Question 1

A restriction/appropriation of retained earnings

Accepted Answer

A)  decreases total assets 
B)  increases total retained earnings 
C)  decreases total retained earnings 
D)  has no effect on total retained earnings 
A)  decreases total assets 
B)  increases total retained earnings 
C)  decreases total retained earnings 
D)  has no effect on total retained earnings

Question 2

Prepare entries to record the following:

Accepted Answer

(a)
 @#IMG-DLM& (b)

Question 3

Macy Company has 10,000 shares of 2% cumulative preferred stock of $50 par and 25,000 shares of $75 par common stock. The following amounts were distributed as dividends:
   Required:
Determine the dividends per share for preferred and common stock for each year.

Accepted Answer

The answer of Macy Company has 10,000 shares of 2%...

Question 4

On May 10, a company issued for cash 1,500 shares of no-par common stock (with a stated value of $2) at $14, and on May 15, it issued for cash 2,000 shares of $15 par preferred stock at $58.
Journalize the entries for May 10 and 15, assuming that the common stock is to be credited with the stated value.

Accepted Answer

The answer of On May 10, a company issued for...

Question 5

The Sneed Corporation issues 10,000 shares of $50 par value preferred stock for cash at $70 per share. The entry to record the transaction will consist of a debit to Cash for $700,000 and a credit or credits to

Accepted Answer

A)  Preferred Stock for $700,000. 
B)  Preferred stock for $500,000 and Paid-in Capital in Excess of Par Value-Preferred Stock for $200,000. 
C)  Preferred Stock for $500,000 and Retained Earnings for $200,000. 
D)  Paid-in Capital from Preferred Stock for $700,000. 
A)  Preferred Stock for $700,000. 
B)  Preferred stock for $500,000 and Paid-in Capital in Excess of Par Value-Preferred Stock for $200,000. 
C)  Preferred Stock for $500,000 and Retained Earnings for $200,000. 
D)  Paid-in Capital from Preferred Stock for $700,000.

Question 6

Marcos Company, which had 35,000 shares of common stock outstanding, declared a 4-for-1 stock split.
Required:

Accepted Answer

(1) 140,000 shares (

Question 7

Which of the following statements concerning taxation is accurate?

Accepted Answer

A)  Corporations pay federal income taxes but not state income taxes. 
B)  Corporations pay federal and state income taxes. 
C)  Only the owners must pay taxes on corporate income. 
D)  Corporations pay income taxes but their owners do not. 
A)  Corporations pay federal income taxes but not state income taxes. 
B)  Corporations pay federal and state income taxes. 
C)  Only the owners must pay taxes on corporate income. 
D)  Corporations pay income taxes but their owners do not.

Question 8

The cost of treasury stock is deducted from total paid-in capital and retained earnings in determining total stockholders' equity.

Accepted Answer

A) True 
 B)False

Question 9

The cumulative effect of the declaration and payment of a cash dividend on a company's financial statements is to

Accepted Answer

A)  decrease total liabilities and stockholders' equity. 
B)  increase total expenses and total liabilities. 
C)  increase total assets and stockholders' equity. 
D)  decrease total assets and stockholders' equity. 
A)  decrease total liabilities and stockholders' equity. 
B)  increase total expenses and total liabilities. 
C)  increase total assets and stockholders' equity. 
D)  decrease total assets and stockholders' equity.

Question 10

When no-par stock is issued, the Common Stock account is credited for the selling price of the stock issued.

Accepted Answer

A) True 
 B)False

Question 11

What is the total stockholders' equity based on the following data?

Accepted Answer

A)  $935,000 
B)  $885,000 
C)  $835,000 
D)  $560,000 
A)  $935,000 
B)  $885,000 
C)  $835,000 
D)  $560,000

Question 12

The dates of importance in connection with a cash dividend of $65,000 on a corporation's common stock are January 15, February 15, and March 15. Journalize the entries required on each date.

Accepted Answer

The answer of The dates of importance in connection with...

Question 13

Which of the following statements is not true about a 2-for-1 split?

Accepted Answer

A)  Par value per share is reduced to half of what it was before the split. 
B)  Total contributed capital increases. 
C)  The market price will probably decrease. 
D)  A stockholder with ten shares before the split owns twenty shares after the split. 
A)  Par value per share is reduced to half of what it was before the split. 
B)  Total contributed capital increases. 
C)  The market price will probably decrease. 
D)  A stockholder with ten shares before the split owns twenty shares after the split.

Question 14

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

Accepted Answer

A)  management. 
B)  board of directors. 
C)  employees. 
D)  stockholders. 
A)  management. 
B)  board of directors. 
C)  employees. 
D)  stockholders.

Question 15

The reduction of par or stated value of stock by issuance of a proportionate number of additional shares is termed a

Accepted Answer

A)  liquidating dividend 
B)  stock split 
C)  stock option 
D)  preferred dividend 
A)  liquidating dividend 
B)  stock split 
C)  stock option 
D)  preferred dividend

Question 16

Prepare entries to record the following:

Accepted Answer

(a)
 @#IMG-DLM& (b)

Question 17

What is the total stockholders' equity based on the following account balances?

Accepted Answer

A)  $740,000 
B)  $730,000 
C)  $720,000 
D)  $640,000 
A)  $740,000 
B)  $730,000 
C)  $720,000 
D)  $640,000

Question 18

The excess of issue price over par of common stock is termed a(n)

Accepted Answer

A)  discount 
B)  income 
C)  deficit 
D)  premium 
A)  discount 
B)  income 
C)  deficit 
D)  premium

Question 19

A disadvantage of the corporate form of business entity is

Accepted Answer

A)  mutual agency for stockholders 
B)  unlimited liability for stockholders 
C)  corporations are subject to more governmental regulations 
D)  the ease of transfer of ownership 
A)  mutual agency for stockholders 
B)  unlimited liability for stockholders 
C)  corporations are subject to more governmental regulations 
D)  the ease of transfer of ownership

Question 20

The declaration and issuance of a stock dividend does affect the total amount of a corporation's assets, liabilities, or stockholders' equity.

Accepted Answer

A) True 
 B)False

A restriction/appropriation of retained earnings

Prepare entries to record the following:

Macy Company has 10,000 shares of 2% cumulative preferred stock of $50 par and 25,000 shares of $75 par common stock. The following amounts were distributed as dividends: Required: Determine the dividends per share for preferred and common stock for each year.

The Sneed Corporation issues 10,000 shares of $50 par value preferred stock for cash at $70 per share. The entry to record the transaction will consist of a debit to Cash for $700,000 and a credit or credits to

Marcos Company, which had 35,000 shares of common stock outstanding, declared a 4-for-1 stock split. Required:

Which of the following statements concerning taxation is accurate?

The cost of treasury stock is deducted from total paid-in capital and retained earnings in determining total stockholders' equity.

The cumulative effect of the declaration and payment of a cash dividend on a company's financial statements is to

When no-par stock is issued, the Common Stock account is credited for the selling price of the stock issued.

What is the total stockholders' equity based on the following data?

The dates of importance in connection with a cash dividend of $65,000 on a corporation's common stock are January 15, February 15, and March 15. Journalize the entries required on each date.

Which of the following statements is not true about a 2-for-1 split?

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

The reduction of par or stated value of stock by issuance of a proportionate number of additional shares is termed a

Prepare entries to record the following:

What is the total stockholders' equity based on the following account balances?

The excess of issue price over par of common stock is termed a(n)

A disadvantage of the corporate form of business entity is

The declaration and issuance of a stock dividend does affect the total amount of a corporation's assets, liabilities, or stockholders' equity.

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley, Internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 11: Corporations: Organization, Stock Transactions, and Dividends

A restriction/appropriation of retained earnings

Prepare entries to record the following:

Macy Company has 10,000 shares of 2% cumulative preferred stock of $50 par and 25,000 shares of $75 par common stock. The following amounts were distributed as dividends: Required: Determine the dividends per share for preferred and common stock for each year.

The Sneed Corporation issues 10,000 shares of $50 par value preferred stock for cash at $70 per share. The entry to record the transaction will consist of a debit to Cash for $700,000 and a credit or credits to

Marcos Company, which had 35,000 shares of common stock outstanding, declared a 4-for-1 stock split. Required:

Which of the following statements concerning taxation is accurate?

The cost of treasury stock is deducted from total paid-in capital and retained earnings in determining total stockholders' equity.

The cumulative effect of the declaration and payment of a cash dividend on a company's financial statements is to

When no-par stock is issued, the Common Stock account is credited for the selling price of the stock issued.

What is the total stockholders' equity based on the following data?

The dates of importance in connection with a cash dividend of $65,000 on a corporation's common stock are January 15, February 15, and March 15. Journalize the entries required on each date.

Which of the following statements is not true about a 2-for-1 split?

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

The reduction of par or stated value of stock by issuance of a proportionate number of additional shares is termed a

Prepare entries to record the following:

What is the total stockholders' equity based on the following account balances?

The excess of issue price over par of common stock is termed a(n)

A disadvantage of the corporate form of business entity is

The declaration and issuance of a stock dividend does affect the total amount of a corporation's assets, liabilities, or stockholders' equity.

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley, Internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Filters