ACCT 2323 Study Guide - Final Guide: Preferred Stock, Issued Shares, Authorised Capital

176 views3 pages

redelk826

18 Jun 2018

School

Department

Course

Professor

For unlimited access to Study Guides, a Grade+ subscription is required.

Quiz 18, 19, 20

Attempt 1

1. Characteristics of a corporation include: stockholders having limited

liability and no mutual agency.

2. An advantage of a corporation would be: C.) Limited liability for the

shareholders

3. The maximum number of shares of capital stock that a corporation can sell is

known as: B.) Authorized capital stock

4. A share of stock may be sold at any given time according to the stocks: D.)

Market value

5. Shares of outstanding stock always equal the number of shares of authorized

stock. B.) False

6. The entry to record selling 800 shares of no-par common stock with a stated

value of $30 for $44 would be to: B.) Debit cash for $35,200; Credit

Common Stock for $24,000; credit Paid-in Capital in Excess of Stated

Value- Common for $11,200 (Cash: 800 shares x $44; CS: 800 shares x 30;

PC: 35,200-24,000)

7. ABC sells 430 shares of its $16 par common stock for $28 per share. The

entry would entail a credit(s) of: D.) Paid –in Capital in Excess of Par Value

–Common for $5,160; Common Stock for $6,880 (Cash: 430 x $28; CS: 430

x $16; PC: 12,080-6,880)

8. Rhubarb Corporation's outstanding stock is 180 shares of $108, 11%

cumulative nonparticipating preferred stock and 2,400 shares of $20 par

value common stock. Rhubarb paid $4,200 cash dividends during the year.

Common stockholders received: D.) $2,062

9. The Bean Counter Co. received subscriptions for 100 shares of its $12 par

value common stock at $15 per share. The entry to record receipt of the

subscriptions would include a: C.) Debit to Subscriptions Receivable—

Common Stock $1,500; a credit to Common Stock Subscribed $1,200; and

a credit to Paid-in Capital in Excess of Par Value—Common for $300 (SR:

100 x $15; CSS: 100 x $12; PC: 1500-1200)

10. What is the entry to record subscriptions received for 1,700 shares of $100

par value common stock at $130 per share? A.) Debit Subscriptions

Receivable—Common Stock $221,000; credit Common Stock Subscribed

$170,000; credit Paid-in Capital in Excess of Par Value—Common

$51,000 (SC: 1700 x $130; CSS: 1700 x $100; PC: 221,000-170,000)

11. What are the annual dividends on preferred stock, $25 par 2,000 shares

authorized, 600 shares issued, and a dividend rate of 3%? A.) $450 (600

shares issued x $25 x 3%)

12. A stock-split journal entry would include a: B.) Memorandum notation only

13. Declaration of a cash dividend was recorded by debiting Operations Expense

and crediting Cash. This error would cause: B.) The period end net income

to be understated.

find more resources at oneclass.com

Unlock document

This preview shows page 1 of the document.
Unlock all 3 pages and 3 million more documents.

Already have an account? Log in

Document Summary

Authorized capital stock: a share of stock may be sold at any given time according to the stocks: d. ) Market value: shares of outstanding stock always equal the number of shares of authorized stock. False: the entry to record selling 800 shares of no-par common stock with a stated value of for would be to: b. ) Common stock for ,000; credit paid-in capital in excess of stated. Value- common for ,200 (cash: 800 shares x ; cs: 800 shares x 30; Pc: 35,200-24,000: abc sells 430 shares of its par common stock for per share. The entry would entail a credit(s) of: d. ) paid in capital in excess of par value. Rhubarb paid ,200 cash dividends during the year. Common stockholders received: d. ) ,062: the bean counter co. received subscriptions for 100 shares of its par value common stock at per share.

Related Questions

Need answers for the following below, please :)

Prepare journal entries to recordthe following four separate issuances of stock.

1.	A corporation issued 3,000 shares of $20 par value common stockfor $72,000 cash.
2.	A corporation issued 1,500 shares of no-par common stock to itspromoters in exchange for their efforts, estimated to be worth$42,500. The stock has a $3 per share stated value.
3.	A corporation issued 1,500 shares of no-par common stock to itspromoters in exchange for their efforts, estimated to be worth$42,500. The stock has no stated value.
4.	A corporation issued 750 shares of $75 par value preferred stockfor $98,750 cash.

blackbuffalo633

Jude Corporation has been authorized to issue 20,000 shares of$100 par value, 10%, noncumulative preferred stock and 1,000,000shares of no-par common stock. The corporation assigned a $2.50stated value to the common stock. At December 31, 2014, the ledgercontained the following balances pertaining to stockholder'sequity.

Perferred Stock $120,000

Pain-in Capital in Excess of Par- Preferred Stock 12,000

Common Stock 1,000,000

Paid-in Capital in Excess of Stated Value- Common Stock1,600,000

Treasury Stock (1,000 common shares) 9,000

Paid-in Capital from Treasury Stock 1,000

Retained Earnings 82,000

The preferred stock was issued for land having a fair value of$132,000. All common stock issued was for cash. In November, 1,500shares of common stock were purchased for the treasury at a pershare of $9. In December, 500 shares of treasury stock were soldfor $11 per share. No dividends were declared in 2014.

Prepare the stockholder's equity section at December 31,2014

rosecheetah455

1. A company purchases 1,000 shares of its $10 par value common stock when the market price per share is $25. The entry to record the treasury stock purchase is:

a. Debit Treasury Stock, Common, $25,000; credit Cash $25,000.

b. Debit Treasury Stock, Common, $10,000; debit Additional Paid-in Capital, Common, $15,000; credit Cash $25,000.

c. Debit Common Stock, $10,000; debit Additional Paid-in Capital, Common, $15,000; credit Cash $25,000.

d. Debit Cash $25,000; credit Treasury Stock, Common, $25,000.

2. Tri-City Corporation reports on its balance sheet 1,000 shares of $100 par value, 5%, cumulative, preferred stock; 6,000 shares issued, 5,000 outstanding, of $10 par value common stock; Additional Paid-in Capital, Common of $40,000; 1,000 shares of Treasury Stock, Common at $10,000; and Retained Earnings of $80,000. The preferred shares are callable at $110, and no dividends are in arrears.

The book value per share of Tri-City's common stock is

3.Johanna Corporation issues 1,000 shares of $20 par value stock for $50,000. The entry to record the stock issue is:

a. Debit Cash, $50,000; Credit Common Stock $50,000.

b. Debit Common Stock, $20,000; debit Additional Paid-in Capital, Common, $30,000; credit Cash, $50,000.

c. Debit Cash, $50,000; credit Common Stock, $20,000; credit Additional Paid-in Capital, Common, $30,000.

d. Debit Common Stock, $50,000; credit Cash, $50,000.