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Exam 11: Corporations: Organization, Stock Transactions

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Question 21

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A corporation's own stock that has been reacquired by the corporation but not canceled is called ___________________ and is deducted from total _______________________ on the balance sheet.

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treasury s...

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Question 22

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New Corp. issues 2,000 shares of $10 par value common stock at $16 per share. When the transaction is recorded, credits are made to

A) Common Stock $20,000 and Paid-in Capital in Excess of Stated Value $12,000.
B) Common Stock $32,000.
C) Common Stock $20,000 and Paid-in Capital in Excess of Par $12,000.
D) Common Stock $20,000 and Retained Earnings $12,000.

E) None of the above
F) A) and B)

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Question 23

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Ramos Corporation sold 400 shares of treasury stock for $45 per share. The cost for the shares was $35. The entry to record the sale will include a

Place each of the items listed below in the appropriate subdivision of the stockholders' equity section of a balance sheet. Common stock, $10 stated value Retained earnings 8% Preferred stock, $100 par value Paid-in capital in excess of par Paid-in capital in excess of stated value Treasury stock-Common Paid-in capital from treasury stock

A statement of comprehensive income is presented in

Preferred stockholders have a priority over common stockholders as to

Stockton Corporation has 160,000 shares of $5 par value common stock outstanding. It declared a 15% stock dividend on June 1 when the market price per share was $13. The shares were issued on June 30. Instructions Prepare the necessary entries for the declaration and distribution of the stock dividend.

A separate paid-in capital account is used to record each of the following except the issuance of

Restricting retained earnings for the cost of treasury stock purchased is a

S. Lamar performed legal services for E. Garr. Due to a cash shortage, an agreement was reached whereby E. Garr. would pay S. Lamar a legal fee of approximately $12,000 by issuing 3,000 shares of its common stock (par $1). The stock trades on a daily basis and the market price of the stock on the day the debt was settled is $4.50 per share. Given this information, the journal entry for E. Garr. to record this transaction is:

Wise Company had the following transactions. 1. Issued 7,000 shares of common stock with a stated value of $10 for $130,000. 2. Issued 2,000 shares of $100 par preferred stock at $108 for cash. Instructions Prepare the journal entries to record the above stock transactions.

A company would not acquire treasury stock

Realistic Corporation's December 31, 2018 balance sheet showed the following: 8% preferred stock, $20 par value, cumulative, 20,000 shares Realistic's total paid-in capital was

Additional paid-in capital includes all of the following except the amounts paid in

If stock is issued in exchange for noncash assets, the assets should be valued at the ____________________ of the consideration ___________________ or the assets ____________________, whichever is more clearly evident.

The return on common stockholders' equity is computed by dividing _____________ minus _______________ dividends by average common stockholders' equity.

As soon as a corporation is authorized to issue stock, an accounting journal entry should be made recording the total value of the shares authorized.

Yates Corporation has the following stockholders' equity accounts on January 1, 2018: The company uses the cost method to account for treasury stock transactions. During 2018, the following treasury stock transactions occurred: April 1 Purchased 10,000 shares at $19 per share. August 1 Sold 4,000 shares at $22 per share. October 1 Sold 2,000 shares at $15 per share. Instructions (a) Journalize the treasury stock transactions for 2018. (b) Prepare the Stockholders' Equity section of the balance sheet for Yates Corporation at December 31, 2018. Assume net income was $110,000 for 2018.

Common Stock Dividends Distributable is shown within the Paid-in Capital subdivision of the stockholders' equity section of the balance sheet.

Under IFRS, equity is described as each of the following except