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) .
​
-$235,000

Accepted Answer

A)  Treasury stock
B)  Retained earnings
C)  Preferred stock
D)  Excess of issue price over par (preferred) 
E)  Common stockF) Total paid-in capitalG) Excess of issue price over par (common) H) Total stockholders' equityI) E) and G)
J) D) and F)

Question 2

What is the total stockholders' equity based on the following account balances?​​

Accepted Answer

A)  $670,000
B)  $655,000
C)  $640,000
D)  $565,000E) None of the above
F) C) and D)

Question 3

Retained Earnings represents past net income less past dividends; therefore,any balance in this account would be listed on the income statement.

Accepted Answer

A) True 
 B)False

Question 4

A deficit in Retained Earnings is reported in the Stockholders' equity section of the balance sheet.

Accepted Answer

A) True 
 B)False

Question 5

On June 5,Belen Corporation reacquired 3,300 shares of its own common stock at $45 per share.On July 15,Belen sold 2,000 of the reacquired shares at $48 per share.On August 30,Belen sold the remaining shares at $42 per share.​Journalize the transactions of June 5,July 15,and August 30.

Accepted Answer

The answer of On June 5,Belen Corporation reacquired 3,300 shares...

Question 6

Nexis Corp.issues 1,000 shares of $15 par value common stock at $22 per share.When the transaction is recorded,credits are made to

Accepted Answer

A)  Common Stock, $15,000, and Paid-In Capital in Excess of Par-Common Stock, $7,000
B)  Common Stock, $22,000, and Retained Earnings, $15,000
C)  Common Stock, $7,000, and Paid-In Capital in Excess of Stated Value, $15,000
D)  Common Stock, $22,000E) All of the above
F) C) and D)

Question 7

A corporation is a separate entity for accounting purposes but not for legal purposes.

Accepted Answer

A) True 
 B)False

Question 8

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) All of the above
F) C) and D)

Question 9

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 10

When Wisconsin Corporation was formed on January 1,the corporate charter provided for 100,000 shares of $10 par value common stock.During its first month of operation,the corporation issued 8,500 shares of stock at a price of $16 per share.​The entry to record the above transaction would include a

Accepted Answer

A)  debit to Cash for $85,000
B)  credit to Common Stock for $136,000
C)  credit to Paid-In Capital in Excess of Par-Common Stock for $51,000
D)  debit to Common Stock for $85,000E) A) and D)
F) All of the above

Question 11

The retained earnings statement may be combined with the income statement.

Accepted Answer

A) True 
 B)False

Question 12

Organizational expenses are classified as intangible assets on the balance sheet.

Accepted Answer

A) True 
 B)False

Question 13

The financial loss that each stockholder in a corporation can incur is usually limited to the amount invested by the stockholder.

Accepted Answer

A) True 
 B)False

Question 14

The par value per share of common stock represents the

Accepted Answer

A)  minimum selling price of the stock established by the articles of incorporation
B)  minimum amount the stockholder will receive when the corporation is liquidated
C)  dollar amount assigned to each share
D)  amount of dividends per share to be received each yearE) B) and C)
F) A) and C)

Question 15

A restriction/appropriation of retained earnings

Accepted Answer

A)  decreases total assets
B)  increases total retained earnings
C)  decreases total retained earnings
D)  has no effect on total retained earningsE) None of the above
F) A) and B)

Question 16

Match each of the following stockholders' equity concepts to the appropriate term (a-h) .
-Equity account reflecting shares "owed" to stockholders

Accepted Answer

A)  Cash dividend
B)  Date of record
C)  Stock Dividends Distributable
D)  Date of declaration
E)  Treasury stockF) Preferred stockG) Date of paymentH) Paid-In Capital in Excess of ParI) A) and C)
J) D) and H)

Question 17

The two main sources of stockholders' equity are

Accepted Answer

A)  investments by stockholders and net income retained in the business
B)  investments by stockholders and dividends paid
C)  net income retained in the business and dividends paid
D)  investments by stockholders and purchases of assetsE) B) and D)
F) A) and D)

Question 18

The dates of importance in connection with a cash dividend of $50,000 on a corporation's common stock are January 15,February 15,and March 15.Journalize the entries required on each date.

Accepted Answer

The answer of The dates of importance in connection with...

Question 19

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) A) and B)
J) D) and G)

Question 20

The excess of sales price of treasury stock over its cost should be credited to

Accepted Answer

A)  Treasury Stock Receivable
B)  Premium on Capital Stock
C)  Paid-In Capital from Sale of Treasury Stock
D)  Income from Sale of Treasury StockE) All of the above
F) B) and D)

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

The financial loss that each stockholder in a corporation can incur is usually limited to the amount invested by the stockholder.

Correct Answer
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Correct Answer
verified

When Wisconsin Corporation was formed on January 1,the corporate charter provided for 100,000 shares of $10 par value common stock.During its first month of operation,the corporation issued 8,500 shares of stock at a price of $16 per share.The entry to record the above transaction would include a

Correct Answer
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Retained Earnings represents past net income less past dividends; therefore,any balance in this account would be listed on the income statement.

Correct Answer
verified

On June 5,Belen Corporation reacquired 3,300 shares of its own common stock at $45 per share.On July 15,Belen sold 2,000 of the reacquired shares at $48 per share.On August 30,Belen sold the remaining shares at $42 per share.Journalize the transactions of June 5,July 15,and August 30.

Correct Answer
verified

The excess of sales price of treasury stock over its cost should be credited to

Correct Answer
verified

Match each of the following stockholders' equity concepts to the appropriate term (a-h) . -Equity account reflecting shares "owed" to stockholders

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

Organizational expenses are classified as intangible assets on the balance sheet.

Correct Answer
verified

A deficit in Retained Earnings is reported in the Stockholders' equity section of the balance sheet.

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

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.

Correct Answer
verified

The par value per share of common stock represents the

Correct Answer
verified

The retained earnings statement may be combined with the income statement.

Correct Answer
verified

What is the total stockholders' equity based on the following account balances?

Correct Answer
verified

A corporation is a separate entity for accounting purposes but not for legal purposes.

Correct Answer
verified

The two main sources of stockholders' equity are

Correct Answer
verified

Nexis Corp.issues 1,000 shares of $15 par value common stock at $22 per share.When the transaction is recorded,credits are made to

Correct Answer
verified

A restriction/appropriation of retained earnings

Correct Answer
verified

The dates of importance in connection with a cash dividend of $50,000 on a corporation's common stock are January 15,February 15,and March 15.Journalize the entries required on each date.

Correct Answer
verified

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

The financial loss that each stockholder in a corporation can incur is usually limited to the amount invested by the stockholder.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Retained Earnings represents past net income less past dividends; therefore,any balance in this account would be listed on the income statement.

Correct AnswerverifiedShow Answer

On June 5,Belen Corporation reacquired 3,300 shares of its own common stock at $45 per share.On July 15,Belen sold 2,000 of the reacquired shares at $48 per share.On August 30,Belen sold the remaining shares at $42 per share.​Journalize the transactions of June 5,July 15,and August 30.

Correct AnswerverifiedShow Answer

The excess of sales price of treasury stock over its cost should be credited to

Correct AnswerverifiedShow Answer

Match each of the following stockholders' equity concepts to the appropriate term (a-h) . -Equity account reflecting shares "owed" to stockholders

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

Organizational expenses are classified as intangible assets on the balance sheet.

Correct AnswerverifiedShow Answer

A deficit in Retained Earnings is reported in the Stockholders' equity section of the balance sheet.

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

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.

Correct AnswerverifiedShow Answer

The par value per share of common stock represents the

Correct AnswerverifiedShow Answer

The retained earnings statement may be combined with the income statement.

Correct AnswerverifiedShow Answer

What is the total stockholders' equity based on the following account balances?​​

Correct AnswerverifiedShow Answer

A corporation is a separate entity for accounting purposes but not for legal purposes.

Correct AnswerverifiedShow Answer

The two main sources of stockholders' equity are

Correct AnswerverifiedShow Answer

Nexis Corp.issues 1,000 shares of $15 par value common stock at $22 per share.When the transaction is recorded,credits are made to

Correct AnswerverifiedShow Answer

A restriction/appropriation of retained earnings

Correct AnswerverifiedShow Answer

The dates of importance in connection with a cash dividend of $50,000 on a corporation's common stock are January 15,February 15,and March 15.Journalize the entries required on each date.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

On June 5,Belen Corporation reacquired 3,300 shares of its own common stock at $45 per share.On July 15,Belen sold 2,000 of the reacquired shares at $48 per share.On August 30,Belen sold the remaining shares at $42 per share.Journalize the transactions of June 5,July 15,and August 30.

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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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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Correct Answer
verified

What is the total stockholders' equity based on the following account balances?

Correct Answer
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Correct Answer
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Correct Answer
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