on the preferred stock?

A corporation has 50,000 shares of $25 par stock outstanding. If the corporation issues a 3-for-1 stock split, the number of shares outstanding after the split will be

The par value per share of common stock represents the

Sabas Company has 20,000 shares of $100 par, 2% cumulative preferred stock and 100,000 shares of $50 par common stock. The following amounts were distributed as dividends: Determine the dividends in arrears for preferred stock for the second year.

On April 10, a company acquired land in exchange for 1,000 shares of $20 par common stock with a current market price of $73. Journalize this transaction.

The net increase or decrease in Retained Earnings for a period is recorded by closing entries.

Match each of the following stockholders' equity concepts to the appropriate term (a-h). -A legal entity, separate from the people who create and operate it A)articles of incorporation B)limited liability C)bylaws D)corporation E)public corporation F)board of directors G)private corporation H)dividends

Those most responsible for the major policy decisions of a corporation are the

For the current year ended, ABC had the following transactions: - Issued 10,000 shares of $2.00 par value common stock for $12.00 per share.- Issued 3,000 shares of $50 par value 6% preferred stock for $70 per share.- Purchased 1,000 shares of previously issued common stock for $15.00 per share.- Reported net income of $200,000.- Declared and paid a total dividend of $40,000.​ Assume that retained earnings had a beginning balance of $75,000.The company does not have any stock outstanding as of the beginning of the current year.​ a.Treasury stock b.Retained earnings c.Preferred stock d.Excess of issue price over par (preferred)e.Common stock f.Total paid-in capital g.Excess of issue price over par (common)h.Total stockholders' equity -$235,000

At December 31, Idaho Company had the following ending account balances: Retained Earnings: $250,000 Preferred Stock ($100 par, 7% cumulative, 10,000 authorized, 5,000 issued and outstanding): $500,000 Treasury Stock: $40,000 Paid-In Capital in Excess of Par-Common Stock: $625,000 Paid-In Capital in Excess of Par-Preferred Stock: $50,000 Common Stock ($5 par value, 500,000 shares authorized, 105,000 issued): $525,000 Prepare the stockholders' equity section of the balance sheet in good form with all of the required disclosures.

On January 1, Vermont Corporation had 40,000 shares of $10 par value common stock issued and outstanding. All 40,000 shares had been issued in a prior period at $20.00 per share. On February 1, Vermont purchased 3,750 shares of treasury stock for $24 per share and later sold the treasury shares for $21 per share on March 1.​ The journal entry to record the purchase of the treasury shares on February 1 would include a

Which of the following would appear as a prior period adjustment?

The amount of capital paid in by the stockholders of the corporation is called legal capital.

One of the prerequisites to paying a cash dividend is sufficient retained earnings.

Treasury stock that had been purchased for $5,600 last month was reissued this month for $8,500. The journal entry to record the reissuance would include a credit to

Which of the following is the appropriate general journal entry to record the declaration of cash dividends?