Question 1

For the current year ended, ABC had the following transactions:
​
Issued 10,000 shares of $2 par common stock for $12 per share.Issued 3,000 shares of $50 par, 6% preferred stock for $70 per share.Purchased 1,000 shares of previously issued common stock for $15 per share.Reported net income of $200,000.
Declared and paid a total dividend of $40,000.
​
Assume that retained earnings had a beginning balance of $75,000. Match the following amounts to the appropriate term (a-h).
​
-$60,000

Accepted Answer

The answer of For the current year ended, ABC had...

Question 2

For the current year ended, ABC had the following transactions:
​
Issued 10,000 shares of $2 par common stock for $12 per share.Issued 3,000 shares of $50 par, 6% preferred stock for $70 per share.Purchased 1,000 shares of previously issued common stock for $15 per share.Reported net income of $200,000.
Declared and paid a total dividend of $40,000.
​
Assume that retained earnings had a beginning balance of $75,000. Match the following amounts to the appropriate term (a-h).
​
-$100,000

Accepted Answer

The excess of issue price over par for common stock is calculated as (Issue price - Par value) x Number of shares = ($12 - $2) x 10,000 = $100,000.

Question 3

Match each of the following stockholders' equity concepts to the appropriate term (a-h).
-The date that is used to determine the owners of stock who will receive the current dividend

Accepted Answer

The date of record is the date that is used to determine the owners of stock who will receive the current dividend.

Answer: D
 The date of declaration is the date on which the board of directors officially approves the payment of a dividend.

Answer: C 
 Stock dividends distributable represents the value of stock dividends that have been declared but have not yet been distributed to shareholders.

Answer: G 
 The date of payment is the date on which the dividend is actually paid to the shareholders.

Answer: E 
 Treasury stock represents shares of a company's own stock that it has purchased and is holding in its treasury.

Answer: F 
 Preferred stock is a type of stock that pays a fixed dividend and has priority over common stock in the distribution of assets in the event of liquidation.

Answer: A 
 Cash dividend is the payment of a dividend in cash to shareholders.

Answer: H 
 Paid-in capital in excess of par represents the amount that investors have paid for a company's stock in excess of its stated par value.

Question 4

Match each of the following stockholders' equity concepts to the appropriate term (a-h).
-The date when dividends are actually distributed to stockholders

Accepted Answer

The date of payment is when dividends are actually distributed to stockholders. This is the specific date on which the company pays out the declared dividends to the shareholders who are on record as of the date of record.

Question 5

Wonder Sales is authorized to issue 100,000 shares of 2%,$100 par preferred stock and 1,000,000 shares of $10 par common stock.Journalize the following transactions:​
(a)On January 2,Wonder Sales issues 5,000 shares of preferred stock for $110 per share and 65,000 shares of common stock at $10 per share.​
(b)On January 25,Wonder Sales issues 250 shares of preferred stock to Morton Law Firm for settlement of a $36,000 invoice for incorporation services.​
(c)On January 31,Wonder Sales issues 500 shares of common stock to Setup Inc.for fixtures that have a fair market value of $8,500.

Accepted Answer

The answer of Wonder Sales is authorized to issue 100,000...

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.

Accepted Answer

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

Question 7

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,Motor,Inc.issued...

Question 8

For the current year ended, ABC had the following transactions:
​
Issued 10,000 shares of $2 par common stock for $12 per share.Issued 3,000 shares of $50 par, 6% preferred stock for $70 per share.Purchased 1,000 shares of previously issued common stock for $15 per share.Reported net income of $200,000.
Declared and paid a total dividend of $40,000.
​
Assume that retained earnings had a beginning balance of $75,000. Match the following amounts to the appropriate term (a-h).
​
-$550,000

Accepted Answer

The answer of For the current year ended, ABC had...

Question 9

For the current year ended, ABC had the following transactions:
​
Issued 10,000 shares of $2 par common stock for $12 per share.Issued 3,000 shares of $50 par, 6% preferred stock for $70 per share.Purchased 1,000 shares of previously issued common stock for $15 per share.Reported net income of $200,000.
Declared and paid a total dividend of $40,000.
​
Assume that retained earnings had a beginning balance of $75,000. Match the following amounts to the appropriate term (a-h).
​
-$235,000

Accepted Answer

The ending retained earnings is calculated as the beginning balance ($75,000) plus net income ($200,000) minus dividends paid ($40,000), resulting in $235,000.

Question 10

For the current year ended, ABC had the following transactions:
​
Issued 10,000 shares of $2 par common stock for $12 per share.Issued 3,000 shares of $50 par, 6% preferred stock for $70 per share.Purchased 1,000 shares of previously issued common stock for $15 per share.Reported net income of $200,000.
Declared and paid a total dividend of $40,000.
​
Assume that retained earnings had a beginning balance of $75,000. Match the following amounts to the appropriate term (a-h).
​
-$20,000

Accepted Answer

The answer of For the current year ended, ABC had...

Question 11

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.Journalize the entries for April 1 and 7.

Accepted Answer

The answer of On April 1,10,000 shares of $5 par...

Question 12

Match each of the following stockholders' equity concepts to the appropriate term (a-h).
-Account used when shares are issued for an amount greater than par value

Accepted Answer

Paid-In Capital in Excess of Par is the account used when shares are issued for an amount greater than par value.

Question 13

For the current year ended, ABC had the following transactions:
​
Issued 10,000 shares of $2 par common stock for $12 per share.Issued 3,000 shares of $50 par, 6% preferred stock for $70 per share.Purchased 1,000 shares of previously issued common stock for $15 per share.Reported net income of $200,000.
Declared and paid a total dividend of $40,000.
​
Assume that retained earnings had a beginning balance of $75,000. Match the following amounts to the appropriate term (a-h).
​
-$330,000

Accepted Answer

The total paid-in capital is calculated by adding the common stock, preferred stock, and the excess of issue price over par for both common and preferred stock.

Question 14

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 par...

Question 15

Match each of the following stockholders' equity concepts to the appropriate term (a-h).
-The day of the event that creates a liability to company

Accepted Answer

The date of declaration is the specific day on which the board of directors formally authorizes the payment of a dividend, effectively creating a liability for the company.

Question 16

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:​  Journalize the transactions.

Accepted Answer

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

Question 17

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 cash...

Question 18

For the current year ended, ABC had the following transactions:
​
Issued 10,000 shares of $2 par common stock for $12 per share.Issued 3,000 shares of $50 par, 6% preferred stock for $70 per share.Purchased 1,000 shares of previously issued common stock for $15 per share.Reported net income of $200,000.
Declared and paid a total dividend of $40,000.
​
Assume that retained earnings had a beginning balance of $75,000. Match the following amounts to the appropriate term (a-h).
​
-$150,000

Accepted Answer

The answer of For the current year ended, ABC had...

Question 19

On February 13,Epperson Company issued 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.

Accepted Answer

The answer of On February 13,Epperson Company issued for cash...

Question 20

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.

Accepted Answer

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

Quiz 13: Corporations: Organization, stock Transactions, and Dividends

Match each of the following stockholders' equity concepts to the appropriate term (a-h) . -The date that is used to determine the owners of stock who will receive the current dividend

Match each of the following stockholders' equity concepts to the appropriate term (a-h) . -The date when dividends are actually distributed to stockholders

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.

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.

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.Journalize the entries for April 1 and 7.

Match each of the following stockholders' equity concepts to the appropriate term (a-h) . -Account used when shares are issued for an amount greater than par value

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.

Match each of the following stockholders' equity concepts to the appropriate term (a-h) . -The day of the event that creates a liability to company

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: Journalize the transactions.

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.

Quiz 13: Corporations: Organization, stock Transactions, and Dividends

Match each of the following stockholders' equity concepts to the appropriate term (a-h) . -The date that is used to determine the owners of stock who will receive the current dividend

Match each of the following stockholders' equity concepts to the appropriate term (a-h) . -The date when dividends are actually distributed to stockholders

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.

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.Journalize the entries for April 1 and 7.

Match each of the following stockholders' equity concepts to the appropriate term (a-h) . -Account used when shares are issued for an amount greater than par value

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.

Match each of the following stockholders' equity concepts to the appropriate term (a-h) . -The day of the event that creates a liability to company

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:​ Journalize the transactions.

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.

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: Journalize the transactions.