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

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Question 71

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Match each of the following stockholders' equity concepts to the most appropriate term (a-h). -The maximum number of shares a company can issue to shareholders A)authorized shares B)issued shares C)outstanding shares D)par value E)common stock F)preferred stock G)Paid-In Capital in Excess of Par H)transfer agent

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Question 72

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

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 change

E) A) and B)
F) All of the above

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Question 73

Multiple Choice

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Treasury stock shares are

The charter of a corporation provides for the issuance of 100,000 shares of common stock. Assume that 40,000 shares were originally issued and 10,000 were subsequently reacquired. What is the number of shares outstanding?

A restriction/appropriation of retained earnings

Kansas Company acquired a building valued at $210,000 for property tax purposes in exchange for 12,000 shares of its $5 par common stock. The stock is widely traded and sold for $15 per share. At what amount should the building be recorded by Kansas Company?

When a corporation completes a 3-for-1 stock split

The par value of common stock must always be equal to its market value on the date the stock is issued.

Marcos Company, which had 35,000 shares of common stock outstanding, declared a 4-for-1 stock split.(a)What will be the number of shares outstanding after the split? (b)If the common stock had a market price of $280 per share before the stock split, what would be an approximate market price per share after the split?

Match the following stockholders' equity concepts to the appropriate term (a-h).​ -The date when dividends are actually distributed to stockholders A)cash dividend B)date of record C)Stock Dividends Distributable D)date of declaration E)treasury stock F)preferred stock G)date of payment H)Paid-In Capital in Excess of Par

Match the following stockholders' equity concepts to the appropriate term (a-h).​ -Owners of this class of stock are entitled to receive dividends first A)cash dividend B)date of record C)Stock Dividends Distributable D)date of declaration E)treasury stock F)preferred stock G)date of payment H)Paid-In Capital in Excess of Par

Prepare entries to record the transactions for Maine Corp.: (a)Issued 2,000 shares of $10 par common stock at $72 for cash.(b)Issued 2,500 shares of common stock in exchange for land with a fair market price of $130,000.(c)Purchased 400 shares of treasury stock at $70.(d)Sold the 400 shares of treasury stock purchased in (c) at $76.

Characteristics of a corporation include

Vincent Corporation has 100,000 shares of $100 par common stock outstanding. On June 30, Vincent Corporation declared a 5% stock dividend to be issued on July 30 to stockholders of record July 15. The market price of the stock was $132 a share on June 30. Journalize the entries required on June 30, July 15, and July 30.

A corporation has 50,000 shares of $28 par stock outstanding that has a current market value of $150 per share. If the corporation issues a 4-for-1 stock split, the market value of the stock will fall to approximately

The declaration, record, and payment dates 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.

The number of shares of outstanding stock is equal to the number of shares authorized minus the number of shares issued.

Selected transactions completed by Breezeway Construction during the current fiscal year are as follows: Journalize the transactions.

If 20,000 shares are authorized, 15,000 shares are issued, and 500 shares are held as treasury stock, a cash dividend of $1 per share would amount to $15,000.

Nexis Corp. issues 1,000 shares of $15 par value common stock at $22 per share. Journalize the transaction.