Question 1

A corporation issued 5,000 shares of its no par common stock that was assigned a $1 stated value per share.The issue price was $10 per share.The entry to record this transaction would be:

Accepted Answer

A)  Debit Cash $50,000;credit Paid-in Capital in Excess of Par Value,Common Stock $45,000;credit Common Stock $5,000.
B)  Debit Cash $50,000;credit Common Stock $50,000.
C)  Debit Common Stock $50,000;credit Cash $50,000.
D)  Debit Treasury Stock $50,000;credit Cash $50,000.
E)  Debit Common Stock $25,000;debit Paid-in Capital in Excess of Par Value,Common Stock $5,000;credit Common Stock $45,000.F) C) and E)
G) B) and D)

Question 2

A liability for dividends exists:

Accepted Answer

A)  When cumulative preferred stock is sold.
B)  On the date of declaration.
C)  On the date of record.
D)  On the date of payment.
E)  For dividends in arrears on cumulative preferred stock.F) B) and C)
G) A) and B)

Question 3

The date of record is the date that directors vote to pay a cash dividend to shareholders.

Accepted Answer

A) True 
 B)False

Question 4

Book value per share reflects the value per share if a company is liquidated at balance sheet amounts.

Accepted Answer

A) True 
 B)False

Question 5

When no-par stock is not assigned a stated value,the total amount received is recorded in the Common Stock account.

Accepted Answer

A) True 
 B)False

Question 6

Mayan Company had net income of $132,000.The weighted-average common shares outstanding were 80,000.The company declared a $27,000 dividend on its noncumulative,nonparticipating preferred stock.There were no other stock transactions.The company's earnings per share is:

Accepted Answer

A)  $1.65.
B)  $1.99.
C)  $1.31.
D)  $0.34.
E)  $4.89.F) None of the above
G) C) and E)

Question 7

The journal entry to record the declaration of dividends on common stock includes a debit to Retained Earnings and a credit to Common Dividend Payable.

Accepted Answer

A) True 
 B)False

Question 8

The stockholders' equity section of a company's year-end balance sheet follows:  The preferred stock has a call price of $51.50 per share plus dividends in arrears.Only one year of dividends is in arrears.Calculate the book value per (1)preferred share,and (2)common share.

Accepted Answer

<img  loading="lazy" src="/assets/images/blured-textbook.svg" class="d-inline m-1" alt="blured image" width="139" height="30"> (1)Book value per preferred s...

Question 9

West Company declared a $0.50 per share cash dividend.The company has 190,000 shares issued,and 10,000 shares in treasury stock.The journal entry to record the payment of the dividend is:

Accepted Answer

A)  Debit Retained Earnings $90,000;credit Common Dividends Payable $90,000.
B)  Debit Common Dividends Payable $95,000;credit Cash $95,000.
C)  Debit Retained Earnings $5,000;credit Common Dividends Payable $5,000.
D)  Debit Common Dividends Payable $90,000;credit Cash $90,000.
E)  Debit Retained Earnings $95,000;credit Common Dividends Payable $95,000.F) B) and E)
G) A) and B)

Question 10

Dividend yield shows the annual amount of cash dividends distributed to common shares relative to the stock's market price.

Accepted Answer

A) True 
 B)False

Question 11

A stock dividend is recorded with a transfer from:

Accepted Answer

A)  Contributed capital to retained earnings.
B)  Retained earnings to contributed capital.
C)  Retained earnings to assets.
D)  Contributed capital to assets.
E)  Assets to contributed capital.F) D) and E)
G) A) and B)

Question 12

Prior to June 30,a company has never had any treasury stock transactions.A company repurchased 100 shares of its common stock on June 30 for $40 per share.On July 20,it reissued 50 of these shares at $46 per share.On August 1,it reissued 20 of the shares at $38 per share.What is the balance in the Treasury Stock account on August 2?

Accepted Answer

A)  $5,050.
B)  $2,600.
C)  $100.
D)  $1,200.
E)  $0.F) A) and B)
G) D) and E)

Question 13

Purchasing treasury stock reduces the corporation's assets and stockholders' equity by unequal amounts.

Accepted Answer

A) True 
 B)False

Question 14

A stock split is the distribution of additional shares of stock to stockholders according to their percent of ownership.

Accepted Answer

A) True 
 B)False

Question 15

A stock split increases total stockholders' equity.

Accepted Answer

A) True 
 B)False

Question 16

__________________________ is the annual amount of cash dividends per share distributed to common shareholders relative to the stock's market price.

Accepted Answer

The answer of __________________________ is the annual amount of cash...

Question 17

Par value of a stock refers to the:

Accepted Answer

A)  Issue price of the stock.
B)  Value assigned per share by the corporate charter.
C)  Market value of the stock on the date of the financial statements.
D)  Maximum selling price of the stock.
E)  Dividend value of the stock.F) B) and D)
G) A) and D)

Question 18

The cumulative net income and loss not distributed as dividends to a corporation's shareholders is called ______________________.

Accepted Answer

The answer of The cumulative net income and loss not...

Question 19

Preferred stock with a feature allowing preferred stockholders to share with common shareholders in any dividends in excess of the percent or dollar amount stated on the preferred stock is called:

Accepted Answer

A)  Cumulative preferred stock.
B)  Callable preferred stock.
C)  Participating preferred stock.
D)  Convertible preferred stock.
E)  Preferential preferred stock.F) None of the above
G) A) and E)

Question 20

A company made an error in recording the 2014 purchase of computer equipment as an expense.This was discovered in 2015.The item should be reported as a prior period adjustment on the 2015 income statement.

Accepted Answer

A) True 
 B)False

Exam 13: Accounting for Corporations

A stock split is the distribution of additional shares of stock to stockholders according to their percent of ownership.

Correct Answer
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Correct Answer
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Par value of a stock refers to the:

Correct Answer
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The journal entry to record the declaration of dividends on common stock includes a debit to Retained Earnings and a credit to Common Dividend Payable.

Correct Answer
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The date of record is the date that directors vote to pay a cash dividend to shareholders.

Correct Answer
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Purchasing treasury stock reduces the corporation's assets and stockholders' equity by unequal amounts.

Correct Answer
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A liability for dividends exists:

Correct Answer
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When no-par stock is not assigned a stated value,the total amount received is recorded in the Common Stock account.

Correct Answer
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A stock dividend is recorded with a transfer from:

Correct Answer
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Book value per share reflects the value per share if a company is liquidated at balance sheet amounts.

Correct Answer
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The cumulative net income and loss not distributed as dividends to a corporation's shareholders is called ______________________.

Correct Answer
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Dividend yield shows the annual amount of cash dividends distributed to common shares relative to the stock's market price.

Correct Answer
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A corporation issued 5,000 shares of its no par common stock that was assigned a $1 stated value per share.The issue price was $10 per share.The entry to record this transaction would be:

Correct Answer
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Mayan Company had net income of $132,000.The weighted-average common shares outstanding were 80,000.The company declared a $27,000 dividend on its noncumulative,nonparticipating preferred stock.There were no other stock transactions.The company's earnings per share is:

Correct Answer
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__________________________ is the annual amount of cash dividends per share distributed to common shareholders relative to the stock's market price.

Correct Answer
verified

A stock split increases total stockholders' equity.

Correct Answer
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The stockholders' equity section of a company's year-end balance sheet follows: The preferred stock has a call price of $51.50 per share plus dividends in arrears.Only one year of dividends is in arrears.Calculate the book value per (1)preferred share,and (2)common share.

Correct Answer
verified
(1)Book value per preferred s...
View Answer

West Company declared a $0.50 per share cash dividend.The company has 190,000 shares issued,and 10,000 shares in treasury stock.The journal entry to record the payment of the dividend is:

Correct Answer
verified

Preferred stock with a feature allowing preferred stockholders to share with common shareholders in any dividends in excess of the percent or dollar amount stated on the preferred stock is called:

Correct Answer
verified

A company made an error in recording the 2014 purchase of computer equipment as an expense.This was discovered in 2015.The item should be reported as a prior period adjustment on the 2015 income statement.

Correct Answer
verified

Exam 13: Accounting for Corporations

A stock split is the distribution of additional shares of stock to stockholders according to their percent of ownership.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Par value of a stock refers to the:

Correct AnswerverifiedShow Answer

The journal entry to record the declaration of dividends on common stock includes a debit to Retained Earnings and a credit to Common Dividend Payable.

Correct AnswerverifiedShow Answer

The date of record is the date that directors vote to pay a cash dividend to shareholders.

Correct AnswerverifiedShow Answer

Purchasing treasury stock reduces the corporation's assets and stockholders' equity by unequal amounts.

Correct AnswerverifiedShow Answer

A liability for dividends exists:

Correct AnswerverifiedShow Answer

When no-par stock is not assigned a stated value,the total amount received is recorded in the Common Stock account.

Correct AnswerverifiedShow Answer

A stock dividend is recorded with a transfer from:

Correct AnswerverifiedShow Answer

Book value per share reflects the value per share if a company is liquidated at balance sheet amounts.

Correct AnswerverifiedShow Answer

The cumulative net income and loss not distributed as dividends to a corporation's shareholders is called ______________________.

Correct AnswerverifiedShow Answer

Dividend yield shows the annual amount of cash dividends distributed to common shares relative to the stock's market price.

Correct AnswerverifiedShow Answer

A corporation issued 5,000 shares of its no par common stock that was assigned a $1 stated value per share.The issue price was $10 per share.The entry to record this transaction would be:

Correct AnswerverifiedShow Answer

Mayan Company had net income of $132,000.The weighted-average common shares outstanding were 80,000.The company declared a $27,000 dividend on its noncumulative,nonparticipating preferred stock.There were no other stock transactions.The company's earnings per share is:

Correct AnswerverifiedShow Answer

__________________________ is the annual amount of cash dividends per share distributed to common shareholders relative to the stock's market price.

Correct AnswerverifiedShow Answer

A stock split increases total stockholders' equity.

Correct AnswerverifiedShow Answer

The stockholders' equity section of a company's year-end balance sheet follows: The preferred stock has a call price of $51.50 per share plus dividends in arrears.Only one year of dividends is in arrears.Calculate the book value per (1)preferred share,and (2)common share.

Correct Answerverified (1)Book value per preferred s...View AnswerShow Answer

West Company declared a $0.50 per share cash dividend.The company has 190,000 shares issued,and 10,000 shares in treasury stock.The journal entry to record the payment of the dividend is:

Correct AnswerverifiedShow Answer

Preferred stock with a feature allowing preferred stockholders to share with common shareholders in any dividends in excess of the percent or dollar amount stated on the preferred stock is called:

Correct AnswerverifiedShow Answer

A company made an error in recording the 2014 purchase of computer equipment as an expense.This was discovered in 2015.The item should be reported as a prior period adjustment on the 2015 income statement.

Correct AnswerverifiedShow Answer

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(1)Book value per preferred s...
View Answer

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