Accounting CH 11
Last Modified: 2013-04-24
Which one of the following would not be considered an advantage of the corporate form of organization?
The two ways that a corporation can be classified by ownership are
publicly held and privately held.
Which of the following would not be true of a privately held corporation?
Its shares are regularly traded on the New York Stock Exchange
is the value assigned per share in the corporate charter
The authorized stock of a corporation
is indicated in its charter
If Norben Company issues 2,000 shares of $5 par value common stock for $140,000, the account
Paid-in Capital in Excess of Par Value will be credited for $130,000
If Lantz Company issues 3,000 shares of $5 par value common stock for $210,000, the account
Common Stock will be credited for $15,000.
Tomlinson Packaging Corporation began business in 2010 by issuing 20,000 shares of $5 par common stock for $8 per share and 5,000 shares of 6%, $10 par preferred stock for par. At year end, the common stock had a market value of $10. On its December 31, 2012 balance sheet, Tomlinson Packaging would report
Common Stock of $100,000
Kaplan Manufacturing Corporation purchased 2,000 shares of its own previously issued $10 par common stock for $46,000. As a result of this event,
B.Kaplan's total stockholders' equity decreased $46,000.
Treasury stock is
a corporation's own stock, which has been reacquired and held for future use.
Treasury shares plus outstanding shares equal
Logan Corporation issues 40,000 shares of $50 par value preferred stock for cash at $60 per share. In the stockholders' equity section, the effects of the transaction above will be reported
under both the capital stock and additional paid-in capital sections
Dividends in arrears on cumulative preferred stock
must be paid before common stockholders can receive a dividend
Outstanding stock of the West Corporation included 20,000 shares of $5 par common stock and 5,000 shares of 6%, $10 par non-cumulative preferred stock. In 2011, West declared and paid dividends of $2,000. In 2012, West declared and paid dividends of $6,000. How much of the 2012 dividend was distributed to preferred shareholders?
A corporation records a dividend-related liability
on the declaration date.
Regular dividends are declared out of
Indicate the respective effects of the declaration of a cash dividend on the following balance sheet sections:
Brewer Inc. has 3,000 shares of 8%, $50 par value, cumulative preferred stock and 100,000 shares of $1 par value common stock outstanding at December 31, 2012, and December 31, 2011. The board of directors declared and paid a $9,000 dividend in 2011. In 2012, $36,000 of dividends are declared and paid. What are the dividends received by the preferred stockholders in 2012?
Nance Corporation's December 31, 2012 balance sheet showed the following:
8% preferred stock, $20 par value, cumulative,
20,000 shares authorized; 10,000 shares issued
Common stock, $10 par value, 2,000,000 shares authorized;
1,300,000 shares issued, 1,280,000 shares outstanding
Paid-in capital in excess of par value - preferred stock
Paid-in capital in excess of par value - common stock
Treasury stock (20,000 shares)
Nance's total stockholders' equity was
Cerner Corporation began business by issuing 150,000 shares of $5 par value common stock for $24 per share. During its first year, the corporation sustained a net loss of $30,000. The year-end balance sheet would show
Common Stock of $750,000
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