Ch 10 Mid Week
The ____________ per share is the amount of income attributable to each share of common stock.
earnings
If a corporation issues 1,500 shares of $2.40 par value common stock for $13,500, the journal entry would include a credit to
Common Stock for $3,600.
What are two main advantages that a corporation has over a proprietorship and a partnership? What are two main disadvantages of a corporation? Describe the authority structure of a corporation. Who holds ultimate power?
Corporation's advantages: Continuous life and transferability of ownership Limited liability of the stockholders Corporations' disadvantages: Government regulation Double taxation of distributed profits The authority structure of a corporation begins with shareholders, who hold ultimate power. Shareholders elect the board of directors who in turn appoint officers. The board elects a chairperson (CEO), who is usually the most powerful person in the organization. The board designates the president (COO) and various vice presidents.
Shelac Company reports the following information for its fiscal year end of March 31, 2019: What is the total paid-in capital for Shelac Company at March 31, 2019?
$423 million
Which of the following classifications represents the most shares of common stock?
Authorized shares
How does the declaration of a cash dividend affect a company's assets, liabilities, and equity?
It results in an increase to liabilities and a decrease to stockholders' equity, while assets remain the same.
Corporation paid $23 per share to purchase 600 shares of its common stock as treasury stock. The stock was originally issued at $16 per share. Which of the following would be the journal entry that Quebec would make to record the purchase of the treasury stock?
Journal Entry Date Accounts Debit Treasury Stock 13,800 Credit Cash 13,800
For cash dividends, the journal entry on the date of record
No journal entry is required on the date of record.
