Question 1

Use the following information for . 
January 1, 2019: Pacific Corporation reacquires 2,000 shares of its $20 par common stock for $88 per share. 
March 5, 2019: Pacific reissues 1,000 of the above mentioned shares for $100 per share.
-The journal entry to record the January 1, 2019 transaction will be:

Accepted Answer

2,000 shares x $88 = $176,000

Question 2

Use the following information for . 
January 1, 2019: Pacific Corporation reacquires 2,000 shares of its $20 par common stock for $88 per share. 
March 5, 2019: Pacific reissues 1,000 of the above mentioned shares for $100 per share.
-The journal entry to record the March 5, 2019 transaction will be:

Accepted Answer

1,000 shares x $100 = $100,000; 1,000 shares x $88 = $88,000
$100,000 - $88,000 = $12,000

Question 3

Terri Company has never had any treasury stock transactions. On June 1 of the current year, they purchased 100 shares of its common stock (which has a par value of $30) for $15,000. On July 1, they reissued 50 of these shares at $156 per share.
What is the balance in the Paid-in- Capital, Treasury Stock account on July 1?

Accepted Answer

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Question 4

Finance Company has never had any treasury stock transactions. On June 1 of the current year, they purchased 100 shares of its common stock (which has a par value of $40) for $20,000. On July 1, they reissued 50 of these shares at $208 per share.
What is the balance in the Paid-in- Capital, Treasury Stock account on July 1?

Accepted Answer

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Question 5

On January 1, 2019, Van Lines Company had 100,000 shares of $12 par-value common stock outstanding. On March 1, 2019, they purchased 2,000 of its outstanding shares for $54 per share. On May 1, 2019, it reissued 1,000 shares at $66 per share.
The journal entry to record the reissuance of the stock on May 1, 2019 would include:

Accepted Answer

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Question 6

On January 1, 2019, Mayflower Company had 100,000 shares of $16 par-value common stock outstanding. On March 1, 2019, they purchased 2,000 of its outstanding shares for $72 per share. On May 1, 2019, it reissued 1,000 shares at $88 per share.
The journal entry to record the reissuance of the stock on May 1, 2019 would include:

Accepted Answer

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Question 7

Island Company purchased 10,000 shares of own its no par value common stock for $21 per share on January 1. On April 1, 2019, they reissued 5,000 of these shares for $27 a share.
The journal entry on April 1, will include a:

Accepted Answer

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Question 8

Rhode Island Company purchased 10,000 shares of own its no par value common stock for $28 per share on January 1. On April 1, 2019, they reissued 5,000 of these shares for $36 a share.
The journal entry on April 1, will include a:

Accepted Answer

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Question 9

On April 1, 2019, Ruby Corporation reacquired 1,000 shares of its own $30 par stock for a total of $195,000 cash. On October 15, 300 of the treasury shares were reissued at a price of $210 per share.
The journal entry to record the reissuance of the 300 shares of stock on October 15 includes a:

Accepted Answer

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Question 10

On April 1, 2019, Crystal Corporation reacquired 1,000 shares of its own $40 par stock for a total of $260,000 cash. On October 15, 300 of the treasury shares were reissued at a price of $280 per share.
The journal entry to record the reissuance of the 300 shares of stock on October 15 includes a:

Accepted Answer

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Question 11

Twin Company has 200,000 shares authorized, 150,000 shares issued, and 25,000 shares of Treasury stock on January 1, 2019. On March 1, they declared a 15% stock dividend. The company then declared a $0.70 per share cash dividend.
What is the amount of dividends payable?

Accepted Answer

125,000 shares outstanding x 1.15% =143,750 shares outstanding as of March 1, 2019
143,750 shares x $0.70 dividend / share = $100,625

Question 12

Navarro Company has 200,000 shares authorized, 150,000 shares issued, and 25,000 shares of Treasury stock on January 1, 2019. On March 1, they declared a 15% stock dividend. The company then declared a $2.10 per share cash dividend.
What is the amount of dividends payable?

Accepted Answer

125,000 shares outstanding x 1.15% =143,750 shares outstanding as of March 1, 2019
143,750 shares x $2.10 dividend / share = $301,875

Question 13

McGrath Company has 1,000 shares of $100 par value, 5% cumulative preferred stock and 50,000 shares of $20 par value common stock outstanding. The company paid total cash dividends of $2,000 in its first year of operation, and declared total cash dividends of $10,000 in its second year of operation.
The cash dividend paid to common stockholders in the second year will be:

Accepted Answer

The answer of McGrath Company has 1,000 shares of $100...

Question 14

Lauer Company has 1,000 shares of $300 par value, 5% cumulative preferred stock and 50,000 shares of $60 par value common stock outstanding. The company paid total cash dividends of $6,000 in its first year of operation, and declared total cash dividends of $30,000 in its second year of operation.
The cash dividend paid to common stockholders in the second year will be:

Accepted Answer

($300 × 1,000 × 5%) = $15,000 Dividends payable to Preferred each year
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Question 15

Amin Company has 200,000 shares of $20 par value common stock outstanding. On April 15, 2019 the company declared a 40% stock dividend. The current market value of the stock was $30 per common share.
The journal entry on April 15 will include:

Accepted Answer

200,000 shares x 40% x $20 par value
The journal entry on April 15 will be:
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Question 16

Sayali Company has 200,000 shares of $60 par value common stock outstanding. On April 15, 2019 the company declared a 40% stock dividend. The current market value of the stock was $90 per common share.
The journal entry on April 15 will include:

Accepted Answer

200,000 shares x 40% x $60 par value
 
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Question 17

John, Inc. has 5,000 shares of 6%, $200 par value, cumulative preferred stock and 100,000 shares of $2 par value common stock outstanding. There were no dividends declared in 2018. The board of directors declared and paid dividends of $100,000 each in 2019 and 2020.
What is the amount of dividends received by the common stockholders in 2020?

Accepted Answer

Preferred stock dividend payable = 5,000 shares x $200 x 6% = $60,000 / year
Distribution of dividends:
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Question 18

Karin, Inc. has 5,000 shares of 6%, $600 par value, cumulative preferred stock and 100,000 shares of $6 par value common stock outstanding. There were no dividends declared in 2018. The board of directors declared and paid dividends of $300,000 each in 2019 and 2020.
What is the amount of dividends received by the common stockholders in 2020?

Accepted Answer

Preferred stock dividend payable = 5,000 shares x $600 x 6% = $180,000 / year
Distribution of dividends:
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Question 19

Superior Company had 50,000 shares of $50 par value common stock outstanding on June 30, 2019. On July 1, the board of directors declared a 10% stock dividend when the market value of each share was $54
The journal entry on July 1 will include:

Accepted Answer

50,000 shares x 10% = 5,000 share stock dividend x $54 = $270,000
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Question 20

Balenberg Company had 50,000 shares of $150 par value common stock outstanding on June 30, 2019. On July 1, the board of directors declared a 10% stock dividend when the market value of each share was $162.
The journal entry on July 1 will include:

Accepted Answer

50,000 shares x 10% = 5,000 share stock dividend x $162 = $810,000
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Quiz 11: Stockholders Equity

Use the following information for . January 1, 2019: Pacific Corporation reacquires 2,000 shares of its $20 par common stock for $88 per share. March 5, 2019: Pacific reissues 1,000 of the above mentioned shares for $100 per share. -The journal entry to record the March 5, 2019 transaction will be:

Island Company purchased 10,000 shares of own its no par value common stock for $21 per share on January 1. On April 1, 2019, they reissued 5,000 of these shares for $27 a share. The journal entry on April 1, will include a:

Rhode Island Company purchased 10,000 shares of own its no par value common stock for $28 per share on January 1. On April 1, 2019, they reissued 5,000 of these shares for $36 a share. The journal entry on April 1, will include a:

On April 1, 2019, Ruby Corporation reacquired 1,000 shares of its own $30 par stock for a total of $195,000 cash. On October 15, 300 of the treasury shares were reissued at a price of $210 per share. The journal entry to record the reissuance of the 300 shares of stock on October 15 includes a:

On April 1, 2019, Crystal Corporation reacquired 1,000 shares of its own $40 par stock for a total of $260,000 cash. On October 15, 300 of the treasury shares were reissued at a price of $280 per share. The journal entry to record the reissuance of the 300 shares of stock on October 15 includes a:

Twin Company has 200,000 shares authorized, 150,000 shares issued, and 25,000 shares of Treasury stock on January 1, 2019. On March 1, they declared a 15% stock dividend. The company then declared a $0.70 per share cash dividend. What is the amount of dividends payable?

Navarro Company has 200,000 shares authorized, 150,000 shares issued, and 25,000 shares of Treasury stock on January 1, 2019. On March 1, they declared a 15% stock dividend. The company then declared a $2.10 per share cash dividend. What is the amount of dividends payable?

Amin Company has 200,000 shares of $20 par value common stock outstanding. On April 15, 2019 the company declared a 40% stock dividend. The current market value of the stock was $30 per common share. The journal entry on April 15 will include:

Sayali Company has 200,000 shares of $60 par value common stock outstanding. On April 15, 2019 the company declared a 40% stock dividend. The current market value of the stock was $90 per common share. The journal entry on April 15 will include:

Superior Company had 50,000 shares of $50 par value common stock outstanding on June 30, 2019. On July 1, the board of directors declared a 10% stock dividend when the market value of each share was $54 The journal entry on July 1 will include:

Balenberg Company had 50,000 shares of $150 par value common stock outstanding on June 30, 2019. On July 1, the board of directors declared a 10% stock dividend when the market value of each share was $162. The journal entry on July 1 will include: