ACCT Ch 11 Practice 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 shares 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 purchase of treasury stock: A. has no effect on common stock outstanding B. decreases common stock issued C. decreases retained earnings D. decreases common stock authorized E. decreases common stock outstanding
C. decreases common stock outstanding
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
A corporation's legal capital can be defined as the total par value of the shares:
issued
The costs of bringing a corporation into existence, including legal fees, promoter fees, and amounts paid to the state are called:
organizational costs
The two parts of stockholders' equity are:
paid-in capital and retained earnings
Treasury stock represents:
shares previously owned by investors but which have been repurchased by the corporation
When no-par stock is issued:
the entire amount is credited to the Common stock account
Owners of preferred stock do not have:
voting rights
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 2013, 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 shares 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 company 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 shares 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 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