FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 13: Accounting for Corporations

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 21

True/False

Review LaterAdd Note

Review Later

A proxy is a document that gives a designated agent the right to vote a shareholder's stock.

A) True
B) False

Correct Answer

verified

Show Answer

Question 22

Multiple Choice

Review LaterAdd Note

Review Later

A company issued 60 shares of $100 par value common stock for $7,000 cash. The total amount of paid-in capital in excess of par is:

A) $600.
B) $7,000.
C) $100.
D) $6,000.
E) $1,000.

F) B) and E)
G) B) and C)

Correct Answer

verified

Show Answer

Question 23

Multiple Choice

Review LaterAdd Note

Stock that was reacquired and is still held by the issuing corporation is called:

In many states, the minimum amount that stockholders must contribute to the corporation, and which is intended to protect the creditors of the corporation, is called the:

Djarleen Company has 10,000 shares of $10 par preferred stock, which were issued at par. It also has 250,000 shares of common stock outstanding, and its total stockholders' equity equals $4,000,000. The book value per common share is:

The right of common shareholders to purchase their proportional share of any common stock later issued by the corporation is called a:

Mayan Company had net income of $132,000. The weighted-average common shares outstanding were 80,000. The company has no preferred stock. The company sold 3,000 shares before the end of the year. There were no other stock transactions. The company's earnings per share is:

Stated value stock is no-par stock that is assigned a "stated" value per share by the corporation's board of directors.

Common stock always carries a preference for receiving dividends over preferred stock.

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.

A company's board of directors votes to declare a cash dividend of $1.00 per share on its 12,000 common shares outstanding. The journal entry to record the payment of the cash dividend is:

Stockholders' equity consists of which of the following?

Common Stock Dividend Distributable is a liability account.

Boron Company is authorized to issue 50,000 shares of $50 par value, 8%, cumulative, fully participating preferred stock, and 750,000 shares of $5 par value common stock. Prepare journal entries to record the following selected transactions that occurred during the company's first year of operations: $\begin{array} { l l} \text {May 5}& \text { Exchanged 2,200 shares of preferred stock for a building with a market} \\& \text {value of \$ 135,000 . } \\ \text { July 20}& \text {Sold 1,550 shares of preferred stock for \( \$ 50 \) cash per share. } \\ \text {Dec. 20 }& \text { Sold 1,000 shares of preferred stock at \( \$ 52 \) cash per share.} \\\end{array}$

Achieving an increased return on common stock by paying dividends on preferred stock at a rate that is less than the rate of return earned with the assets invested from the preferred stock issuance is called:

A corporation issued 6,000 shares of its $2 par value common stock in exchange for land that has a market value of $84,000. The entry to record this transaction would include:

A corporation sold 14,000 shares of its $1 par value common stock at a cash price of $13 per share. The entry to record this transaction would include:

Sweet Company's outstanding stock consists of 1,000 shares of noncumulative 5% preferred stock with a $100 par value and 10,000 shares of common stock with a $10 par value. During the first three years of operation, the corporation declared and paid the following total cash dividends. $\begin{array}{l}\begin{array} { l r r } &\text { Dividend Declared }\\\text { year 1 } & \$ 2,000 \\\text { year 2 } & \$ 6,000 \\\text { year 3 } & \$ 32,000 \\\end{array}\end{array}$ The total amount of dividends paid to preferred and common shareholders over the three-year period is:

Par value of a stock refers to the:

Gracey's Department Stores has $200,000 of 6% noncumulative, nonparticipating, preferred stock outstanding. Gracey's also has $600,000 of common stock outstanding. During its first year, the company paid cash dividends of $30,000. This dividend should be distributed as follows: