Chapter 10 Post Quiz Acct 2301

​Wetzel, Inc. has 10,000 shares of cumulative preferred stock​ outstanding, with annual dividends paid at a rate of $4 per share.​ Wetzel, Inc. also has 40,000 shares of common stock outstanding. Preferred dividends are in arrears from the prior year and the number of shares remained the same for this year and last year. If​ Wetzel, Inc. declares a $300,000 dividend in the current​ year, each outstanding share of common stock would​ receive: (Round your answer to the nearest​ cent.)

5.50

​Peter's Computers purchased 2,000 shares of its own $1 par value common stock for $100,000. As a result of this​ transaction

Peter's stockholders' equity decreased $100,000

​Zeman, Inc. declares and distributes a​ 10% common stock dividend when it has 30,000 shares of $10 par value common stock outstanding. If the market value of the common stock is $30​, the journal entry to record the stock dividend would include​ a

credit to Paid−in Capital in Excess of Par—Common $60,000.

A company issues​ 1,000,000 shares of​ $0.90 par​ value, cumulative preferred stock for $19,000,000. The stated dividend is​ $1 per share. Which journal entry is needed for the​ sale

debit Cash $19,000,000​, credit Preferred Stock$500,000 and credit Paid−in Capital in Excess of Par—Preferred $18,500,000

Pillsbury Company declares and distributes a 30​% common stock dividend when it has 60,000 shares of​ $10 par common stock outstanding. The market price per share is $55 at the date of declaration. Which journal entry is​ prepared?

debit Retained Earnings $180,000 and credit Common Stock $180,000

Smith Corporation purchases 40,000 shares of its own $10 par value common stock for $70 per share. What will be the effect on​ stockholders' equity?

decrease 2,8,000,000

Paltrowski Company issued 1 million shares of no − par common stock with a stated value of $8. The issue price was $44 per share. Which journal entry is​ prepared?

debit Cash $44 ​million, credit Common Stock $8 million and credit Paid − in Capital in Excess of Stated Value—Common $36 million

When 100 shares of​ $1 par value Common Stock are issued at $29 per​ share, Paid−in Capital in Excess of Par—Common ​will:

increase $2,800

To record a 14​% stock​ dividend, accountants use​ ________. To record a 42​% stock​ dividend, accountants use​ ________.

market price per​ share; par value per share

A share of​ 5% preferred stock has a par value of $30 and market value of $80. The owners of the preferred stock will receive a cash dividend​ of: (Round your answer to the nearest​ cent.)

$1.50 per share

Burkert Company has​ 50,000 shares of​ $1 par value common stock issued and outstanding. The company also has 8,000 shares of​ $100 par​ value, 5​% cumulative preferred stock outstanding. Burkert did not pay the preferred dividends in 2018 and 2019. For the common stockholders to receive a dividend in​ 2020, the board of directors must declare dividends in excess​ of:

$120,000

What is the net income or net loss for the fiscal year ending January​ 31, 2020?

$14,000,000 net loss

​Wetzel, Inc. has 40,000 shares of cumulative preferred stock​ outstanding, with annual dividends paid at a rate of $1 per share.​ Wetzel, Inc. also has 20,000 shares of common stock outstanding. Preferred dividends are in arrears from the prior year and the number of shares remained the same for this year and last year. If​ Wetzel, Inc. declares a $600,000 dividend in the current​ year, each outstanding share of common stock would​ receive: (Round your answer to the nearest​ cent.)

$28.00

Lisa Laskowski Company reports the following information at the current fiscal year end of December​ 31: Common​ Stock, $0.10 par value per share-$98 million Paid−in Capital in Excess of Par− Common - 900 million Retained Earnings - 700 million Total​ Stockholders' Equity- $1,698 million What was the average selling price for the common stock​ issued? (Round your final answer to the nearest​ cent.

1.02 per share

Orlando Corporation incorporated on January 2 of the current year. During the​ year, Orlando had the following​ transactions: times • issued 60,000 shares of common stock at $35 per share. The par value per share is​ $1. • purchased 3,000 shares of treasury stock at $26 per share • had net income of​ $400,000. What is the total amount of​ stockholders' equity as of December 31 of the current​ year?

2,422,000

Mr.​ Seider, a shareholder in the Greenfield​ Corporation, owns 7,000 shares of their common​ stock, which represents 26​% of the outstanding common stock of Greenfield Corporation. Mr. Seider receives a 10​% stock dividend. After the stock​ dividend, what is Mr.​ Seider's ownership in Greenfield​ Corporation's common​ stock?

26% ownership

Mews Corporation has the following information reported on the balance sheet as of December 31 of the current​ year: Common​ Stock, $10 par value​ (authorized 20,000​ shares)=$50,000 Treasury Stock ​(1,000 ​shares)= ​$30,000 Based on the information​ above, how many shares of common stock have been​ issued?

5,000

Corrao Foods Corporation has 4,000 shares of 6​%, $20 par​ value, cumulative preferred stock and​ 150,000 shares of​ $1 par value common stock outstanding at December​ 31, 2019 and December​ 31, 2020. In​ 2019, a $3,000 dividend was declared and paid. In​ 2020, $36,000 of dividends are declared and paid. What are the dividends received by the preferred stockholders in 2020​ (assuming no dividends in arrears prior to​ 2019)

6,600

If a corporation issues 3,000 shares of​ $1 par value common stock for $10,000​, the journal entry would include a credit​ to

Common Stock for 3,000 (3,000 * 1=3,00 C/S) Dr: Cash 10,000 Cr: Common Stock 3,000 Cr: Paid−in Capital in Excess of Par—Common 7,000

Miller Corporation issued 6,000 shares of its​ $5 par value common stock in payment for attorney services billed at $54,000. Miller​ Corporation's stock has been actively trading at $9 per share. The journal entry for this transaction would include a credit​ to

Paid−in Capital in Excess of Par—Common for $24,000 1.) 6000 * 5= 30,000 2.)54,000-30,000= $24,000

​Zeman, Inc. declares and distributes a​ 10% common stock dividend when it has 30 comma 00030,000 shares of $ 20$20 par value common stock outstanding. If the market value of the common stock is $ 25$25​, the journal entry to record the stock dividend would include​ a

credit to Paid−in Capital in Excess of Par—Common $15,000