fin accounting ch 10

Stockup, Inc. issued 1,000 shares of $1 par value common stock for $3,000. The Common Stock account will increase by __________.

$1,000

Aria's, Inc. has 1,000 shares of 5%, $100 par value cumulative preferred stock and 10,000 shares of $1 par value common stock outstanding. The company has not paid dividends in two years. In its third year, it paid the common shareholders a $2 per-share dividend. How much must each preferred shareholders have received?

$15 per share

Angel Enterprises reported the following stockholder's equity at year-end: Preferred Stock, 3%, $200 Par, 10,000 shares authorized, 600 shares outstanding $120,000 Common Stock, $3 Par, 1,000,000 shares authorized, 77,000 shares outstanding 231,000 Paid-in Capital in Excess of Par - Common 770,000 Retained Earnings 1,040,000 Treasury Stock (500 shares @ $25 per share) 12,500 What is the total stockholder's equity reported on the balance sheet for Angel?

$2,148,500

Angel Enterprises reported the following stockholder's equity at year-end: Preferred Stock, 3%, $200 Par, 10,000 shares authorized, 600 shares outstanding $120,000 Common Stock, $? Par, 1,000,000 shares authorized, 77,000 shares outstanding 231,000 Paid-in Capital in Excess of Par - Common 770,000 Retained Earnings 1,040,000 Treasury Stock (500 shares @ $25 per share) 12,500 What is the par value per share of Angel's Common Stock?

$3

Aria's, Inc. has 1,000 shares of 5%, $100 par value cumulative preferred stock and 10,000 shares of $1 par value common stock outstanding. The company has not paid dividends in two years. In its third year, it paid the common shareholders a $2 per-share dividend, plus the amount owed to preferred shareholders. What is the total amount of dividends paid?

$35,000

Which of the following equity-related transaction would NOT be included in the financing activities section of the statement of cash flows?

- Smith Company declared and distributed a 20% stock dividend on common shares outstanding during the year. - Matty Manufacturing declared and distributed a 10% stock dividend on common shares outstanding during the year.

On December 31, Joe Deer Corporation has the following data available: Net Income $200,000 Interest expense 20,000 Total assets at the beginning of the year 850,000 Total assets at the end of the year 780,000 Total common stockholders' equity at the beginning of the year 550,000 Total common stockholders' equity at the end of the year 490,000 What is Joe Deer's return on equity? (Round your answer to 2 decimal places.)

38.46%

Which of the following statements describing a corporation is true?

A corporation is subject to greater government regulation than a proprietorship or a partnership.

Kaldon, Inc. acquired 2,500 of its own shares at $30 per share. The shares are to be held in treasury. The par value of Kaldon's common stock is $4 per share. If Kaldon were to resell all its treasury stock at $32 per share, what journal entry would Kaldon make?

Cash 80,000 Treasury Stock 75,000 Paid-in capital from treasury stock transactions 5,000

Kaldon, Inc. had the following account balances related to treasury shares: Treasury Stock (2,500 shares @ $30 per share) - $75,000 Paid-in Capital from Treasury Stock Transactions - $2,000 If Kaldon, Inc. were to resell all its treasury stock at $34 per share, the journal would include which of the following?

Debit cash $85,000

Which of the following would be included in the journal entry to record the issuance of new shares of common stock to employees as part of a stock-based compensation plan?

Debit to Compensation Expense

A corporation issues 1,800 shares of $10 par value common stock in exchange for land with a current market value of $23,000. How would this be recorded in the Land account?

Debited for $23,000

Gloria Company has 100,000 shares of common stock authorized, 33,000 shares issued and outstanding. On September 1, 2018, the company declared a $3.30 per share dividend for those of record on October 1, 2018, to be paid on November 1, 2018. Based on this information, which of the following journal entries would Gloria Company make on November 1, 2018?

Dividends Payable 108,900 Cash 108,900

Which of the following best describes paid-in capital?

Investments by the stockholders of a corporation

Which of the following is not something that must be completed by the incorporators in order to bring a corporation into existence?

Issues shares of stock

Morton Company began operations on January 1, 2019. The company has the following items included in its stockholders' equity section of the balance sheet on December 31, 2020: 6% Preferred stock, $100 par, 100,000 shares authorized, 25,000 shares issued and outstanding $2,500,000 Common stock, $3 par, 500,000 share authorized; 150,000 shares issued and outstanding 450,000 Additional paid-in capital 2,250,000 Total dividends for 2019 & 2020 were: During 2019, Dividends not paid During 2020, Dividends Declared and paid $160,000 If Morton Company's preferred stock was noncumulative, how much of the 2020 dividends would have been distributed to preferred and common stockholders?

Preferred: $150,000; Common: $10,000

Smith Company has 800,000 shares authorized and 250,000 shares issued and outstanding of its $2 par value common stock. The stock is currently selling for $10 per share. If Smith Company declared and issued a 5% stock dividend, what journal entry would the company make?

Retained Earning 125,000 Common Stock 25,000 Paid-in capital in excess of par-common 100,000

Jordan Inc. had 20,000 shares of $2 par common stock outstanding when it decided to split its common stock 2-for-1. The shares were trading for $60 per share. How will total stockholder's equity change as a result of this stock split?

Total stockholder's equity is unchanged by a stock split

A company had the following treasury-stock related account balances: Treasury Stock - $250,000 Paid-in Capital from Treasury Stock Transactions - $25,000 If the company resells Treasury Stock that originally cost $60,000 for $40,000, then __________.

paid-in capital from treasury stock transactions is reduced $20,000

On December 31, Jones Corporation has the following data available: Net Income $190,000 Interest expense 20,000 Total assets at the beginning of the year 810,000 Total assets at the end of the year 750,000 Total stockholders' equity at the beginning of the year 600,000 Total stockholders' equity at the end of the year 480,000 What is return on assets? (Round your final answer to two decimal places)

24.36%

Smith Company has 800,000 shares authorized and 250,000 shares issued and outstanding of its $2 par value common stock. The stock is currently selling for $10 per share. If Smith Company declared and distributed a 30% stock dividend, what journal entry would the company make?

Retained Earnings 150,000 Common Stock 150,000

Hancock Company has 900,000 shares authorized and 350,000 shares issued and outstanding of its $2 par value common stock. The stock is currently selling for $20 per share. If Hancock Company declared and distributed a 30% stock dividend, what journal entry would the company make?

Retained Earnings 210,000 Common Stock 210,000

Mr. Cello bought 4,000 shares of Ventures, Inc. of $1 par value common stock directly from Ventures, Inc. for $80,000. Mr. Cello later sold 1,000 of these purchased shares to Mr. Bill for $30,000. Which of the following is true of the sale of these shares by Mr. Cello?

Shareholders' equity of Ventures, Inc. will be unaffected by the sale.

Preferred shareholders of Shelby International decided to convert some of their preferred shares into shares of Common Stock. The journal entry for this conversion will include all of the following except?

a credit to Retained Earnings