Question 1

If a corporation's stock is traded on the major stock exchanges the corporation must generally report periodically to a federal agency known as the ____________________.

Accepted Answer

The answer of If a corporation's stock is traded on...

Question 2

The stockholders' equity section of a corporation's balance sheet is generally divided in two major sections: (1) _____________ and (2) _______________.

Accepted Answer

The answer of The stockholders' equity section of a corporation's...

Question 3

Preferred stock has contractual provisions that give it a preference over common stock as to ___________________ and to ___________________ in the event of liquidation.

Accepted Answer

The answer of Preferred stock has contractual provisions that give...

Question 4

Stockholders elect the _______________ who in turn hire the ______________ of the company who have day to day responsibility for running the corporation.

Accepted Answer

The answer of Stockholders elect the _______________ who in turn...

Question 5

The following information is available for Mint Corporation: $\begin{array}{lr}
\text { Common Stock (\$10 par) } & \$ 1,500,000 \
\text { Paid-in Capital in Excess of Par-Preferred } & 200,000 \
\text { Paid-in Capital in Excess of Stated Value-Common } & 750,000 \
\text { Preferred Stock } & 450,000 \
\text { Retained Earnings } & 800,000 \
\text { Treasury Stock\_Common } & 50,000
\end{array}$ Instructions
Based on the preceding information calculate each of the following:
(a) Total paid-in capital.
(b) Total stockholders' equity.

Accepted Answer

The answer of The following information is available for Mint...

Question 6

Match the items below by entering the appropriate code letter in the space provided.

Accepted Answer

The answer of Match the items below by entering the...

Question 7

The paid-in capital section of the balance sheet consists of two classifications: ______________________ and ______________________.

Accepted Answer

The answer of The paid-in capital section of the balance...

Question 8

A corporation has a separate __________________________ apart from its owners.

Accepted Answer

The answer of A corporation has a separate __________________________ apart...

Question 9

The _______________ feature of preferred stock gives the preferred stockholders the right to receive current-year dividends and unpaid prior-year dividends before common stockholders receive any dividends.

Accepted Answer

The answer of The _______________ feature of preferred stock gives...

Question 10

Niley-Cook Corporation issued 200000 shares of $20 par value 6% preferred stock on January 1 2015 for $4500000. In December 2017 Niley-Cook declared its first dividend of $800000.
Instructions
(a) Prepare Niley-Cook's journal entry to record the issuance of the preferred stock.
(b) If the preferred stock is not cumulative how much of the $800000 would be paid to common stockholders?
(c) If the preferred stock is cumulative how much of the $800000 would be paid to common stockholders?

Accepted Answer

The answer of Niley-Cook Corporation issued 200000 shares of $20...

Question 11

Par value of stock represents the __________________ per share that must be retained in the business for the protection of corporate ___________________.

Accepted Answer

The answer of Par value of stock represents the __________________...

Question 12

The following stockholders' equity accounts arranged alphabetically are in the ledger of Kalmia Corporation at December 31 2017. $\begin{array}{llr}
  \text {  Common Stock (\$5 stated value)} &\$2,200,000\
 \text {  Paid-in Capital in Excess of Par-Preferred Stock} &280,000\
 \text { Paid-in Capital in Excess of Stated Value-Common Stock } &800,000\
 \text {  Preferred Stock ( $ 8 \%, \$ 100 $ par, noncumulative)} &500,000\
 \text { Retained Earnings } &1,334,000\
 \text {  Treasury Stock Common (10.000 shares)} &120,000\
\end{array}$
 Instructions
Prepare the stockholders' equity section of the balance sheet at December 31 2017.

Accepted Answer

The answer of The following stockholders' equity accounts arranged alphabetically...

Question 13

If stock is issued in exchange for noncash assets the assets should be valued at the ____________________ of the consideration ___________________ or the assets ____________________ whichever is more clearly evident.

Accepted Answer

The answer of If stock is issued in exchange for...

Question 14

Stockholders generally have the right to share in corporate _______________ and in ______________ upon liquidation.

Accepted Answer

The answer of Stockholders generally have the right to share...

Question 15

Place each of the items listed below in the appropriate subdivision of the stockholders' equity section of a balance sheet.

Accepted Answer

The answer of Place each of the items listed below...

Question 16

An inexperienced accountant for Chetola Corporation made the following entries.  Instructions
(a) On the basis of the explanation for each entry prepare the entry that should have been made for the transactions. (Omit explanations.)
(b) Prepare the correcting entries that should be made to correct the accounts of Chetola Corporation. (Do not reverse the original entry.)

Accepted Answer

The answer of An inexperienced accountant for Chetola Corporation made...

Question 17

A corporation's own stock that has been reacquired by the corporation but not canceled is called ___________________ and is deducted from total _______________________ on the balance sheet.

Accepted Answer

The answer of A corporation's own stock that has been...

Question 18

Identify at least six characteristics of the corporate form of business organization. Contrast each one with the partnership form of organization.

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The answer of Identify at least six characteristics of the...

Question 19

The major advantages of the corporate form of organization include (1) limited _________________ of owners (2) continuous ____________________ and (3) ease of transferring ___________________.

Accepted Answer

The answer of The major advantages of the corporate form...

Question 20

West Jefferson Corporation has the following stockholders' equity accounts: Preferred Stock
Paid-in Capital in Excess of Par-Preferred Stock
Common Stock
Paid-in Capital in Excess of Stated Value-Common Stock
Paid-in Capital from Treasury Stock-Common
Retained Earnings
Treasury Stock-Common Instructions
Classify each account using the following tabular alignment.

Accepted Answer

The answer of West Jefferson Corporation has the following stockholders'...

Quiz 13: Corporations: Organization and Capital Stock Transactions

If a corporation's stock is traded on the major stock exchanges the corporation must generally report periodically to a federal agency known as the ____________________.

The stockholders' equity section of a corporation's balance sheet is generally divided in two major sections: (1) _ and (2) ___.

Preferred stock has contractual provisions that give it a preference over common stock as to _ and to _ in the event of liquidation.

Stockholders elect the _ who in turn hire the of the company who have day to day responsibility for running the corporation.

Match the items below by entering the appropriate code letter in the space provided.

The paid-in capital section of the balance sheet consists of two classifications: and .

A corporation has a separate __________________________ apart from its owners.

The _______________ feature of preferred stock gives the preferred stockholders the right to receive current-year dividends and unpaid prior-year dividends before common stockholders receive any dividends.

Par value of stock represents the per share that must be retained in the business for the protection of corporate _.

If stock is issued in exchange for noncash assets the assets should be valued at the __________ of the consideration _ or the assets ____________ whichever is more clearly evident.

Stockholders generally have the right to share in corporate _ and in upon liquidation.

Place each of the items listed below in the appropriate subdivision of the stockholders' equity section of a balance sheet.

A corporation's own stock that has been reacquired by the corporation but not canceled is called _ and is deducted from total _____ on the balance sheet.

Identify at least six characteristics of the corporate form of business organization. Contrast each one with the partnership form of organization.

The major advantages of the corporate form of organization include (1) limited _ of owners (2) continuous and (3) ease of transferring ___.