Question 1

Match the following stockholders' equity concepts to the appropriate term (a-h) .​
-The day of the event that creates a liability to company

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 Par I) A) and H)
J) E) and G)

Question 2

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?

Accepted Answer

A)   $60,000
B)   $180,000
C)   $210,000
D)   $120,000E) A) and D)
F) None of the above

Question 3

The charter of a corporation provides for the issuance of 100,000 shares of common stock.Assume that 45,000 shares were originally issued and 5,000 were subsequently reacquired.What is the amount of cash dividends to be paid if a $2 per share dividend is declared?

Accepted Answer

A)   ​$80,000
B)   ​$10,000
C)   ​$90,000
D)   ​$100,00E) A) and B)
F) None of the above

Question 4

Which of the following is not a prerequisite to paying a cash dividend?

Accepted Answer

A)   formal action by the board of directors
B)   market value in excess of par value per share
C)   sufficient cash
D)   sufficient retained earningsE) C) and D)
F) All of the above

Question 5

The liability for a dividend is recorded on which of the following dates?

Accepted Answer

A)   the date of record
B)   the date of payment
C)   the last day of the fiscal year
D)   the date of declarationE) None of the above
F) B) and C)

Question 6

Which statement below is not a reason for a corporation to buy back its own stock?

Accepted Answer

A)   resale to employees
B)   bonus to employees
C)   for supporting the market price of the stock
D)   to increase the shares outstandingE) A) and C)
F) None of the above

Question 7

When common stock is issued in exchange for land,the land should be recorded in the accounts at the par value of the stock issued.

Accepted Answer

A) True 
 B)False

Question 8

The initial stockholders of a newly formed corporation are called directors.

Accepted Answer

A) True 
 B)False

Question 9

Characteristics of a corporation include

Accepted Answer

A)   a limited lifespan
B)   direct management by the shareholders (owners) 
C)   its inability to own property
D)   shareholders who have limited liabilityE) A) and C)
F) B) and C)

Question 10

Match the following stockholders' equity concepts to the appropriate term (a-h) .​
-Owners of this class of stock are entitled to receive dividends first

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 Par I) None of the above
J) B) and C)

Question 11

Which of the following is not classified as paid-in capital on the balance sheet?

Accepted Answer

A)   common stock
B)   common stock distributable
C)   excess of issue price over par
D)   treasury stockE) A) and D)
F) B) and D)

Question 12

Cash dividends become a liability to a corporation on the date of record.

Accepted Answer

A) True 
 B)False

Question 13

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)

Question 14

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 15

Treasury stock should be reported in the financial statements of a corporation as a(n)

Accepted Answer

A)   investment
B)   liability
C)   current asset
D)   deduction from stockholders' equityE) None of the above
F) B) and D)

Question 16

If common stock is issued for an amount greater than par value,the excess should be credited to

Accepted Answer

A)   Retained Earnings
B)   Cash
C)   Legal Capital
D)   Paid-In Capital in Excess of ParE) B) and D)
F) None of the above

Question 17

Match 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 Par I) C) and H)
J) B) and E)

Question 18

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) All of the above
F) None of the above

Question 19

The par value of stock is an assigned per share amount defined in many states as legal capital.

Accepted Answer

A) True 
 B)False

Question 20

Journalize the following selected transactions completed during the current fiscal year:

Accepted Answer

The answer of Journalize the following selected transactions completed during...

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

Match the following stockholders' equity concepts to the appropriate term (a-h) .​ -Owners of this class of stock are entitled to receive dividends first

Correct AnswerverifiedShow Answer

Characteristics of a corporation include

Correct AnswerverifiedShow Answer

Journalize the following selected transactions completed during the current fiscal year:

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.

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Which of the following is not classified as paid-in capital on the balance sheet?

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The liability for a dividend is recorded on which of the following dates?

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Which of the following is not a prerequisite to paying a cash dividend?

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A restriction / appropriation of retained earnings

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Cash dividends become a liability to a corporation on the date of record.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Treasury stock should be reported in the financial statements of a corporation as a(n)

Correct AnswerverifiedShow Answer

The par value of stock is an assigned per share amount defined in many states as legal capital.

Correct AnswerverifiedShow Answer

Which statement below is not a reason for a corporation to buy back its own stock?

Correct AnswerverifiedShow Answer

If common stock is issued for an amount greater than par value,the excess should be credited to

Correct AnswerverifiedShow Answer

Match the following stockholders' equity concepts to the appropriate term (a-h) .​ -The day of the event that creates a liability to company

Correct AnswerverifiedShow Answer

The charter of a corporation provides for the issuance of 100,000 shares of common stock.Assume that 45,000 shares were originally issued and 5,000 were subsequently reacquired.What is the amount of cash dividends to be paid if a $2 per share dividend is declared?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

The initial stockholders of a newly formed corporation are called directors.

Correct AnswerverifiedShow Answer

When common stock is issued in exchange for land,the land should be recorded in the accounts at the par value of the stock issued.

Correct AnswerverifiedShow Answer

Match the following stockholders' equity concepts to the appropriate term (a-h) . -Owners of this class of stock are entitled to receive dividends first

Correct Answer
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Match the following stockholders' equity concepts to the appropriate term (a-h) . -The day of the event that creates a liability to company

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

Correct Answer
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