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Study Resources (Accounting)

175.Wonder Sales is authorized to issue 100,000 shares of $100 par, 2% preferred stock and 1,000,000 shares of $10 par common stock. (a) On January 2nd, Wonder Sales issues 5,000 shares of preferred stock for $107 per share and 65,000 shares of common stock at $10 per share. Journalize this issuance. .
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101.When a stock dividend is declared, which of the following accounts is credited? A.Common Sock B.Dividend Payable C.Stock Dividends Distributable D.Retained Earnings 102.Treasury stock shares are A.shares held by the U.S. Treasury Department B.part of the total outstanding shares but not part of the total issued shares of a corporation C.unissued shares that are held by the.
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91.When Bayou Corporation was formed on January 1, 20xx, the corporate charter provided for 100,000 share of $10 par value common stock. The following transaction was among those engaged in by the corporation during its first month of operation: The corporation issued 9,000 shares of stock at a price of.
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89.Robert Johnson contributed equipment, inventory, and $42,000 cash to the partnership. The equipment had a book value of $25,000 and market value of $28,000. The inventory has a book value of $50,000, but only had a market value of $15,000 due to obsolescence. The partnership also assumed a $12,000 note.
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1.Twenty percent of all businesses in the United States are corporations and they account for 80% of the total business dollars generated. 2.A corporation is a separate entity for accounting purposes but not for legal purposes. 3.The financial loss that each stockholder in a corporation can incur is usually limited to the.
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168.A company had the following stockholders equity information available at year end. - issued 11,000 shares of $2.00 par value common stock for $12.00 per share - issued 5,000 shares of $50 par value 6% preferred stock for $70 per share - purchased 1,000 shares of previously issued common stock for $15.00 per.
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149.The capital accounts of Hawk and Martin have balances of $160,000 and $140,000, respectively, on January 1, 2010, the beginning of the current fiscal year. On April 10, Hawk invested an additional $10,000. During the year, Hawk and Martin withdrew $86,000 and $68,000, respectively, and net income for the year.
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155.Aaron and Kim form a partnership by combining the assets of their separate businesses. Aaron contributes accounts receivable with a face amount of $50,000 and equipment with a cost of $180,000 and accumulated depreciation of $100,000. The partners agree that the equipment is to be priced at $68,000, that $3,500.
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99.Tomas and Saturn are partners who share income in the ratio of 3:1. Their capital balances are $40,000 and $60,000 respectively. Income Summary has a credit balance of $20,000. What is Tomas’s capital balance after closing Income Summary to Capital? A.$45,000 B.$55,000 C.$65,000 D.$75,000 100.Tomas and Saturn are partners who share income in the ratio.
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41.The day on which the board of directors of the corporation distributes a dividend is called the declaration date. 42.The stock dividends distributable account is listed in the current liability section of the balance sheet. 43.A prior period adjustment should be reported as an adjustment to the retained earnings balance at the.
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172.Prior to liquidating their partnership, Porter and Robert had capital accounts of $160,000 and $100,000 respectively. Prior to liquidation, the partnership had no cash assets other than what was realized from the sale of the partnership assets. These partnership assets were sold for $250,000. The partnership had $10,000 of liabilities..
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71.The term deficit is used to refer to a debit balance in which of the following accounts of a corporation? A.Retained Earnings B.Treasury Stock C.Organizational Expenses D.Common Stock 72.Stockholders' equity A.is usually equal to cash on hand B.includes paid-in capital and liabilities C.includes retained earnings and paid-in capital D.is shown on the income statement 73.The state charter allows a.
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51.Treasury Stock is listed in the stockholders' equity section onthe balance sheet. 52.The cost of treasury stock is deducted from total paid-in capital and retained earnings in determining total stockholders’ equity. 53.The retained earnings statement may be combined with the income statement. 54.If paid-in-capital in excess of par/preferred stock is $30,000, preferred stock.
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138.Match the following stockholder’s equity concepts to the best answer. 1.account used when shares are issued for an amount greater than par value common stock distributable 2.entitled to receive dividends first treasury stock 3.this event creates a liability to company preferred stock 4.when dividends are actually distributed to stockholders cash dividend 5.equity account reflecting shares “owed” to stockholders additional paid.
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158.Future Sources, Inc. reported the following results for the year ending July 31, 2012: Retained earnings, August 1, 2011 $875,000 Net income 260,000 Cash dividends declared 120,000 Stock dividends declared 100,000 Prepare a retained earnings statement for the fiscal year ended July 31, 2012. 159.Using the following information, prepare the Stockholders’ Equity section of the balance sheet. Seventy thousand shares.
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191.Watson purchased one-half of Dalton’s interest in the Patton and Dalton partnership for $40,000. Prior to the investment, land was revalued to a market value of $135,000 from a book value of $100,000. Patton and Dalton share net income equally. Dalton had a capital balance of $30,000 prior to these.
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189.After discontinuing the ordinary business operations and closing the accounts on May 7, the ledger of the partnership of Anna, Brian, and Cole indicated the following: Cash $7,500 Noncash Assets 105,000 Liabilities $27,500 Anna, Capital 45,000 Brian, Capital 15,000 Cole, Capital 25,000 $112,500 $112,500 The partners share net income and losses in the ratio of 3:2:1. Between May 7-30, the noncash assets were sold for.
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187.Kala and Leah, partners in Best Designs, have capital balances of $40,000 and $60,000 respectively. Adam joins the partnership by buying one-half of Kala’s interest for $30,000. In addition, because of Adam’s outstanding sales skills, the partners agree to increase his interest to 40% if he invests another $10,000. The.
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119.Immediately prior to the admission of Abbott, the Smith-Jones Partnership assets had been adjusted to current market prices, and the capital balances of Smith and Jones were $40,000 and $60,000 respectively. If the parties agree that the business is worth $120,000, what is the amount of bonus that should be.
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166.After the tangible assets have been adjusted to current market prices, the capital accounts of Harper and Kahlil have balances of $60,000 and $90,000, respectively. Fay is to be admitted to the partnership, contributing $45,000 cash, for which she is to receive an ownership equity of $60,000. All partners share.
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170.A corporation was organized on January 1 of the current year, with an authorization of 20,000 shares of $4 preferred stock, $12 par, and 100,000 shares of $3 par common stock. The following selected transactions were completed during the first year of operations: Jan. 3 Issued 15,000 shares of common stock at $23.
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111.In which section of the financial statements would Paid-In Capital from Sale of Treasury Stock be reported? A.other expense on income statement B.intangible asset on balance sheet C.stockholders' equity on balance sheet D.other income on income statement 112.Which of the following is not classified as paid-in capital on the balance sheet? A.common stock B.common stock distributable C.donated capital D.treasury.
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158.Emerson and Dakota formed a partnership dividing income as follows: 1. Annual salary allowance to Emerson of $48,000 2. Interest of 8% on each partner’s capital balance on January 1 3. Any remaining net income divided equally. Emerson and Dakota had $25,000 and $140,000 respectively in their January 1 capital balances. Net income for.
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109.A partner withdraws from a partnership by selling her interest to another person who currently is not associated with the firm. As a results of this transaction, the capital account balance of the other partners in the partnership A.will increase B.will decrease C.will remain the same D.may increase, decrease, or remain the same 110.Samuel.
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155.Morocco Inc. reported the following results for the year ending April 30, 2012: Retained earnings, May 1, 2011 $2,870,000 Net income 530,000 Cash dividends declared 80,000 Stock dividends declared 220,000 Prepare a retained earnings statement for the fiscal year ended April 30, 2012. 156.Indicate whether the following actions would (+) increase, (-) decrease, or (0) not affect a company's total.
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173.Prepare entries to record the following: (a) Issued 1,000 shares of $10 par common stock at $56 for cash. (b) Issued 1,400 shares of common stock in exchange for equipment with a fair market price of $21,000. (c) Purchased 100 shares of treasury stock at $25. (d) Sold 100 shares of treasury stock at $30. 174.Prepare entries to.
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184.Jackson and Campbell have capital balances of $100,000 and $300,000 respectively. Jackson devotes full time and Campbell one-half time to the business. Determine the division of $150,000 of net income under each of the following assumptions: (a) No agreement as to division of net income. (b) In ratio of capital balances. (c) In ratio of.
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161.Malcolm has a capital balance of $90,000 after adjusting to fair market value. Celeste contributes $45,000 to receive a 25% interest in a new partnership with Malcolm. Determine the amount and recipient of the partner bonus. 162.Prior to liquidating their partnership, Craig and Jenny had capital accounts of $60,000 and $100,000, respectively..
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31.A large retained earnings account means that there is cash available to pay dividends. 32.When the board of director's declares a cash or stock dividend, this action decreases retained earnings. 33.If 20,000 shares are authorized, 15,000 shares are issued, and 500 shares are held as treasury stock, a cash dividend of $1.
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21.If the dividend amount of preferred stock, $50 par value, is quoted as 8%, then the dividends per share would be $4. 22.If 50,000 shares are authorized, 41,000 shares are issued, and 2,000 shares are reacquired, the number of outstanding shares is 43,000. 23.Preferred stockholders must receive their current year dividends before.
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11.The balance in Retained Earnings at the end of the period is created by closing entries. 12.The balance in Retained Earnings should be interpreted as representing surplus cash left over for dividends. 13.A deficit in Retained Earnings is reported in the stockholders' equity section of the balance sheet. 14.When no-par common stock with.
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178.Match the term with the appropriate definition. 1.The process of going out of business by selling the entity’s assets and paying its liabilities unlimited liability 2.When a partnership cannot pay its debts with business assets, the partners must use personal assets to meet the debt articles of partnership 3.Without an agreement, the law will stipulate.
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140.A company had stock outstanding as follows during each of its first three years of operations: 2,500 shares of $10, $100 par, cumulative preferred stock and 50,000 shares of $10 par common stock. The amounts distributed as dividends are presented below. Determine the total and per share dividends for each.
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164.Hamir, Darci, and Pete are partners sharing income 3:2:1, respectively. After the firm’s loss from liquidation is distributed, the capital account balances were: Hamir, $36,000 Dr.; Darci, $90,000 Cr., and Pete, $64,000 Cr. If Hamir is personally bankrupt and unable to pay any of the $36,000, what will be the.
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181.Sharp and Townson had capital balances of $60,000 and $90,000 respectively at the beginning of the current fiscal year. The articles of partnership provide for salary allowances of $25,000 and $30,000 respectively, an allowance of interest at 12% on the capital balances at the beginning of the year, with the.
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81.The entry to record the issuance of common stock at a price above par includes a debit to A.Organizational Expenses B.Common Stock C.Cash D.Paid-In Capital in Excess of Par-Common Stock 82.Merritt Company acquired a building valued at $190,000 for property tax purposes in exchange for 12,000 shares of its $5 par common stock. The.
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121.Treasury stock should be reported in the financial statements of a corporation as a(n) A.investment. B.liability. C.current asset. D.deduction from stockholders’s equity. 122.The reduction of par or stated value of stock by issuance of a proportionate number of additional shares is termed a A.liquidating dividend B.stock split C.stock option D.preferred dividend 123.A corporation has 40,000 shares of $25 par.
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177.A company has 10,000 shares of $10 par common stock outstanding. Prepare entries to record the following: (a) Purchased 1,000 shares of treasury stock at $12. The treasury stock is accounted for by the cost method. (b) Sold 500 shares of treasury stock at $15. (c) Purchased equipment for $75,000, paying $25,000 in cash and.
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136.Match the following stockholders equity concepts to the appropriate answer. 1.formally creates a corporation corporation 2.creditors cannot pursue stockholder’s personal assets to satisfy claims publicly held corporation 3.a legal entity, separate from the people who create and operate it bylaws 4.rules and procedures for corporate conduct of its affairs privately held corporation 5.responsible for establishing corporate policies articles of incorporation 6.a.
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61.Which of the following is not characteristic of a corporation? A.The financial loss that a stockholder may suffer from owning stock in a public company is limited. B.Cash dividends paid by a corporation are deductible as expenses by the corporation. C.A corporation can own property in its name. D.Corporations are required to file federal.
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168.The capital accounts of Hope and Indiana have balances of $115,000 and $95,000, respectively. Clint and Casey are to be admitted to the partnership. Clint buys one-fifth of Hope’s interest for $30,000 and one-fourth of Indiana’s interest for $20,000. Casey contributes $45,000 cash to the partnership, for which he is.
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146.Sabas Company has 20,000 shares of $100 par, 1% cumulative preferred stock and 100,000 shares of $50 par common stock. The following amounts were distributed as dividends: Year 1: $10,000 Year 2: 15,000 Year 3: 90,000 Determine the dividends per share for preferred and common stock for each year. 147.Sabas Company has 40,000 shares of $100 par, 1%.
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163.Selected transactions completed by Breezeway Construction during the current fiscal year are as follows: February 3 Split the common stock 2 for 1 and reduced the par from $40 to $20 per share. After the split there were 250,000 common shares outstanding. April 10 Declared semiannual dividends of $1.50 on 18,000 shares of preferred.
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