Chapter 11: Quiz (85%)

The following data were reported by a corporation: Authorized shares - 34,000 Issued shares - 29,000 Treasury shares - 10,500 The number of outstanding shares is:

18,500.

A corporation issued 250 shares of its $5 par value common stock in payment of a $3,300 charge from its accountant for assistance in filing its charter with the state. The entry to record this transaction will include:

A $1,250 debit to Organization Expenses.

A corporation sold 16,500 shares of its $10 par value common stock at a cash price of $13 per share. The entry to record this transaction would include:

A credit to Common Stock for $165,000.

Percy Corporation was formed on January 1. The corporate charter authorized 100,000 shares of $10 par value common stock. During the first month of operation, the corporation issued 240 shares to its attorneys in payment of a $4,400 charge for drawing up the articles of incorporation. The entry to record this transaction would include:

A debit to Organization Expenses for $4,400.

Fetzer Company declared a $0.20 per share cash dividend. The company has 340,000 shares authorized, 323,000 shares issued, and 13,600 shares in treasury stock. The journal entry to record the payment of the dividend is:

Debit Common Dividends Payable $61,880; credit Cash $61,880.

A corporation issued 5,700 shares of $10 par value common stock in exchange for some land with a market value of $84,000. The entry to record this exchange is:

Debit Land $84,000; credit Common Stock $57,000; credit Paid-In Capital in Excess of Par Value, Common Stock $27,000.

Global Corporation had 57,000 shares of $20 par value common stock outstanding on July 1. Later that day the board of directors declared a 15% stock dividend when the market value of each share was $27. The entry to record the dividend declaration is:

Debit Retained Earnings $230,850; credit Common Stock Dividend Distributable $171,000; credit Paid-In Capital in Excess of Par Value, Common Stock $59,850.

Eastline Corporation had 12,500 shares of $5 par value common stock outstanding when the board of directors declared a stock dividend of 4,375 shares. At the time of the stock dividend, the market value per share was $17. The entry to record this dividend is:

Debit Retained Earnings $74,375; credit Common Stock Dividend Distributable $74,375.

Hutter Corporation declared a $0.50 per share cash dividend on its common shares. The company has 44,000 shares authorized, 23,400 shares issued, and 17,600 shares of common stock outstanding. The journal entry to record the dividend declaration is:

Debit Retained Earnings $8,800; credit Common Dividends Payable $8,800.

Torino Company has 2,800 shares of $50 par value, 6.5% cumulative and nonparticipating preferred stock and 28,000 shares of $10 par value common stock outstanding. The company paid total cash dividends of $8,000 in its first year of operation. The cash dividend that must be paid to preferred stockholders in the second year before any dividend is paid to common stockholders is:

$10,200.

Sweet Company's outstanding stock consists of 1,400 shares of cumulative 6% preferred stock with a $100 par value and 11,400 shares of common stock with a $10 par value. During the first three years of operation, the corporation declared and paid the following total cash dividends. Dividends Declared & Paid Year 1 - $3,400 Year 2 - $7,400 Year 3 - $39,000 The amount of dividends paid to preferred and common shareholders in year 3 is:

$14,400 preferred; $24,600 common.

Ultimate Sportswear has $170,000 of 10% noncumulative, nonparticipating, preferred stock outstanding. Ultimate Sportswear also has $570,000 of common stock outstanding. In the company's first year of operation, no dividends were paid. During the second year, the company paid cash dividends of $37,000. This dividend should be distributed as follows:

$17,000 preferred; $20,000 common.

James Company has 2,800 shares of $100 par preferred stock, which were issued at par. It also has 17,000 shares of common stock outstanding, and its total stockholders' equity equals $582,600. The book value per common share is:

$17.80.

A company issued 200 shares of $100 par value common stock for $23,800 cash. The total amount of paid-in capital in excess of par is:

$3,800.

A company has 875 shares of $65 par value preferred stock outstanding. It also has 15,000 shares of common stock outstanding, and the total value of its stockholders' equity is $566,875. The company's book value per common share equals:

$37.79.

A company had a beginning balance in retained earnings of $424,000. It had net income of $62,000 and declared and paid cash dividends of $67,000 in the current period. The ending balance in retained earnings equals:

$419,000.

A company had a beginning balance in retained earnings of $43,100. It had net income of $6,100 and declared and paid cash dividends of $5,650 in the current period. The ending balance in retained earnings equals:

$43,550.

Fargo Company's outstanding stock consists of 900 shares of noncumulative 5% preferred stock with a $10 par value and 3,500 shares of common stock with a $1 par value. During the first three years of operation, the corporation declared and paid the following total cash dividends. Dividends Declared & Paid year 1 - $25,000 year 2 - $8,000 year 3 - $34,000 The amount of dividends paid to preferred and common shareholders in year 1 is:

$450 preferred; $24,550 common.

Prior to May 1, Fortune Company has never had any treasury stock transactions. A company repurchased 140 shares of its common stock on May 1 for $7,000. On July 1, it reissued 70 of these shares at $52 per share. On August 1, it reissued the remaining treasury shares at $49 per share. What is the balance in the Paid-in Capital, Treasury Stock account on August 2?

$70.

A company's board of directors votes to declare a cash dividend of $.80 per share of common stock. The company has 16,000 shares authorized, 11,000 issued, and 10,500 shares outstanding. The total amount of the cash dividend is:

$8,400.