Question 1

The following transactions took place for the XYZ Corporation:
November 12 - Declared a total cash dividend of $45,000 for stockholders of record November 20 payable on December 1. Record the journal entries required by these events.
Briefly describe the significance of November 20.

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Question 2

A company had stock outstanding as follows during each of its first three years of operations: 2,500 shares of 10%,
$100 par, cumulative preferred stock and 50,000 shares of $10 par common stock. The amounts distributed as dividends are presented below. Determine the total and per-share dividends for each class of stock for each year by completing the schedule.

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The answer of A company had stock outstanding as follows...

Question 3

A corporation was organized on January 1 of the current year, with an authorization of 20,000 shares of 4%, $12 par preferred stock, and 100,000 shares of $3 par common stock.
The following selected transactions were completed during the first year of operations:
Jan. 3 Issued 15,000 shares of common stock at $23 per share for cash.
31 Issued 200 shares of common stock to an attorney in payment of legal fees for organizing the corporation. The value of the stock at the time of payment was $25 per share.
Feb. 24 Issued 20,000 shares of common stock in exchange for land, buildings, and equipment with fair market prices of $65,000, $120,000, and $45,000 respectively.
Mar. 15 Issued 2,000 shares of preferred stock at $56 for cash.
Journalize the transactions.

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The answer of A corporation was organized on January 1...

Question 4

Prepare entries to record the following:
a) Issued 1,000 shares of $15 par common stock at $54 for cash.
b) Issued 1,400 shares of no-par common stock in exchange for equipment with a fair market price of $24,000.
c) Purchased 100 shares of treasury stock at $26.
d) Sold 100 shares of treasury stock purchased in c) at $29.

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a) Issued...

Question 5

Vincent Corporation has 100,000 shares of $100 par common stock outstanding. On June 30, Vincent Corporation declared a 5% stock dividend to be issued on July 30 to stockholders of record July 15. The market price of the stock was $132 a share on June 30. Journalize the entries required on June 30, July 15, and July 30.

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The answer of Vincent Corporation has 100,000 shares of $100...

Question 6

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.

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

Question 7

The following account balances appear on the balance sheet of Osgood Industries:
Common Stock 300,000 shares authorized, $100 par): $10,000,000
Paid­In Capital in Excess of Par-Common Stock: $2,000,000
Retained Earnings: $45,000,000
The board of directors declared a 2% stock dividend when the market price of the stock was $135 a share.
Required:
1) Journalize the entries to record
a) the declaration of the dividend, capitalizing an amount equal to market value
b) the issuance of the stock certificates
2) Determine the following amounts before the stock dividend was declared:
a) Total paid-in capital
b) Total retained earnings
c) Total stockholders' equity
3) Determine the following amounts after the stock dividend was declared and closing entries were recorded at the end of the year:
a) Total paid-in capital
b) Total retained earnings
c) Total stockholders' equity

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The answer of The following account balances appear on the...

Question 8

Solar Company has 600,000 shares of $75 par common stock outstanding. On February 13, Solar declared a 3% stock dividend to be issued on April 30 to stockholders of record on March 14. The market price of the stock was $90 per share on February 13.
Journalize the entries required on February 13, March 14, and April 30.

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The answer of Solar Company has 600,000 shares of $75...

Question 9

Sabas Company has 40,000 shares of $100 par, 1% preferred stock and 100,000 shares of $50 par common stock. The following amounts were distributed as dividends:
Year 1:
$ 50,000
Year 2:
90,000
Year 3:
130,000
Determine the dividends per share for preferred and common stock for each year.

Accepted Answer

The answer of Sabas Company has 40,000 shares of $100...

Question 10

On April 10, a company acquired land in exchange for 1,000 shares of $20 par common stock with a current market price of $73. Journalize this transaction.

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The answer of On April 10, a company acquired land...

Question 11

Sabas Company has 20,000 shares of $100 par, 1% noncumulative preferred stock and 100,000 shares of $50 par common stock. The following amounts were distributed as dividends:
Year 1:
$10,000
Year 2:
15,000
Year 3:
90,000
Determine the dividends per share for preferred and common stock for each year.

Accepted Answer

The answer of Sabas Company has 20,000 shares of $100...

Question 12

On May 1, 10,000 shares of $10 par common stock were issued at $30, and on May 7, 5,000 shares of $50 par preferred stock were issued at $111. Journalize the entries for May 1 and May 7.

Accepted Answer

The answer of On May 1, 10,000 shares of $10...

Question 13

On January 1, Year 1, a company had the following transactions:
- Issued 10,000 shares of $2.00 par common stock for $12.00 per share.
- Issued 3,000 shares of $50 par, 6% cumulative preferred stock for $70 per share.
- Purchased 1,000 shares of previously issued common stock for $15.00 per share.
The company had the following dividend information available:
Year 1 - No dividend paid
Year 2 - Paid a $2,000 total dividend Year 3 - Paid a $20,000 total dividend Year 4 - Paid a $25,000 total dividend
Using the following format, fill in the correct values for each year:

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The answer of On January 1, Year 1, a company...

Question 14

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:  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 15

On February 13, Epperson Company issue for cash 75,000 shares of no-par common stock with a stated value of $125) at $140. On September 9, Epperson issued at par 15,000 shares of 1%, $60 par preferred stock at par for cash. On November 23, Epperson issued for cash 8,000 shares of 1%, $60 par preferred stock at $70.
Journalize the entries to record the February 13, September 9, and November 23 transactions.

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The answer of On February 13, Epperson Company issue for...

Question 16

On April 10, Maranda Corporation issued for cash 11,000 shares of no-par common stock at $25. On May 5, Maranda issued at par 1,000 shares of 4%, $50 par preferred stock for cash. On May 25, Maranda issued for cash 15,000 shares of 4%, $50 par preferred stock at $55.
Journalize the entries to record the April 10, May 5, and May 25 transactions.

Accepted Answer

The answer of On April 10, Maranda Corporation issued for...

Question 17

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 each year.

Accepted Answer

The answer of Sabas Company has 20,000 shares of $100...

Question 18

On February 1 of the current year, Motor, Inc. issued 700 shares of $2 par common stock to an attorney in return for preparing and filing the articles of incorporation. The value of the services is $9,600. Journalize this transaction.

Accepted Answer

The answer of On February 1 of the current year,...

Question 19

The dates of importance in connection with a cash dividend of $50,000 on a corporation's common stock are
January 15, February 15, and March 15. Journalize the entries required on each date.

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

Question 20

Indicate whether the following actions would +) increase, -) decrease, or 0) not affect a company's total assets, liabilities, and stockholders' equity.

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The answer of Indicate whether the following actions would +)...

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

The following transactions took place for the XYZ Corporation: November 12 - Declared a total cash dividend of $45,000 for stockholders of record November 20 payable on December 1. Record the journal entries required by these events. Briefly describe the significance of November 20.

Sabas Company has 40,000 shares of $100 par, 1% preferred stock and 100,000 shares of $50 par common stock. The following amounts were distributed as dividends: Year 1: $ 50,000 Year 2: 90,000 Year 3: 130,000 Determine the dividends per share for preferred and common stock for each year.

On April 10, a company acquired land in exchange for 1,000 shares of $20 par common stock with a current market price of $73. Journalize this transaction.

On May 1, 10,000 shares of $10 par common stock were issued at $30, and on May 7, 5,000 shares of $50 par preferred stock were issued at $111. Journalize the entries for May 1 and May 7.

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: Determine the dividends per share for preferred and common stock for each year.

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 each year.

On February 1 of the current year, Motor, Inc. issued 700 shares of $2 par common stock to an attorney in return for preparing and filing the articles of incorporation. The value of the services is $9,600. Journalize this transaction.

The dates of importance in connection with a cash dividend of $50,000 on a corporation's common stock are January 15, February 15, and March 15. Journalize the entries required on each date.

Indicate whether the following actions would +) increase, -) decrease, or 0) not affect a company's total assets, liabilities, and stockholders' equity.