FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 11: Corporate Reporting and Analysis

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 81

Multiple Choice

Review LaterAdd Note

Review Later

A corporation issued 5,000 shares of its no par common stock that was assigned a $1 stated value per share. The issue price was $10 per share. The entry to record this transaction would be:

A) Debit Cash $50,000; credit Paid-in Capital in Excess of Par Value, Common Stock $45,000; credit Common Stock $5,000.
B) Debit Cash $50,000; credit Common Stock $50,000.
C) Debit Common Stock $50,000; credit Cash $50,000.
D) Debit Treasury Stock $50,000; credit Cash $50,000.
E) Debit Common Stock $25,000; debit Paid-in Capital in Excess of Par Value, Common Stock $5,000; credit Common Stock $45,000.

F) A) and C)
G) B) and E)

Correct Answer

verified

Show Answer

Question 82

Multiple Choice

Review LaterAdd Note

Review Later

The number of shares that a corporation's charter allows it to sell is referred to as:

A) Issued stock.
B) Outstanding stock.
C) Common stock.
D) Preferred stock.
E) Authorized stock.

F) B) and E)
G) A) and C)

Correct Answer

verified

Show Answer

Question 83

Short Answer

Review LaterAdd Note

The number of shares that a corporation's charter allows it to sell is the ____________________ stock.

Stated value stock is no-par stock that is assigned a value per share by the corporation's board of directors.

A reverse stock split increases the market value per share and the par value per share of stock.

Changes in retained earnings are commonly reported in the:

_______________________ is the stockholders' equity applicable to common shares divided by the number of common shares outstanding.

When preferred stock is cumulative and the directors either do not declare a dividend to preferred stockholders or declare one that does not cover the total amount of cumulative dividends, the unpaid amount is called ____________________________.

Minimum legal capital requirements are intended to protect creditors.

The _______________________ protects stockholders' proportional interest in a corporation by allowing them to purchase their proportional share of any common stock later issued by the corporation.

Stocks that pay relatively large cash dividends on a regular basis are called:

The following data has been collected about Keller Company's stockholders' equity accounts: $\begin{array}{|l|l|}\hline \text { Common stock } \$ 10 \text { par value } 20,000 \text { shares authorized and } 10,000\\\text { shares issued, } 9,000 \text { shares outstanding }&\$100,000\\\hline \text { Paid-in capital in excess of par value, common stock } & 50,000 \\\hline \text { Retained earnings } & 25,000 \\\hline \text { Treasury stock } & 11,500 \\\hline\end{array}$ Assuming the treasury shares were all purchased at the same price, the number of shares of treasury stock is:

___________________________ are corrections of material errors in prior period financial statements.

A large stock dividend only occurs when a distribution of more than 50% of previously outstanding shares is issued.

Dividend yield is computed by dividing earnings per share by the market value per share.

Callable preferred stock gives a corporation the option of exchanging preferred shares into common shares at a specified rate.

What is treasury stock? What reasons might a company hold treasury stock?

If the purchase price of retired stock exceeds the net amount removed from paid-in capital, the excess is debited to Retained Earnings.

On July 1, a corporation issued 15,000 shares of no-par common stock with a stated value of $3 per share in exchange for a tract of land having a market value of $215,000. Prepare the general journal entry to record this transaction.

A corporation declared and issued a 15% stock dividend on October 1. The following information was available immediately prior to the dividend: $\begin{array} { | l | r | } \hline \text { Retained earnings } & \$ 750,000 \\\hline \text { Shares issued and outstanding } & 60,000 \\\hline \text { Market value per share } & \$ 15 \\\hline \text { Par value per share } & \$ 5 \\\hline\end{array}$ The amount that contributed capital will increase (decrease) as a result of recording this stock dividend is: