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