Question 1

Financial statement data for this year and last year for Hanscombe Corp. are as follows: $\begin{array}{lrr} 
& \text { Current Year}& \text { Last Year } \
\text { Net income } & \$ 5,600,500 & \$ 4,988,000 \
\text { Preferred dividends } & 60,000 & 60,000 \
\text { Average number of common shares outstanding } & 125,000 & 110,000
\end{array}$  
Calculate earnings per share for each year.

Accepted Answer

The answer of Financial statement data for this year and...

Question 2

On April 1, 10,000 shares of $5 par common stock were issued at $22, and on April 7, 5,000 shares of $50 par preferred stock were issued at $104. What are the entries for April 1 and 7?

Accepted Answer

- The April 1 entry correctly reflects the issuance of 10,000 shares of common stock at $22 per share. The common stock account is credited for the par value of the shares issued ($5 x 10,000 = $50,000), and the remaining amount received over par ($22 - $5 = $17 x 10,000 = $170,000) is credited to the account Paid-In Capital in Excess of Par-Common Stock.
- The April 7 entry correctly reflects the issuance of 5,000 shares of preferred stock at $104 per share. The preferred stock account is credited for the par value of the shares issued ($50 x 5,000 = $250,000), and the remaining amount received over par ($104 - $50 = $54 x 5,000 = $270,000) is credited to the account Paid-In Capital in Excess of Par-Preferred Stock. The total cash received on this date is $520,000.

Question 3

Financial statement data for this year and last year for Hanscombe Corp. are as follows:   $$\begin{array} { l r r } 
& \text { Current Year } & \text { Last Year } \
\text { Net income } & \$ 5,600,500 & \$ 4,988,000 \
\text { Preferred dividends } & 60,000 & 60,000 \
\text { Average number of common shares outstanding } & 125,000 & 110,000
\end{array}$$  
Earnings per share for each year were

Accepted Answer

Earnings per share (EPS) is calculated as (Net Income - Preferred Dividends) / Average Number of Common Shares Outstanding. For the current year: (5,600,500 - 60,000) / 125,000 = 44.32. For last year: (4,988,000 - 60,000) / 110,000 = 44.80.

Question 4

Alma Corp. issues 1,000 shares of $10 par common stock at $14 per share. Journalize the transaction.

Accepted Answer

The answer of Alma Corp. issues 1,000 shares of $10...

Question 5

Nexis Corp. issues 1,000 shares of $15 par value common stock at $22 per share. Journalize the transaction.

Accepted Answer

The answer of Nexis Corp. issues 1,000 shares of $15...

Question 6

Using the following accounts and balances, prepare the stockholders' equity section of the balance sheet. Fifty thousand shares of common stock are authorized, and 5,000 shares have been reacquired. 
$$\begin{array} { l r } 
\text { Common Stock, } \$ 50 \text { par } & \$ 1,250,000 \
\text { Paid-In Capital in Excess of Par } & 800,000 \
\text { Paid-In Capital from Sale of Treasury Stock } & 42,000 \
\text { Retained Earnings } & 4,350,000 \
\text { Treasury Stock } & 155,000
\end{array}$$  
What is the total amount of paid-in capital that would be reported on the statement of stockholders' equity?

Accepted Answer

The total amount of paid-in capital is the sum of Common Stock ($1,250,000), Paid-In Capital in Excess of Par ($800,000), and Paid-In Capital from Sale of Treasury Stock ($42,000), which equals $2,092,000.

Question 7

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. What is the amount of paid-in capital in stated value at May 10 and paid-in capital in excess of par at May 15, assuming that the common stock is to be credited with the stated value?

Accepted Answer

For the common stock issued on May 10: 
- Number of shares: 1,500 
- Stated value: $2 
- Total stated value = 1,500 x $2 = $3,000 
- Total amount received = 1,500 x $14 = $21,000 
- Paid-in capital in stated value = $3,000

For the preferred stock issued on May 15: 
- Number of shares: 2,000 
- Par value: $15 
- Total par value = 2,000 x $15 = $30,000 
- Total amount received = 2,000 x $58 = $116,000 
- Paid-in capital in excess of par = $116,000 - $30,000 = $86,000

Therefore, the total paid-in capital in stated value and paid-in capital in excess of par are as follows: 
- Paid-in capital in stated value as of May 10: $3,000 
- Paid-in capital in excess of par as of May 15: $86,000 
The correct answer is C.

Question 8

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. What is the amount of the debit to Cash on May 1 and May 7?

Accepted Answer

On May 1, 10,000 shares of common stock were issued at $30 each, resulting in a cash debit of $300,000 (10,000 shares x $30). On May 7, 5,000 shares of preferred stock were issued at $111 each, resulting in a cash debit of $555,000 (5,000 shares x $111).

Question 9

At December 31, Idaho Company had the following ending account balances: ​
Retained Earnings: $250,000
Preferred Stock ($100 par, 7% cumulative, 10,000 authorized, 5,000 issued and outstanding): $500,000
Treasury Stock: $40,000
Paid-In Capital in Excess of Par-Common Stock: $625,000
Paid-In Capital in Excess of Par-Preferred Stock: $50,000
Common Stock ($5 par value, 500,000 shares authorized, 105,000 issued): $525,000
​
What is the total amount of paid-in capital that would be reported on the statement of stockholders' equity at December 31?

Accepted Answer

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Question 10

The Sneed Corporation issues 10,000 shares of $50 par preferred stock for cash at $75 per share. Journalize the entry to record the sale.

Accepted Answer

The answer of The Sneed Corporation issues 10,000 shares of...

Question 11

Match between columns
                        Premises:  $150,000
 $100,000
 $60,000
 $20,000
 $235,000
 $330,000
 $550,000
 $15,000

Accepted Answer

The Answer of Treasury stock and Retained earnings and Preferred is...

Question 12

Match between columns
                        Premises:  Equity account reflecting shares “owed” to stockholders
 Shares of common stock that were issued and then reacquired by a company
 Owners of this class of stock are entitled to receive dividends first
 Cash distribution of a company’s earnings to stockholders
 Account used when shares are issued for an amount greater than par value
 The day of the event that creates a liability to company
 The date that is used to determine the owners of stock who will receive the current dividend
 The date when dividends are actually distributed to stockholders

Accepted Answer

The Answer of cash dividend and date of record and is...

Question 13

Match between columns
                        Premises:  The account used to record the difference when issue price exceeds par value of stock
 The dollar amount assigned to each share of stock
 The number of shares currently held by stockholders
 A class of stock having first rights to dividends of a corporation
 The maximum number of shares a company can issue to shareholders
 The number of shares sold to stockholders
 A class of stock that provides no preference rights to shareholders
 A financial institution that records and maintains records of another company's stockholders.

Accepted Answer

The Answer of authorized shares and issued shares and outstanding is...

Question 14

Match between columns
                        Premises:  A legal entity, separate from the people who create and operate it
 A company whose shares can be bought and sold in public markets
 The rules and procedures for conducting a corporation's affairs
 A company whose shares are not bought or sold in public markets
 Document which formally creates a corporation
 Creditors cannot pursue stockholders' personal assets to satisfy claims
 Group which meets periodically to establish corporate policies
 Corporate income distributed to stockholders

Accepted Answer

The Answer of articles of incorporation and limited liability and is...

Quiz 12: Corporations: Organization, Stock Transactions, and Dividends

On April 1, 10,000 shares of $5 par common stock were issued at $22, and on April 7, 5,000 shares of $50 par preferred stock were issued at $104. What are the entries for April 1 and 7?

Alma Corp. issues 1,000 shares of $10 par common stock at $14 per share. Journalize the transaction.

Nexis Corp. issues 1,000 shares of $15 par value common stock at $22 per share. Journalize the 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. What is the amount of the debit to Cash on May 1 and May 7?

The Sneed Corporation issues 10,000 shares of $50 par preferred stock for cash at $75 per share. Journalize the entry to record the sale.

Match the following stockholders' equity concepts to the appropriate term

Match each of the following stockholders' equity concepts to the most appropriate term.

Match each of the following stockholders' equity concepts to the appropriate term.