Question 1

_____________________ is a class of stock assigned a value by the corporation in its charter.

Accepted Answer

The answer of _____________________ is a class of stock assigned...

Question 2

On January 10, a corporation purchased 5,000 shares of its own common stock at $17.50 per share. On August 4, a total of 1,000 treasury shares were sold at $19.00 per share. These are the only treasury stock transactions ever made by the corporation. Prepare the journal entries required on January 10 and August 4.

Accepted Answer

The answer of On January 10, a corporation purchased 5,000...

Question 3

On August 31, 2013, Gilliam Corporation's common stock is priced at $50 per share before any stock dividend, and the stockholders' equity section of its balance sheet appears as follows. Assume that the company declares and immediately distributes a 35% stock dividend.
  What is the total amount in the Retained Earnings account immediately after the stock dividend?

Accepted Answer

The answer of On August 31, 2013, Gilliam Corporation's common...

Question 4

On August 31, 2013, Gilliam Corporation's common stock is priced at $50 per share before any stock dividend, and the stockholders' equity section of its balance sheet appears as follows. Assume that the company declares and immediately distributes a 10% stock dividend.
  What is the total amount in the Retained Earning account immediately after the stock dividend?

Accepted Answer

The answer of On August 31, 2013, Gilliam Corporation's common...

Question 5

_______________________________ is the total amount of cash and other assets received by the corporation from its stockholders in exchange for common stock.

Accepted Answer

The answer of _______________________________ is the total amount of cash...

Question 6

The least amount that the buyers of stock must contribute to the corporation or be subject to paying at a future date is called ____________________________.

Accepted Answer

The answer of The least amount that the buyers of...

Question 7

________________________ is the number of shares that a corporation's charter allows it to sell.

Accepted Answer

The answer of ________________________ is the number of shares that...

Question 8

_________________________ has special rights that give it priority or senior status over common stock in one or more areas such as receiving dividends or for the distribution of assets if the corporation is liquidated.

Accepted Answer

The answer of _________________________ has special rights that give it...

Question 9

Record the following transactions of a company in general journal form: (a) Reacquired 8,000 of its own $10 par value common stock at $40 cash per share. The stock was originally issued at $15 per share.
(b) Sold 2,000 shares of the stock reacquired under part (a) at $43 cash per share.
(c) Sold 3,000 shares of the stock reacquired under part (a) at $39 cash per share.

Accepted Answer

The answer of Record the following transactions of a company...

Question 10

_____________________ is the amount at which a stock is bought and sold.

Accepted Answer

The answer of _____________________ is the amount at which a...

Question 11

A company sold stock for $733,000. The shares had a par value of $6.26 each. After the transaction, the paid-in capital in excess of par common stock account had a balance of $420,000. How many shares did the company sell?

Accepted Answer

The answer of A company sold stock for $733,000. The...

Question 12

_____________________ is a general term that refers to any shares issued to obtain owner financing in a corporation.

Accepted Answer

The answer of _____________________ is a general term that refers...

Question 13

No-par stock to which the directors assign a value per share is called _______________________.

Accepted Answer

The answer of No-par stock to which the directors assign...

Question 14

A company's outstanding stock consists of (a) 67,000 shares of cumulative 5% preferred stock with a $20 par value and (b) 95,000 shares of common stock with a $1 par value. During its first four years of operation, the corporation declared and paid the following total cash dividends:
 $$\begin{array} { c c } 
2013 & \$ 0 \
2014 & 50,000 \
2015 & 180,000 \
2016 & 205,000
\end{array}$$ What is the amount of dividends that the common stockholders receive for all years presented?

Accepted Answer

The answer of A company's outstanding stock consists of (a)...

Question 15

The _______________________ protects stockholders' proportional interest in a corporation by allowing them to purchase their proportional share of any common stock later issued by the corporation.

Accepted Answer

The answer of The _______________________ protects stockholders' proportional interest in...

Question 16

A corporation is responsible for its own acts and debts as the corporation is considered a ____________________________________.

Accepted Answer

The answer of A corporation is responsible for its own...

Question 17

_______________________ generally consist of a company's cumulative net income less any net losses and dividends declared since its inception.

Accepted Answer

The answer of _______________________ generally consist of a company's cumulative...

Question 18

The total amount of cash and other assets the corporation receives from its stockholders in exchange for common stock is called __________________________.

Accepted Answer

The answer of The total amount of cash and other...

Question 19

Stock that is not assigned a value per share by the corporate charter is called __________________.

Accepted Answer

The answer of Stock that is not assigned a value...

Question 20

_______________________ are responsible for and have final authority for managing a corporation's activities.

Accepted Answer

The answer of _______________________ are responsible for and have final...

Quiz 11: Accounting for Equity