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

Match the following stockholders' equity concepts to the appropriate term (a-h).​ -Cash distribution of a company's earnings to stockholders A)cash dividend B)date of record C)Stock Dividends Distributable D)date of declaration E)treasury stock F)preferred stock G)date of payment H)Paid-In Capital in Excess of Par

The price at which a stock can be sold depends upon a number of factors. Which statement below is not one of those factors?

Under the corporate form of business organization,

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 -$15,000

Journalize the following selected transactions completed during the current fiscal year:

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 -$150,000

How is treasury stock shown on the balance sheet?

A corporation was organized on January 1 of the current year, with an authorization of 20,000 shares of 4%, $12 par preferred stock, and 100,000 shares of $3 par common stock.The following selected transactions were completed during the first year of operations: Journalize the transactions.

A company with 100,000 authorized shares of $4 par common stock issued 40,000 shares at $8. Subsequently, the company declared a 4% stock dividend on a date when the market price was $12 a share. What is the amount transferred from the retained earnings account to paid-in capital accounts as a result of the stock dividend?

Sabas Company has 20,000 shares of $100 par, 1% noncumulative preferred stock and 100,000 shares of $50 par common stock. The following amounts were distributed as dividends: Determine the dividends per share for preferred and common stock for each year.

Oregon, Inc. reported net income of $105,000. During the current year, the company had 5,000 shares of $100 par, 5% preferred stock and 10,000 of $5 par common stock outstanding. The company declared and paid all preferred dividends. Oregon's earnings per share is

Which of the following is not a prerequisite to paying a cash dividend?

Match the following stockholders' equity concepts to the appropriate term (a-h).​ -The date that is used to determine the owners of stock who will receive the current dividend A)cash dividend B)date of record C)Stock Dividends Distributable D)date of declaration E)treasury stock F)preferred stock G)date of payment H)Paid-In Capital in Excess of Par

The issuance of common stock affects both paid-in capital and retained earnings.

The charter of a corporation provides for the issuance of 100,000 shares of common stock. Assume that 30,000 shares were originally issued and 5,000 were subsequently reacquired. What is the number of shares outstanding?

Match each of the following stockholders' equity concepts to the appropriate term (a-h). -Group which meets periodically to establish corporate policies A)articles of incorporation B)limited liability C)bylaws D)corporation E)public corporation F)board of directors G)private corporation H)dividends

A corporation, which had 18,000 shares of common stock outstanding, declared a 3-for-1 stock split.(a)What will be the number of shares outstanding after the split? (b)If the common stock had a market price of $240 per share before the stock split, what would be an approximate market price per share after the split? (c)Journalize the entry to record the stock split.

Solar Company has 600,000 shares of $75 par common stock outstanding. On February 13, Solar declared a 3% stock dividend to be issued on April 30 to stockholders of record on March 14. The market price of the stock was $90 per share on February 13.​ Journalize the entries required on February 13, March 14, and April 30.

The balance in Retained Earnings should be interpreted as representing surplus cash left over for dividends.

Significant changes in stockholders' equity are reported in