Chpt 13 Dynamic

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 did the preferred shareholders receive per share?

$15 per share

At the beginning of the year, the balance in retained earnings was $400,000. During the year sales were $1,000,000, of which $480,000 was collected and expenses were $750,000, of which $400,000 was paid. The company has outstanding 10,000 shares of 6%, $100 par value preferred stock and 100,000 shares of $.10 par value common stock. The dividend paid to the common shareholders was $1 per share. Calculate the ending retained earnings.

$490,000

Samson Company has 500,000 shares authorized and 250,000 shares issued and outstanding at $4.50 par value common stock. The current market price of the stock is $75 per share. On December 1, 20X4, the company declared and issued a 20% stock dividend. After the stock dividend, determine the new value for each of the following items: (1) Number of Shares Issued, (2) Par Value and (3) Market Price per Share.

(1) 300,000, (2) $4.50, (3) $62.50

Kramer Company has 800,000 shares authorized and 250,000 shares issued and outstanding at $4 par value common stock. The current market price of the stock is $60 per share. On December 1, 20X4, the company declared and issued a 30% stock dividend. After the stock dividend, determine the new value for each of the following items: (1) Number of Shares Issued, (2) Par Value and (3) Market Price per Share.

(1) 325,000, (2) $4.00, (3) $46.15

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. What is the amount of dividends paid?

35,000

Which of the following statements describing a corporation is true?

A corporation is subjected 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, Inc.'s common stock is $4 per share. If Kaldon, Inc. were to resell all its treasury stock at $28 per share, what journal entry would Kaldon, Inc. make?

Cash 70,000 Additional Paid-in Capital 5,000 Treasury Stock 75,000

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, Inc.'s common stock is $4 per share. If Kaldon, Inc. were to resell all its treasury stock at $32 per share, what journal entry would Kaldon, Inc. make?

Cash 80,000 Additional Paid-in Capital 5,000 Treasury Stock $75,000

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, 20X4, the company declared a $3.30 per share dividend for those of record on October 1, 20X4, to be paid on November 1, 20X4. Based on this information, which of the following journal entries would Gloria Company make on November 1, 20X4?

Dividends Payable 108,900 Cash 108,900

Which of the following best describes paid-in capital?

Investments by the stockholders of a corporation

Gloria Company has 100,000 shares of common stock authorized, 33,000 shares issued and outstanding. On September 1, 20X4, the company declared a $3.30 per share dividend for those of record on October 1, 20X4, to be paid on November 1, 20X4. Based on this information, which of the following journal entries would Gloria Company make on October 1, 20X4?

No journal entry is necessary

2% preferred stock Morton Company began operations on January 1, 20X5. The company has the following items included in its stockholders' equity section of the balance sheet. Using the given information, how much of the 20X6 dividends would have been distributed to preferred and common stockholders?

Preferred: $100,000; Common: $60,000

6% preferred stock Morton Company began operations on January 1, 20X5. The company has the following items included in its stockholders' equity section of the balance sheet. Using the given information, how much of the 20X6 dividends would have been distributed to preferred and common stockholders?

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

Morton Company began operations on January 1, 20X5. The company has the following items included in its stockholders' equity section of the balance sheet. 6% Preferred stock, $100 par, 100,000 shares authorized, 25,000 shares issued and outstanding --------------- If Morton Company's preferred stock were noncumulative, how much of the 20X6 dividends would have been distributed to preferred and common stockholders?

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

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 issued a 30% stock dividend, what journal entry would the company make?

Retained Earnings 210,000 Common Stock 210,000

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 issued a 5% stock dividend, what journal entry would the company make?

Retained Earnings 350,000 Common Stock 35,000 Additional Paid-in Capital 315,000

Gloria Company has 100,000 shares of common stock authorized, 33,000 shares issued and outstanding. On September 1, 20X4, the company declared a $3.30 per share dividend for those of record on October 1, 20X4, to be paid on November 1, 20X4. Based on this information, which of the following journal entries would Gloria Company make on September 1, 20X4.

Retained earnings 108,900 Dividends payable 108,900

Mr. Cello bought 4,000 shares of Ventures, Inc. at $1 par value common stock directly from Ventures, Inc. for $80,000. Which of the following is true when Mr. Cello sold 1,000 of his shares to Mr. Bill for $30,000?

Shareholders' equity will be unaffected by the sale.

A company has treasury stock which cost $50,000. If it resells this stock for $40,000, then __________.

additional paid-in capital is reduced $10,000

Stock that has dividends in arrears is called __________.

cumulative preferred stock

The preferred stock dividend amount is calculated by:

multiplying the dividend rate times the par value per share times the number of preferred stock shares outstanding.

Retained earnings is:

net income minus dividends since the inception of the company.