Accounting Expert Answers & Study Resources : Page 677

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.

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.

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.

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.

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.

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.

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.

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..

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.

153.On June 5, Belen Corporation reacquired 3,300 shares of it common stock at $45 per share. On July 15, Belen sold 2,000 of the reacquired shares at $48 per share. On August 30, Belen sold the remaining shares at $42 per share. Journalize the transactions of June 5, July 15, and.

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.

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.

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.

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.

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.

149.On May 1, 10,000 shares of $10 par common stock were issued at $30, and on May 7, 5,000 shares of $50 par preferred stock were issued at $111. Journalize the entries for May 1 and May 7. 150.The dates of importance in connection with a cash dividend of $65,000 on.

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%.

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.

129.Alpha and Beta are partners who share income in the ratio of 1:2 and have capital balances of $40,000 and $70,000 at the time they decide to terminate the partnership. After all noncash assets are sold and all liabilities are paid, there is a cash balance of $50,000. What amount.

139.Antonio and Barbara are partners who share income in the ratio of 1:2 and have capital balances of $40,000 and $70,000 at the time they decide to terminate the partnership. After all noncash assets are sold and all liabilities are paid, there is a cash balance of $80,000. What amount.

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.

161.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. Required: (1) Journalize the.

59.Which of the following is characteristic of a general partnership? A.The partners have co-ownership of partnership property. B.The partnership is subject to federal income tax. C.The partnership has an unlimited life. D.The partners have limited liability. 60.Which of the following is not a characteristic of a general partnership? A.the partnership is created by a contract B.mutual agency C.partners.

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.

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.

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.

79.Xavier and Yolonda have original investments of $50,000 and $100,000 respectively in a partnership. The articles of partnership include the following provisions regarding the division of net income: interest on original investment at 10%, salary allowances of $27,000 and $18,000 respectively, and the remainder equally. How much of the net.

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..

69.When a partnership is formed, assets contributed by the partners should be recorded on the partnership books at their A.book values on the partners' books prior to their being contributed to the partnership B.fair market value at the time of the contribution C.original costs to the partner contributing them D.assessed values for property.

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.

166.On February 1, Marine Company reacquired 7,500 shares of its common stock at $30 per share. On March 15, Marine sold 4,500 of the reacquired shares at $34 per share. On June 2, Marine sold the remaining shares at $28 per share. Required: Journalize the transaction of February 1, March 15,.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

175.Gleason invested $65,000 in the James and Kirk partnership for ownership equity of $65,000. Prior to the investment land was revalued to a market value of $350,000 from a book value of $200,000. James and Kirk share net income in a 1:2 ratio. a. Provide the journal entry for the revaluation.

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.

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.

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.