Exam 11: Contributed Capital

The board of directors carries out the day-to-day operations of the business.

A corporation has 10,000 shares of 8 percent cumulative preferred stock and 20,000 shares of common stock outstanding.Par value for each is $100.No dividends were paid last year,but this year a $200,000 dividend is paid.How much of this $200,000 goes to the holders of common stock?

Which of the following stock terms is least like the others?

On its December 31,2009,balance sheet,Montrose Corporation reported its stockholders' equity as follows: Common stock- \ 5 par value, 100,000 shares authorized, 50,000 shares issued and outstanding \2 50,000 Additional paid-in capital 125,000 Retained earnings 400,000 Total stockholders' equity \7 75,000 During 2010,the following transactions occurred: Reacquired 2,500 shares at $7 per share. Sold 1,200 shares of treasury stock at $8 per share. Sold 500 shares of treasury stock at $6 per share. Net income for 2010 amounted to $80,000. a. Prepare the entries in journal form for the three transactions involving treasury stock. (Omit explanations.) b. Compute the amount of total contributed capital to be reported on the December 31, 2010, balance sheet.

Beckham Corporation has 3,000 shares of $100 par value,7 percent cumulative preferred stock,and 10,000 shares of $10 par value common stock outstanding during its first five years of operation.Beckham Corporation paid cash dividends as follows: 2006,$30,000; 2007,$0; 2008,$65,000; 2009,$30,000; 2010,$15,000.The amount of dividends received by the common stockholders during 2009 was

Return on equity is measured in terms of

Callable preferred stock is preferred stock that may be redeemed or retired at the option of the stockholder.

A company purchases 400 shares of its $50 par value common stock at $55 per share.It then reissues 60 shares at $58 per share.The entry upon reissue of the stock would be:

Prepare entries in journal form without explanations to record the following transactions involving Dailey Corporation's $5 par value common stock: Apr. 1 Purchased 500 shares of its own common stock for \ 12 , the current market price. This is the first transaction involving its own stock engaged in by the company. May 1 Sold 100 of the shares purchased on April 1 for \ 15 . June 1 Retired 100 of the shares purchased on April 1 . The original issue price was \ 8 . July 1 Sold 200 of the shares purchased on April 1 for \ 10 .

The information that follows pertains to stockholders' equity data of Delano Corporation on December 31,20xx.Compute the amount of each item indicated by a letter in the listing below.

An advantage of the corporate form of business is