Recent Question

Evergreen Manufacturing Corporation 1. Karl Corporation was organized on January 2, 2010. During 2013, Karl issued 20,000 shares at $24 per share, purchased 3,000 shares of treasury stock at $26 per share, and had net income of $300,000. What is the total amount of stockholders’ equity at December 31, 2013? a. $640,000 b. $702,000 c. $708,000 d. $720,000 2. Evergreen Manufacturing Corporation purchased 4,000 shares of it ...

Other / Other 22 Mar 2016

Stock dividends and stock splits 1. Common Stock Dividends Distributable is classified as a(n) a. asset account. b. stockholders' equity account. c. expense account. d. liability account. 2. The effect of a stock dividend is to a. decrease total assets and stockholders' equity. b. change the composition of stockholders' equity. c. decrease total assets and total liabilities. d. increase the book value per share of common ...

Other / Other 22 Mar 2016

amounts debited to Stock Dividends 1. On December 31, 2013, Stock, Inc. has 3,000 shares of 6% $100 par value cumulative preferred stock and 45,000 shares of $10 par value common stock outstanding. On December 31, 2013, the directors declare a $15,000 cash dividend. The entry to record the declaration of the dividend would include: a. a credit of $3,000 to Cash Dividends. b. a note in the financial statements that dividends of $3 per s ...

Other / Other 22 Mar 2016

most common types in practice 1. Dividends are predominantly paid in a. earnings. b. property. c. cash. d. stock. 2. If a stockholder receives a dividend that reduces retained earnings by the fair market value of the stock, the stockholder has received a a. large stock dividend. b. cash dividend. c. contingent dividend. d. small stock dividend. 3. Of the various dividends types, the two most common types in practic ...

Other / Other 22 Mar 2016

per share amount normally assigned by the board of directors 1. A stockholder who receives a stock dividend would a. expect the market price per share to increase. b. own more shares of stock. c. expect retained earnings to increase. d. expect the par value of the stock to change. 2. When stock dividends are distributed, a. Common Stock Dividends Distributable is decreased. b. Retained Earnings is decreased. c. Paid-in ...

Other / Other 22 Mar 2016

Corporations generally issue stock dividends 1. Marion, Inc. has 5,000 shares of 5%, $100 par value, noncumulative preferred stock and 20,000 shares of $1 par value common stock outstanding at December 31, 2013. There were no dividends declared in 2012. The board of directors declares and pays a $55,000 dividend in 2013. What is the amount of dividends received by the common stockholders in 2013? a. $0 b. $25,000 c. $55,000 d. $30,00 ...

Other / Other 22 Mar 2016

The concept of an "artificial being" 1. A factor which distinguishes the corporate form of organization from a sole proprietorship or partnership is that a a. corporation is organized for the purpose of making a profit. b. corporation is subject to more federal and state government regulations. c. corporation is an accounting economic entity. d. corporation’s temporary accounts are closed at the end of the accounting period. ...

Other / Other 22 Mar 2016

the formation of a corporation 1. Which of the following statements is not considered a disadvantage of the corporate form of organization? a. Additional taxes b. Government regulations c. Limited liability of stockholders d. Separation of ownership and management 2. What is ordinarily the first step in the formation of a corporation? a. Development of by-laws for the corporation b. Issuance of the corporate charter c. A ...

Other / Other 22 Mar 2016

Blaine Corporation 1. Darman Company issued 500 shares of no-par common stock for $5,500. Which of the following journal entries would be made if the stock has a stated value of $2 per share? a. Cash 5,500 Common Stock 5,500 b. Cash 5,500 Common Stock 1,000 Paid-in Capital in Excess of Par 4,500 c. Cash 5,500 Common Stock 1,000 Paid-in Capital in Excess of Stated Value 4,500 d. Common Stock 5,500 Cas ...

Other / Other 22 Mar 2016

The authorized stock of a corporation 1. A corporation has the following account balances: Common stock, $1 par value, $60,000; Paid-in Capital in Excess of Par, $1,300,000. Based on this information, the a. legal capital is $1,360,000. b. number of shares issued are 60,000. c. number of shares outstanding are 1,360,000. d. average price per share issued is $22.50. 2. The authorized stock of a corporation a. only reflects t ...

Other / Other 22 Mar 2016