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

Under the cost method, when treasury stock is purchased by the corporation, the par value and the price at which the stock was originally issued are important.

Kansas Company acquired a building valued at $210,000 for property tax purposes in exchange for 12,000 shares of its $5 par common stock. The stock is widely traded and sold for $15 per share. At what amount should the building be recorded by Kansas Company?

The par value per share of common stock represents the

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

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: Year 1: \ 10,000 Year 2: 45,000 Year 3: 90,000 Determine the dividends per share for preferred and common stock for the second year.

The excess of sales price of treasury stock over its cost should be credited to

Using the following accounts and balances, prepare the stockholders' equity section of the balance sheet. Fifty thousand shares of common stock are authorized, and 5,000 shares have been reacquired. Common Stock, \ 50 par \ 1,250,000 Paid-In Capital in Excess of Par 800,000 Paid-In Capital from Sale of Treasury Stock 42,000 Retained Earnings 4,350,000 Treasury Stock 155,000

All of the following are normally found in a corporation's stockholders' equity section except

One of the main disadvantages of the corporate form is the

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

Treasury stock that was purchased for $3,000 is sold for $3,500. As a result of these two transactions combined

The number of shares of outstanding stock is equal to the number of shares authorized minus the number of shares issued.

Paid-in capital may originate from real estate transactions.

Prepare entries to record the following selected transactions completed during the current fiscal year: