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Legal capital per share cannot be equal to 1. Barr, Inc. reports $3,000,000 of common stock, and $4,500,000 of additional paid-in capital on its balance sheet. The number of common shares issued and outstanding is 500,000 shares. The book value per share is a. $15. b. $9. c. $6. d. not determinable. 2. Which of the following is an incorrect statement about a corporation? a. A corporation is an entity separate and distinct from its ...

Other / Other 05 Apr 2016

Which of the following represents the largest number of common shares 1. Simon Company issued 6,000 shares of its $5 par value common stock in payment of its attorney's bill of $45,000. The bill was for services performed in helping the company incorporate. Simon should record this transaction by debiting a. Legal Expense for $30,000. b. Legal Expense for $45,000. c. Organization Expense for $30,000. d. Organization Expense for $45,0 ...

Other / Other 05 Apr 2016

What will be the effect on total stockholders’ equity 1. Jansen Packaging Corporation began business in 2008 by issuing 40,000 shares of $5 par common stock for $8 per share and 10,000 shares of 6%, $10 par preferred stock for par. At year end, the common stock had a market value of $10. On its December 31, 2008 balance sheet, Jansen Packaging would report a. Common Stock of $400,000. b. Common Stock of $200,000. c. Common Sto ...

Other / Other 05 Apr 2016

Triad’s total stockholders’ equity was 1. If preferred stock is cumulative, the a. preferred dividends not declared in a given year are called dividends in arrears. b. preferred shareholders and the common shareholders receive equal dividends. c. preferred shareholders and the common shareholders receive the same total dollar amount of dividends. d. common shareholders will share in the preferred dividends. 2. The Ni ...

Other / Other 05 Apr 2016

Information that is not generally reported for each class 1. Each of the following is reported for common stock except the a. par value. b. shares issued. c. shares outstanding. d. liquidation value. 2. Paid-in capital from treasury stock would appear on a balance sheet under the category a. capital stock. b. treasury stock. c. additional paid-in capital. d. contra to owners' equity. 3. Two classifications appearing in the paid- ...

Other / Other 05 Apr 2016

Four thousand shares of treasury stock 1. Treasury stock is generally accounted for by the a. cost method. b. market value method. c. par value method. d. stated value method. 2. Treasury Stock is a(n) a. contra asset account. b. retained earnings account. c. asset account. d. contra stockholders’ equity account. 3. Four thousand shares of treasury stock of Meyer, Inc., previously acquired at $12 per share, are sold at $ ...

Other / Other 05 Apr 2016

Which of the following factors does not affect the initial market 1. If a corporation has only one class of stock, it is referred to as a. Classless Stock. b. Preferred Stock. c. Solitary Stock. d. Common Stock. 2. The term residual claim refers to a shareholder's right to a. receive dividends. b. share in assets upon liquidation. c. acquire additional shares when offered. d. exercise a proxy vote. 3. Which of the following factor ...

Other / Other 05 Apr 2016

The acquisition of treasury stock by a corporation increases True or False: 1. The acquisition of treasury stock by a corporation increases total assets and total stockholders' equity. 2. Treasury stock should not be classified as a current asset. 3. Treasury stock purchased for $25 per share that is reissued at $20 per share, results in a Loss on Sale of Treasury Stock being recognized on the income statement. 4. Treasury stock is a ...

Other / Other 05 Apr 2016

The cost of a noncash asset acquired in exchange True or False: 1. A successful corporation can have a continuous and perpetual life. 2. Organizational costs are capitalized by debiting an intangible asset entitled Organization Costs. 3. The cash proceeds from issuing par value stock may be equal to or greater than, but not less than par value. 4. The cost of a noncash asset acquired in exchange for common stock should be either the fa ...

Other / Other 05 Apr 2016

Preferred stockholders generally do not have the right to vote True or False: 1. Preferred stock has contractual preference over common stock in certain areas. 2. Preferred stockholders generally do not have the right to vote for the board of directors. 3. Dividends in arrears on cumulative preferred stock are considered a liability. 4. In published annual reports, subclassifications within the stockholders' equity section are seldom p ...

Other / Other 05 Apr 2016