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Study Resources (Accounting)

48) At March 31, 2014, the Park Place Company shows the following data on their balance sheet: Stockholders' equity   Common stock, $1 par, 1,000,000 shares authorized, $120,000        120,000 shares issued, 110,000 shares outstanding   Paid-in capital in excess of par 2,470,000   Retained earnings 5,440,000   Treasury stock, 10,000 shares at $25 (250,000)       Total.
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15) Which of the following occurs when a dividend is declared? A) Liabilities increase. B) Equity increases. C) Liabilities decrease. D) Assets increase. 16) Which of the following is TRUE of dividends in arrears? A) Dividends in arrears are a liability on the balance sheet. B) Dividends in arrears are passed dividends on noncumulative preferred stock. C) Dividends.
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23) Hot Tamale Company had $120,000 of Revenues and $125,000 of Expenses. No dividends were paid.  Please provide the first of the year-end closing entries. 24) Hot Tamale Company had $120,000 of Revenues and $125,000 of Expenses. No dividends were paid.  Please provide the second of the year-end closing entries. 25) Hot.
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21) Landess Corporation currently has 120,000 shares outstanding of $1 par value common stock.  The stock was originally issued for $12 per share.  On March 15, the board of directors declares a 10% stock dividend when the stock is selling for $16 per share.  Which of the following is the.
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41) Please refer to the following information for Peartree Company: •Common stock, $1.00 par, 100,000 issued, 95,000 outstanding •Paid-in capital in excess of par: $2,150,000 •Retained earnings:  $910,000 •Treasury stock: 5,000 shares purchased at $20 per share If Peartree resold 800 shares of treasury stock for $15 per share, which of the following statements would.
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Learning Objective 12-1 1) The formation of a corporation is generally less complicated than the formation of a partnership. 2) A corporation is a separate legal entity formed under the laws of a particular state. 3) Stockholders of a corporation have unlimited liability for the corporation's debt. 4) A disadvantage of the corporation is.
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6) Retained earnings is equity that is generated internally by corporate business transactions. 7) All corporations must issue both common and preferred shares of stock. 8) Which of the following represents one of the basic rights of stockholders? A) Stockholders may sell their stock back to the company if they wish. B) Stockholders may.
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11) Which of the following will happen to a stockholder's percentage ownership in the stock of a corporation when the corporation declares a stock dividend? A) The stockholder's percentage ownership decreases. B) The stockholder's percentage ownership can increase or decrease. C) The stockholder's percentage ownership increases. D) The stockholder's percentage ownership stays the same. 12).
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Learning Objective 14-1 1) Cash equivalents are assets that can be converted to cash within one year. 2) The statement of cash flows explains the difference between net income and the change in cash balance. 3) Investors and management use the statement of cash flows to evaluate a firm's profitability. 4) For purposes of.
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5) Which of the following shows the relationship between net income available to common shareholders and average common equity? A) Net income B) The rate of return on total assets C) Inventory turnover D) The rate of return on common stockholders' equity 6) The rate of return on total assets and the rate of return.
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Learning Objective 14-2 1) Operating activities include activities that affect long-term liabilities and stockholders' equity. 2) The financing activities section of the statement of cash flows includes paying dividends and paying off loans. 3) Investing activities include activities that affect the long-term asset section of the balance sheet. 4) Financing activities include activities that.
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21) Ross Corporation reported the following equity section on its current balance sheet: Common stock, $5 par, 140,000 shares authorized, 50,000 shares issued $250,000 Paid in capital in excess of par—common 200,000 Retained earnings 207,000 Total stockholders' equity $657,000 The corporation purchases 15,000 shares of its common stock at $9.50 per share.  Which of the following is the number.
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11) Please refer to the following information for Peartree Company: •Common stock, $1.00 par, 100,000 issued, 95,000 outstanding •Paid-in capital in excess of par: $2,150,000 •Retained earnings:  $910,000 •Treasury stock: 5,000 shares purchased at $20 per share If Peartree resold 1,000 shares of treasury stock for $24 per share, the company would record a gain.
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16) Which of the following describes preferred stock? A) Stock that sells for a very high price B) Stock that is sold to employees of the company as a performance incentive C) Stock that is purchased by the corporation for investment purposes D) Stock which gives shareholders certain preferences and advantages over common stock 17).
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31) Landess Corporation currently has 120,000 shares outstanding of $1 par value common stock.  The stock was originally issued for $12 per share.  On March 15, the board of directors declares a 10% stock dividend when the stock is selling for $16 per share.  Prepare the journal entry to record.
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33) At January 1, 2013, Foxmore Company had 80,000 shares of common stock outstanding and no preferred stock.  During the year, they issued 40,000 additional shares of common stock.  At December 31, 2013, Foxmore had 120,000 shares of common stock outstanding, and no preferred stock.  In addition, Foxmore reported the.
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50) At March 31, 2014, the Park Place Company shows the following data on their balance sheet: Stockholders' equity   Common stock, $1 par, 1,000,000 shares authorized, $120,000        120,000 shares issued, 110,000 shares outstanding   Paid-in capital in excess of par 2,470,000   Retained earnings 5,440,000   Treasury stock, 10,000 shares at $25 (250,000)       Total.
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6) Which of the following statements is TRUE? A) Restrictions on retained earnings require adjusting journal entries. B) Restrictions on retained earnings are usually reported in the notes to the financial statements. C) Restrictions on retained earnings are disclosed on the income statement. D) Restrictions on retained earnings are designed to maximize dividends paid.
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3) If the difference between the effective-interest method of amortizing bond discount and the straight-line method is immaterial, then GAAP permits use of the straight-line method. 4) The time value of money is related to which of the following concepts? A) Money loses value over time as it is spent. B) Money earns.
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6) Which of the following describes the correct sequence of year-end closing entries? A) Close Revenues to Income summary; close Expenses to Income summary; close Income summary to Retained earnings. B) Close Expenses to Income summary; close Revenues to Income summary; close Income summary to Retained earnings. C) Close Revenues to Income summary;.
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16) Gordon Corporation reported the following equity section on its current balance sheet.  The common stock is currently selling for $11.50 per share. Common stock, $5 par, 100,000 shares authorized, 40,000 shares issued $200,000 Paid in capital in excess of par—common 120,000 Retained earnings 290,000 Total stockholders' equity $610,000 What will the total number of shares issued be after.
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6) Please refer to the equity section of the balance sheet, below:   Common stock, $0.01 par $500       1,000,000 shares authorized, 50,000 shares outstanding Paid-in capital in excess of par 399,500 Retained earnings 150,000      Total stockholders' equity $550,000 Please calculate the book value per share of common stock. A) $3.00 per share B) $8.00 per share C) $11.00.
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25) Occidental Produce Company has 40,000 shares of common stock outstanding and 2,000 shares of preferred stock outstanding.  The common stock is $0.01 par value; the preferred stock is 4% non-cumulative, with $100 par value.  On October 15, 2014, the company declares a total dividend payment of $40,000.  What is.
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38) Moretown Company had the following transactions in 2013, its first year of operations. •Issued 30,000 shares of common stock.  Stock has par value of $1.00 per share and was issued at $18.00 per share. •Earned net income of $70,000. •Paid no dividends. The company charter authorizes 1,000,000 shares of common stock and 100,000.
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16) Please refer to the equity section of the balance sheet shown below: Preferred stock $100 par, 10,000 shares authorized, 1,000 shares issued $100,000 Common stock $1 par, 500,000 shares authorized, 20,000 shares issued 20,000 Paid-in capital in excess of par 350,000 Retained earnings (74,000) Total stockholders' equity $396,000 The amount shown for Retained earnings would be called a(n): A).
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5) Comprehensive income is the company's change in total stockholders' equity from all sources other than its owners, and sometimes includes items not found on the income statement. 6) Certain types of transactions, other than dividend payments, that are NOT included in the income statement, but have an effect on retained.
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31) Please refer to the following information for Peartree Company: •Common stock, $1.00 par, 100,000 issued, 95,000 outstanding •Paid-in capital in excess of par: $2,150,000 •Retained earnings:  $910,000 •Treasury stock: 5,000 shares purchased at $20 per share If Peartree purchases an additional 1,000 shares of treasury stock at $18 per share, what amounts will be.
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Learning Objective 13-1 1) Stock dividends have no effect on assets or liabilities. 2) Cash dividends affect only stockholders' equity accounts. 3) Stock dividends are distributed to stockholders in proportion to the number of shares each stockholder already owns. 4) The declaration of a stock dividend creates a liability for the corporation. 5) On June.
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33) Chaney Corporation issued 20,000 shares of common stock on January 1, 2014.  The stock has par value of $1.00 per share and was sold at $30 per share.  Please provide the journal entry for this transaction. 34) Dallkin Corporation issued 5,000 shares of common stock on January 1, 2015.  The.
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Learning Objective 13-3 1) Treasury stock is a corporation's own stock that it has issued and later reacquired. 2) The purchase of treasury stock requires a credit to the Common stock account. 3) A corporation must record a gain on sale for the sale of treasury stock at an amount greater than its.
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40) Overton Company had the following transactions in 2013, its first year of operations. •Issued 5,000 shares of common stock.  Stock has par value of $0.01 per share and was issued at $30.00 per share. •Earned net income of $200,000. •Paid dividends of $5.00 per share. The company charter authorizes 1,000,000 shares of common.
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15) For the year 2013, Foxmore Company reports the following items as part of their financial results: Sales revenues from regular business operations $3,000,000 Cost of goods sold   900,000 Operating expenses from their regular business operations     600,000 Gain on disposal of several items of property, plant & equipment                15,000 Income tax expense on continuing operations    .
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Learning Objective 11-4 1) Interest payable would normally be shown on the balance sheet in current liabilities. 2) FICA tax payable would normally be shown on the balance sheet in long-term liabilities. 3) Accounts payable is always shown on the balance sheet in current liabilities. 4) The current portion of notes payable would.
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35) On July 31, 2013, the Archer Company reported the following information in the equity section of their balance sheet: Stockholders' equity   Common stock, $1.00 par, 500,000 shares authorized, 20,000 shares issued $20,000   Paid-in capital in excess of par 1,180,000   Retained earnings 3,200,000       Total stockholder's equity $4,400,000 Assume that Archer carries out.
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Learning Objective 14-3 1) Issuing preferred stock to stockholders would be a financing activity. 2) Buying property, plant and equipment would be considered a cash outflow from financing. 3) The financing section of the statement of cash flows reflects transactions in the equity accounts only. 4) The financing section of the statement of cash.
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11) Which of the following corporate characteristics is a disadvantage of the corporate form of business? A) Limited liability B) Double taxation C) No mutual agency D) Transferability of ownership 12) Which of the following is a disadvantage of the corporate form of business? A) Separation of ownership and management B) Continuous life C) The potential to raise.
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25) Moretown Company had the following transactions in 2014, its first year of operations. •Issued 30,000 shares of common stock.  Stock has par value of $1.00 per share and was issued at $18.00 per share. •Earned net income of $70,000. •Paid no dividends. At the end of 2014, what is the total amount of.
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