acc exam 2
common stock paid in capital in excess of stated value- common stock
Aretha franklin inc. issues 10,000 shares of $1 stated value no-par value common stock at $8 per share. the entry for the issue will include a debit to cash for $80,000 and credits to what?
paid in capital in excess of par- preferred stock for $175,000
Campbell industries issued 5,000 shares of $10 par value preferred stock, which sold for $45 per share. the journal entry for this transaction would include a credit to:
debit cash credit common stock
Edwards enterprises issuers 1,000 shares of common stock with no stated value and no-par value. the stock sole for $23 per share. Edwards journal entry for this transaction would include what?
has been declared
a cash dividend is considered a liability to a company when it what?
loss over the life of the company
a debit balance in retained earnings indicates that a company has a net...
decreases, increases
a stock dividend ______ retained earnings and _______ paid in capital.
debit income summary credit retained earnings
assuming that net income for sponge bob co. in its first year of operations is $130,000, the closing entry is...
paid in capital from treasury stock $8,000
big head Todd sells 2,000 shares of treasury stock purchased for $32,000 at $20 per share. the entry to record this sale should include a credit to what?
adjusting
corporations that record an income tax expense on their income statement journalize income tax entries during the _____ process.
voting rights, preemptive rights, and residual claim rights.
each share of common stock gives the stockholder which of the following ownership rights?
flores common stock- remain the same rogers common stock- decrease by threefold
flores industries stockholders received one share of common stock for every 10 shares of stock they previously held. rogers company's stockholders received three shares of common stock for every one share of stock they previously held. how would the par value of flores stock change compared to rogers stock?
cash dividend- decreases total stockholders equity, stock dividend does not
how does a stock dividend differ from a cash dividend?
stockholders equity statement
if a company does not want to present a detailed stockholders equity section in the balance sheet, they may prepare a what?
common stock & preferred stock
in the stockholders equity section of the balance sheet, the classification of capital stock consists of what?
Paid-in Capital in Excess of Par Value - Common Stock
mary wells, inc. issues 2,000 shares of $10 par value common stock at $22 per share. the entry for the issue will include a credit of $24,000 to...
a credit of $8,000 to dividends payabel
on december 31, 2020, little richard, inc. has 2,000 shares of 6% $100 par value cumulative preferred stock and 30,000 shares of $10 par value common stock outstanding. on december 31, 2020, the directors declare an $8,000 cash dividend. the entry to record the declaration of the dividend would include.
cash
the most common form of dividend that a company pays out is a ______ dividend.
additional paid in capital, no effect retained earnings, no effect
what correctly describes how the purchase of treasury stock affects the amount reported in the balance sheet for additional paid-in capital and retained earnings?
decreases common stock outstanding
what happens with the purchase of treasury stock?
treasury stock
what is reported on the balance sheet as a deduction from total paid in capital and retained earnings?
prior period adjustment
what should be reported in the retained earnings statement as an adjustment of the beginning balance?
common stock is issued for services or non cash assets
what should it be when it is either the fair market value of the consideration given up or the consideration received, whichever is more clearly evident?
declaration date and payment date
when considering cash dividend on stocks, which of the following dates requires a journal entry?
number of authorized shares
which number will be largest?
a corporation may be formed in writing, orally, or implicitly
which of the following is an incorrect statement about a corporation?
Government Regulation
which of the following is considered a disadvantage of a corporation?
the par value of common stock issued
which of the following needs to be reported in the capital stock section of the balance sheet?
legality of a cash dividend depends on state corporation laws.
which of the following statements about as cash dividend is correct?
many states require a corporation to restrict retained earnings for the cost of treasury stock purchased.
which of the following statements about retained earnings restrictions is correct?
net income
which of the following will always increase the balance of retained earnings?