Question 1

A corporation has 200,000 shares of $10 par value common stock outstanding.The following selected transactions related to the company's stock took place during the current year:
  Prepare the journal entries to record these transactions.

Accepted Answer

The answer of A corporation has 200,000 shares of $10...

Question 2

On May 1,a company's board of directors declared a 10% stock dividend to be distributed on June 1 to the stockholders of record on May 21.The company had 250,000 shares of $10 par value common stock outstanding with a market value of $22 per share.Prepare the journal entries required on May 1,May 21,and June 1.

Accepted Answer

The answer of On May 1,a company's board of directors...

Question 3

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 shares...

Question 4

A corporation had the following stock outstanding when the company's board of directors declared a $95,000 cash dividend during the current year:
  Allocate the cash dividend between the preferred and common stockholders assuming the preferred stock is cumulative and nonparticipating and dividends are one year in arrears.

Accepted Answer

The answer of A corporation had the following stock outstanding...

Question 5

A company reported the following stockholders' equity on January 1 of the current year:
  Prepare journal entries for the following selected transactions related to this company's stock during the current year:

Accepted Answer

The answer of A company reported the following stockholders' equity...

Question 6

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 stock is...

Question 7

On July 31,a corporation reported the following stockholders' equity:
  On July 31,the market value of the corporation's stock was $15 per share.The directors were considering declaring a 10% or 30% stock dividend but wanted to know what effect each stock dividend would have on stockholders' equity.Calculate the balances in the following accounts for each proposed stock dividend distribution.

Accepted Answer

The answer of On July 31,a corporation reported the following...

Question 8

A company had the following stockholders' equity on January 1:
  On January 10,the company declared a 40% stock dividend to holders of record on January 25,to be distributed January 31.The market value of the stock on January 10 prior to the dividend was $20 per share.What is the book value per common share on February 1?

Accepted Answer

The answer of A company had the following stockholders' equity...

Question 9

A company has $100,000 of 10% noncumulative,nonparticipating,preferred stock outstanding and $150,000 of common stock outstanding.In the company's first year of operation,it paid no dividends,but during the second year,it paid cash dividends of $25,000.Compute the dividends to be distributed to (1) preferred shares and (2) common shares.

Accepted Answer

The answer of A company has $100,000 of 10% noncumulative,nonparticipating,preferred...

Question 10

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 11

A company was organized in January 2012 and has 2,000 shares of $100 par value,10%,nonparticipating preferred stock outstanding and 30,000 shares of $10 par value common stock outstanding.It has declared and paid cash dividends each year as shown below.Calculate the total dividends distributed to each class of stockholder under each of the assumptions given.

Accepted Answer

The answer of A company was organized in January 2012...

Question 12

For each of the following independent transactions (a) through (d),prepare the necessary journal entry:
(a) Declared a $0.40 per share cash dividend on 200,000 shares of preferred stock outstanding.
(b) Declared and distributed a 12% stock dividend on 800,000 shares of $5 par value common stock outstanding.Market price per common share on this date was $25.
(c) Declared and distributed a 2-for-1 stock split on 500,000 shares of $10 par value common stock outstanding.
(d) Declared and distributed a 30% stock dividend on 400,000 common shares of $5 par value common stock outstanding.Market price per common share on this date was $20.

Accepted Answer

The answer of For each of the following independent transactions...

Question 13

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 14

A company's only treasury stock transactions for the current year are as follows: (1) 1,000 shares of its common stock were purchased on June 1 for $40,000; (2) On July 1 it reissued 500 of these shares at $45 per share; (3) On August 1 it reissued the 500 remaining treasury shares at $38 per share.
(1) Prepare the journal entries required to record these transactions.
(2) Calculate the balance in Paid-in Capital,Treasury Stock,on September 1 assuming its beginning-year balance is zero.

Accepted Answer

The answer of A company's only treasury stock transactions for...

Question 15

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 stock is...

Question 16

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

Accepted Answer

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

Question 17

A corporation had the following stock outstanding when the company's board of directors declared a $95,000 cash dividend in the current year:
  Allocate the cash dividend between the preferred and common stockholders assuming the preferred stock is noncumulative and nonparticipating.

Accepted Answer

The answer of A corporation had the following stock outstanding...

Question 18

A corporation had stockholders' equity on January 1 as follows: common stock,$5 par value,1,000,000 shares authorized,500,000 shares issued; contributed capital in excess of par value,common stock,$1,000,000; retained earnings,$3,000,000.Prepare journal entries to record the following transactions:

Accepted Answer

The answer of A corporation had stockholders' equity on January...

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

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...

Quiz 11: Reporting and Analyzing Equity

A corporation has 200,000 shares of $10 par value common stock outstanding.The following selected transactions related to the company's stock took place during the current year: Prepare the journal entries to record these transactions.