Chapter 11- Accounting 202 (online quizzes)

Below is the information relating to the stockholders' equity of Blue Corporation as of December 31, 2013. 10% preferred stock, $100 par $420,000 Common stock, $20 par, 500,000 sares authorized, 100,000 shares issued and outstanding 2,000,000 Additional paid-in capital: common stock 2,300,000 Retained earnings 755,000 How many shares of preferred stock are issued and outstanding?

4,200 shares

Which of the following is true regarding corporations?

A corporation is a separate legal entity that may sue and be sued as if it were a person

The date the board of directors votes to pay a dividend is called the:

Declaration date

The costs of bringing a corporation into existance, including legal fees, promoter fees, and amounts paid to the state are called:

Organizational costs

A corporation's distribution of additional shares of its own stock to its stockholders without any cash exchanging hands in return is called a:

Stock Dividend

Owners of preferred stock do not have

Voting rights

A corporation issued 400 shares of $10 par value common stock in payment of a $4,500 bill from its attorneys for assistance in filing the initial charter for the corporation. The entry to record this transaction will include:

a $4,000 credit to common stock

A corporation sold 14,000 shares of its $10 par value common stock for $13 per share. The entry to record this transaction would include:

a credit to Common stock for $140,000

A corporation reacquired 600 shares of its $10 par value common stock in February for $35,000 cash. The journal entry to record this transaction would include:

a debit to Treasury stock for $35,000

A corporation issued 6,000 shares of its $10 par value common stock in exchange for land that is currently advertised for sale at $84,000. The stock is currently trading for $16 per share. The entry to record this transaction would include:

a debit to land for $96,000

In the stockholders' equity section of the balance sheet, the classification of capital stock consists of:

common stock and preferred stock

What is the cumulative effect of the declaration and payment of a cash dividend on the basic accounting equation?

decrease in assets; decrease in stockholders' equity

The purchase of treasury stock:

decreases common stock outstanding

A 2-for-1 stock split:

doubles the number of shares outstanding and divides the par value in half

A corporation's legal capital can be defined as the total par value of the shares:

issued

Gerber Corporation declared a 10% stock dividend. Retained earnings will be reduced for an amount equal to the number of shares to be distributed multiplied by the

market value per share

The two parts of stockholders' equity are:

paid-in capital and retained earnings

A stock dividend transfers:

retained earnings to paid-in capital

Treasury stock represents:

shares previously owned by investors but which have been repurchased by the corporation

Prior period adjustments are reported in the

statement of retained earnings

Which of the following would not affect total retained earnings?

stock splits

When no-par stock is issued:

the entire amount is credited to the Common stock account

Tandem Corporation is authorized to issue 1,000,000 shares of $5 par value common stock. The corporation issued 500,000 shares of the stock for cash at $20 per share. During the year, the corporation earned $400,000 and declared and paid a cash dividend of $50,000. The total paid-in capital of Tandem Corporation after the first year is:

$10,000,000

Bob's Corporation was organized on January 1, 2013. During 2014, the corporation issued 20,000 shares of stock at $12 per share, purchased 3,000 shares of treasury stock at $13 per share, and had net income of $150,000. What is the total amount of stockholders' equity at December 31, 2013?

$351,000

Below is the information relating to the stockholders' equity of Blue Corporation as of December 31, 2013. 10% preferred stock, $100 par $420,000 Common stock, $20 par, 500,000 sares authorized, 100,000 shares issued and outstanding 2,000,000 Additional paid-in capital: common stock 2,300,000 Retained earnings 755,000 Compute total paid-in capital.

$4,720,000

A compnay had a beginning balance in retained earnings of $43,000. It had net income of $6,000 and paid out cash dividends of $5,625 in the current year. The ending balance in retained earnings is:

$43,375

Below is the information relating to the stockholders' equity of Blue Corporation as of December 31, 2013. 10% preferred stock, $100 par $420,000 Common stock, $20 par, 500,000 sares authorized, 100,000 shares issued and outstanding 2,000,000 Additional paid-in capital: common stock 2,300,000 Retained earnings 755,000 Total stockholders' equity is:

$5,475,000

The board of directors votes to declare a cash dividend of $1.00 per share. The company has 15,000 shares authorized, 10,000 shares issued and 9,500 shares outstanding. The total amount of the dividend is:

$9,500

The following data were reported by a corporation: Authorized shares 20,000 Issued shares 15,000 Treasury shares 3,000 The number of shares outstanding is:

12,000