Exam 19: Corporations: Stock Values, dividends, treasury Stocks, and Retained Earnings

If treasury stock is sold for less than cost,the entry to record the transaction would include a:

Treasury stock is:

Dexter Corporation has total paid-in capital of $160,000 and retained earnings of $60,000.It has 1,500 shares of $10 preferred stock with no dividends in arrears and 2,000 shares of $10 par value common stock.The book value of each share of common stock is:

Appropriations to retained earnings is:

When O'Rourke Corporation sells treasury stock for more than the original cost:

To record the purchase of treasury stock:

Using the following accounts: [1]Cash [2]Dividends payable [3]Preferred stock [4]Common stock [5]Dividend distributable [6]Paid-in capital in excess of par common stock [7]Paid-in capital in excess of par preferred stock [8]Paid-in capital from treasury stock [9]Retained earnings [10]Appropriation for plant expansion [11]Treasury stock [12]Income summary Indicate the account(s) to be debited and credited to record the following transactions. -Sold treasury stock at a price below cost when there was sufficient paid-in capital from treasury stock to absorb the difference between cost and selling price. Debit ________ & ________ & ________ Credit ________ & ________ & ________

In the closing process for corporations,Retained Earnings is used rather than Capital.

A retained earnings appropriation is a restriction of retained earnings by:

Baxter Corporation has 1,000 shares of $5 par value common stock issued and outstanding. Journalize the following Baxter transactions for 20XX: $\text {Feb.}$ $\quad$ 1 $\text {Purchased 2 PU shares of treasury stock at \$6.00.}$ $\quad$ $\quad$ $\quad$ 20 $\text { Declared a \$ 2.00 per share cash dividend payable on March 15}$ $\quad$ $\quad$ $\quad$$\text { to stockholders of record March 1.}$ $\text {Mar. }$ $\quad$ 15 $\text {Paid the cash dividend.}$ $\text {May}$ $\quad$ 10 $\text { Declared a 10 \% stock dividend. The market value of the stock is \$15.00 per share.}$ $\text {May}$ $\quad$ 30 $\text {Distributed the stock dividend.}$ $\text {Jun}$ $\quad$ 10 $\text { Reissued the treasury stock for \$ 9.00.}$

When treasury stock is purchased:

On the date of record,the journal entry would include:

Cody's Western Wear has 2,000 shares of $10 par value common stock outstanding.During the current year,the company distributed a 10% stock dividend.The market value of the stock at that time was $16 per share.Cody's total stockholders' equity should increase or decrease by:

Retained earnings represent past accumulations of net income.

When a stock dividend was declared above par the excess was ignored and only the par value was used.This error would cause:

Providing services to a credit customer was recorded with a debit to Cash and a credit to Retained Earnings.This error would cause:

The effect of a retained earnings appropriation is to:

Malcolm Corporation declared a dividend of $5 per share on 1,000 shares.The entry to record the transaction would be to:

The price at which shares are bought and sold on the open market is called:

A prior period adjustment is corrected to the ending balance of Retained Earnings.