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Exam 12: Corporations: Organization, stock Transactions, and Dividends

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Question 91

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On March 4 of the current year,Barefoot Bay,Inc.reacquired 5,000 shares of its common stock at $89 per share.On August 7,Barefoot Bay sold 3,500 of the reacquired shares at $100 per share.The remaining 1,500 shares were sold at $88 per share on November 29. ​

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Question 92

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The declaration and issuance of a stock dividend does not affect the total amount of a corporation's assets,liabilities,or stockholders' equity.

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B) False

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Question 93

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The price at which a stock can be sold depends upon a number of factors.Which statement below is not one of those factors?

Nevada Corporation has 30,000 shares of $25 par stock outstanding that has a current market value of $120.If the corporation issues a 5-for-1 stock split,the number of shares outstanding will be

Match each of the following stockholders' equity concepts to the most appropriate term (a-h) . -The number of shares currently held by stockholders

A large retained earnings account means that there is cash available to pay dividends.

If Dakota Company issues 1,500 shares of $6 par common stock for $75,000,

Sabas Company has 20,000 shares of $100 par,2% cumulative preferred stock and 100,000 shares of $50 par common stock.The following amounts were distributed as dividends: ​ Determine the dividends per share for preferred and common stock for the second year.

When the board of directors declares a cash or stock dividend,this action decreases retained earnings.

On April 10,a company acquired land in exchange for 1,000 shares of $20 par common stock with a current market price of $73.Journalize this transaction.

Significant changes in stockholders' equity are reported in

The following account balances appear on the balance sheet of Osgood Industries: Common Stock (300,000 shares authorized,$100 par): $10,000,000 Paid-In Capital in Excess of Par-Common Stock: $2,000,000 Retained Earnings: $45,000,000 ​ The board of directors declared a 2% stock dividend when the market price of the stock was $135 a share. ​ Required:

Prepare entries to record the following:

Match each of the following stockholders' equity concepts to the most appropriate term (a-h) . -The account used to record the difference when issue price exceeds par value of stock

Preferred stockholders must receive their current-year dividends before the common stockholders can receive any dividends.

​Prepare entries to record the transactions for Maine Corp.:

A large public corporation normally uses registrars and transfer agents to maintain records of the stockholders.

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,Year 1,a company had the following transactions: ​ - Issued 10,000 shares of $2.00 par common stock for $12.00 per share. - Issued 3,000 shares of $50 par,6% cumulative preferred stock for $70 per share. - Purchased 1,000 shares of previously issued common stock for $15.00 per share. - No other shares of stock were issued or outstanding. ​ The company had the following dividend information available: ​ Year 1 - No dividend paid Year 2 - Paid a $2,000 total dividend Year 3 - Paid a $20,000 total dividend Year 4 - Paid a $25,000 total dividend ​ Using the following format,fill in the correct values for each year: ​ ​

Before a stock dividend can be declared or paid,there must be sufficient cash.