Match the items below by entering the appropriate answer letter choice from the column provided on the right.
1.Net income retained in the corporation.
2. Creditors cannot go after stockholderâs personal assets to satisfy their claims.
3. Retained earnings currently unavailable for dividends.
4. A corporationâs own stock that has been reacquired by the corporation.
5. Responsible to stockholders for corporate activity.
6. The amount assigned to each share of stock in the corporate charter.
. 7. The date the board of directors formally declares the dividend and announces it to stockholders.
8. A debit balance in retained earnings.
9. Capital contributed by stockholders.
10. The death of a stockholder or employee does not affect the going concern of the corporation.
11. The company determines ownership of the outstanding shares for dividend purposes.
12. Unit of ownership in a corporation.
- 13. This type of dividend for the stockholder results in more shares of stock, but no change in ownership interest.
14. The issuance of additional shares of stock to stockholders accompanied by a reduction in the par or stated value per share. This stock transaction does not require an accounting entry.
15. The acts of the owners (stockholders) do not bind the corporation.
A. Par value
B. Record date
C. Retained Earnings
D. Indefinite life
E. Treasury stock
F. Stock split
G. Declaration date
H. Retained Earnings restrictions
I. Stock dividend
J. Capital stock
K. Deficit
L. Paid-in capital
M. Cash dividend
N. Board of directors
O. Separate legal entity
P. Limited liability
Match the items below by entering the appropriate answer letter choice from the column provided on the right.
|
|
Related questions
Match the items below by selecting the appropriate number in thespace provided.
| Net income retained in the corporation. | |
| The amount that must be retained in the business for theprotection of creditors. | |
| Preferred stockholders have a right to receive current andunpaid prior-year dividends before common stockholders receive anydividends. | |
| Creditors only have corporate assets to satisfy theirclaims. | |
| Responsible to stockholders for corporate activity. | |
| The amount assigned to each share of stock in the corporatecharter. | |
| Unit of ownership in a corporation. | |
| Enables stockholders to maintain their same percentageownership when new shares are issued. | |
| Corporation's own stock that has been reacquired by thecorporation but not retired. | |
| Total amount paid-in on capital stock. |
| 1. | Limited liability |
| 2. | Capital stock |
| 3. | Board of directors |
| 4. | Paid-in capital |
| 5. | Retained earnings |
| 6. | Preemptive right |
| 7. | Par value |
| 8. | Legal capital |
| 9. | Treasury stock |
| 10. | Cumulative feature |
The Capital Corporation had stockholders equity on January 1,2000 as follows:
Common Stock, $5 par value, 1,000,000 shares authorized, 525,000shares issued and outstanding | $2,625,000 |
Paid-in Capital/Contributed Capital in excess of par value | $1,025,000 |
Retained Earnings | $2,850.000 |
Please prepare journal entries for the followingtransactions.
(1)
May 1
A cash dividend of $1.10 per share was declared by the Board ofDirectors to stockholders of record on May 20th, payableon June 1st.
(2)
June 1
Paid the cash dividend.
(3)
July 1
Board of Directors declared a 10% stock dividend with a market valeof $23 per share to the stockholders of record on July15th, distributed on August 1st.
