Accounting Chapter 11 quiz – Flashcards
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Alt Corp. issues 3,000 shares of $10 par value common stock at $14 per share. When the transaction is recorded, credits are made to:
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Common Stock $30,000 and Paid-in Capital in Excess of Par Value $12,000
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The Paid-in Capital in Excess of Par Value is increased in the accounting records when
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capital stock is issued at an amount greater than par value.
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Treasury stock is
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a corporation's own stock, which has been reacquired and held for future use.
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Treasury stock should be reported in the financial statements of a corporation as a(n)
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deduction from total paid-in capital and retained earnings.
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The number of shares of issued stock equals
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outstanding shares plus treasury shares
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Which of the following is not a right or preference associated with preferred stock?
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The right to vote.
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Dividends in arrears are dividends on
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cumulative preferred stock that have not been declared for a given period of time.
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The net effects on the corporation of the declaration and payment of a cash dividend are to
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decrease assets and decrease stockholders' equity
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Sizemore, Inc. has 10,000 shares of 5%, $100 par value, cumulative preferred stock and 100,000 shares of $1 par value common stock outstanding at December 31, 2014. If the board of directors declares a $30,000 dividend, the
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preferred stockholders will receive the entire $30,000
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Watson, Inc. has 10,000 shares of 6%, $100 par value, cumulative preferred stock and 20,000 shares of $1 par value common stock outstanding at December 31, 2014. There were no dividends declared in 2012. The board of directors declares and pays a $100,000 dividend in 2013 and in 2014. What is the amount of dividends received by the common stockholders in 2014?
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$20,000
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Which of the following show the proper effect of a stock split and a stock dividend?
Item
Stock Split
Stock Dividend
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Par value per share
Decrease
No change
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The following selected amounts are available for Thomas Company.
Retained earnings (beginning)
$2,500
Net loss
200
Cash dividends declared
200
Stock dividends declared
200
What is its ending Retained Earnings balance?
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$1,900
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Nance Corporation's December 31, 2014 balance sheet showed the following:
8% preferred stock, $20 par value, cumulative,
30,000 shares authorized; 15,000 shares issued
$300,000
Common stock, $10 par value, 3,000,000 shares authorized;
1,950,000 shares issued, 1,920,000 shares outstanding
19,500,000
Paid-in capital in excess of par value - preferred stock
60,000
Paid-in capital in excess of par value - common stock
27,000,000
Retained earnings
7,650,000
Treasury stock (30,000 shares)
630,000
Nance's total paid-in capital was
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$46,860,000
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Which one of the following events would not require a journal entry on a corporation's books?
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2-for-1 stock split.
