Question 1

Treasury stock that had been purchased for $5,600 last month was reissued this month for $8,500.The journal entry to record the reissuance would include a credit to

Accepted Answer

A)   Treasury Stock for $8,500
B)   Paid-In Capital from Sale of Treasury Stock for $8,500
C)   Paid-In Capital in Excess of Par-Common Stock for $2,900
D)   Paid-In Capital from Sale of Treasury Stock for $2,900E) A) and B)
F) A) and C)

Question 2

Sabas Company has 20,000 shares of $100 par,2% cumulative preferred stock and 100,000 shares of $50 par common stock.The following amounts were distributed as dividends: ​
 Determine the dividends per share for preferred and common stock for the third year.

Accepted Answer

A)   $4.50 and $0.25
B)   $3.25 and $0.25
C)   $4.50 and $0.90
D)   $2.00 and $0.25E) B) and C)
F) A) and B)

Question 3

Match each of the following stockholders' equity concepts to the most appropriate term (a-h) .
-A class of stock that provides no preference rights to shareholders

Accepted Answer

A)  authorized shares
B)  issued shares
C)  outstanding shares
D)  par value
E)  common stockF) preferred stockG) Paid-In Capital in Excess of ParH) transfer agentI) F) and G)
J) B) and E)

Question 4

Cash dividends are normally paid on shares of treasury stock.

Accepted Answer

A) True 
 B)False

Question 5

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 6

Treasury stock that was purchased for $3,000 is sold for $3,500.As a result of these two transactions combined

Accepted Answer

A)   income will be increased by $500
B)   stockholders' equity will be increased by $3,500
C)   stockholders' equity will be increased by $500
D)   stockholders' equity will not changeE) None of the above
F) A) and B)

Question 7

Texas Inc.has 10,000 shares of 6%,$125 par value cumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31.What is the annual dividend on the preferred stock?

Accepted Answer

A)   ​$60 per share
B)   ​$75,000 in total
C)   $10,000 in total
D)   $0.75 per shareE) All of the above
F) A) and C)

Question 8

Stockholders' equity

Accepted Answer

A)   is usually equal to cash on hand
B)   includes paid-in capital and liabilities
C)   includes retained earnings and paid-in capital
D)   is shown on the income statementE) A) and D)
F) None of the above

Question 9

A corporation has 50,000 shares of $25 par stock outstanding that has a current market value of $120.If the corporation issues a 5-for-1 stock split,the par value of the stock after the split will be

Accepted Answer

A)   $5
B)   $60
C)   $25
D)   $24E) A) and C)
F) C) and D)

Question 10

Sabas Company has 40,000 shares of $100 par,1% preferred stock and 100,000 shares of $50 par common stock issued and outstanding.The following amounts were distributed as dividends:
​
  Determine the dividends per share for preferred and common stock for each year.

Accepted Answer

The answer of Sabas Company has 40,000 shares of $100...

Question 11

The declaration of a cash dividend decreases a corporation's stockholders' equity and decreases its assets.

Accepted Answer

A) True 
 B)False

Question 12

Indicate whether the following actions would (+)increase,(-)decrease,or (0)not affect a company's total assets,liabilities,and stockholders' equity.

Accepted Answer

The answer of Indicate whether the following actions would (+)increase,(-)decrease,or...

Question 13

A corporation has 12,000 shares of $20 par stock outstanding that has a current market value of $150.If the corporation issues a 4-for-1 stock split,the market value of the stock will fall to approximately $50.

Accepted Answer

A) True 
 B)False

Exam 12: Corporations: Organization, stock Transactions, and Dividends

Treasury stock that was purchased for $3,000 is sold for $3,500.As a result of these two transactions combined

Correct Answer
verified

Cash dividends are normally paid on shares of treasury stock.

Correct Answer
verified

The declaration of a cash dividend decreases a corporation's stockholders' equity and decreases its assets.

Correct Answer
verified

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.

Correct Answer
verified

Indicate whether the following actions would (+)increase,(-)decrease,or (0)not affect a company's total assets,liabilities,and stockholders' equity.

Correct Answer
verified

Sabas Company has 40,000 shares of $100 par,1% preferred stock and 100,000 shares of $50 par common stock issued and outstanding.The following amounts were distributed as dividends: Determine the dividends per share for preferred and common stock for each year.

Correct Answer
verified

Texas Inc.has 10,000 shares of 6%,$125 par value cumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31.What is the annual dividend on the preferred stock?

Correct Answer
verified

Treasury stock that had been purchased for $5,600 last month was reissued this month for $8,500.The journal entry to record the reissuance would include a credit to

Correct Answer
verified

Stockholders' equity

Correct Answer
verified

A corporation has 12,000 shares of $20 par stock outstanding that has a current market value of $150.If the corporation issues a 4-for-1 stock split,the market value of the stock will fall to approximately $50.

Correct Answer
verified

Sabas Company has 20,000 shares of $100 par,2% cumulative preferred stock and 100,000 shares of $50 par common stock.The following amounts were distributed as dividends: Determine the dividends per share for preferred and common stock for the third year.

Correct Answer
verified

Match each of the following stockholders' equity concepts to the most appropriate term (a-h) . -A class of stock that provides no preference rights to shareholders

Correct Answer
verified

A corporation has 50,000 shares of $25 par stock outstanding that has a current market value of $120.If the corporation issues a 5-for-1 stock split,the par value of the stock after the split will be

Correct Answer
verified

Exam 12: Corporations: Organization, stock Transactions, and Dividends

Treasury stock that was purchased for $3,000 is sold for $3,500.As a result of these two transactions combined

Correct AnswerverifiedShow Answer

Cash dividends are normally paid on shares of treasury stock.

Correct AnswerverifiedShow Answer

The declaration of a cash dividend decreases a corporation's stockholders' equity and decreases its assets.

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

Indicate whether the following actions would (+)increase,(-)decrease,or (0)not affect a company's total assets,liabilities,and stockholders' equity.

Correct AnswerverifiedShow Answer

Sabas Company has 40,000 shares of $100 par,1% preferred stock and 100,000 shares of $50 par common stock issued and outstanding.The following amounts were distributed as dividends: ​ Determine the dividends per share for preferred and common stock for each year.

Correct AnswerverifiedShow Answer

Texas Inc.has 10,000 shares of 6%,$125 par value cumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31.What is the annual dividend on the preferred stock?

Correct AnswerverifiedShow Answer

Treasury stock that had been purchased for $5,600 last month was reissued this month for $8,500.The journal entry to record the reissuance would include a credit to

Correct AnswerverifiedShow Answer

Stockholders' equity

Correct AnswerverifiedShow Answer

A corporation has 12,000 shares of $20 par stock outstanding that has a current market value of $150.If the corporation issues a 4-for-1 stock split,the market value of the stock will fall to approximately $50.

Correct AnswerverifiedShow Answer

Sabas Company has 20,000 shares of $100 par,2% cumulative preferred stock and 100,000 shares of $50 par common stock.The following amounts were distributed as dividends: ​ Determine the dividends per share for preferred and common stock for the third year.

Correct AnswerverifiedShow Answer

Match each of the following stockholders' equity concepts to the most appropriate term (a-h) . -A class of stock that provides no preference rights to shareholders

Correct AnswerverifiedShow Answer

A corporation has 50,000 shares of $25 par stock outstanding that has a current market value of $120.If the corporation issues a 5-for-1 stock split,the par value of the stock after the split will be

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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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.

Correct Answer
verified

Correct Answer
verified

Sabas Company has 40,000 shares of $100 par,1% preferred stock and 100,000 shares of $50 par common stock issued and outstanding.The following amounts were distributed as dividends: Determine the dividends per share for preferred and common stock for each year.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
verified

Sabas Company has 20,000 shares of $100 par,2% cumulative preferred stock and 100,000 shares of $50 par common stock.The following amounts were distributed as dividends: Determine the dividends per share for preferred and common stock for the third year.

Correct Answer
verified

Correct Answer
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Correct Answer
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