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Exam 13: Corporations: Organization, stock Transactions, and Dividends

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Question 1

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Selected transactions completed by Breezeway Construction during the current fiscal year are as follows:​​ RequiredJournalize these transactions.

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Question 2

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Which of the following is not a right possessed by common stockholders of a corporation?

A) the right to vote in the election of the board of directors
B) the right to receive a minimum amount of dividends
C) the right to sell their stock to anyone they choose
D) the right to share in assets upon liquidation

E) A) and C)
F) All of the above

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Question 3

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Alma Corp.issues 1,000 shares of $10 par common stock at $14 per share.When the transaction is recorded,credits are made to

The issuance of common stock affects both paid-in capital and retained earnings.

The term deficit is used to refer to a debit balance in which of the following accounts of a corporation?

A company with 100,000 authorized shares of $4 par common stock issued 40,000 shares at $8.Subsequently,the company declared a 4% stock dividend on a date when the market price was $12 per share.What is the amount transferred from the retained earnings account to paid-in capital accounts as a result of the stock dividend?

Which of the following is not a reason for a corporation to buy back its own stock?

The ability of a corporation to obtain capital is

Under the cost method,when treasury stock is purchased by the corporation,the par value and the price at which the stock was originally issued are important.

On January 1,Vermont Corporation had 40,000 shares of $10 par value common stock issued and outstanding.All 40,000 shares had been issued in a prior period at $20 per share.On February 1,Vermont purchased 3,750 shares of treasury stock for $24 per share and later sold the treasury shares for $21 per share on March 1.​The journal entry to record the purchase of the treasury shares on February 1 would include a

Match each of the following stockholders' equity concepts to the appropriate term (a-h) . -A company whose shares are not bought or sold in public markets

When a stock dividend is declared,which of the following accounts is credited?

The amount of a corporation's retained earnings that has been restricted/appropriated should be reported in the notes to the financial statements.

The balance in Retained Earnings should be interpreted as representing surplus cash left over for dividends.

Retained earnings

On April 1,10,000 shares of $5 par common stock were issued at $22,and on April 7,5,000 shares of $50 par preferred stock were issued at $104.Journalize the entries for April 1 and 7.

Vincent Corporation has 100,000 shares of $100 par common stock outstanding.On June 30,Vincent Corporation declared a 5% stock dividend to be issued on July 30 to stockholders of record July 15.The market price of the stock was $132 a share on June 30.Journalize the entries required on June 30,July 15,and July 30.

The charter of a corporation provides for the issuance of 100,000 shares of common stock.Assume that 45,000 shares were originally issued and 5,000 were subsequently reacquired.What is the amount of cash dividends to be paid if a $2-per-share dividend is declared?

A corporation purchases 10,000 shares of its own $10 par common stock for $35 per share,recording it at cost.What will be the effect on total stockholders' equity?

Prepare entries to record the following selected transactions completed during the current fiscal year:​