1. MC.13.94.ALGO

Question Content Area

The charter of a corporation provides for the issuance of 110,865 shares of common stock. Assume that 40,075 shares were originally issued and 4,547 were subsequently reacquired. What is the amount of cash dividends to be paid if a $2-per-share dividend is declared?

a. $110,865

b. $4,547

c. $71,056

d. $40,075

2. MC.13.94

Question Content Area

The charter of a corporation provides for the issuance of 100,000 shares of common stock. Assume that 60,000 shares were originally issued and 10,000 were subsequently reacquired. What is the amount of cash dividends to be paid if a $2-per-share dividend is declared?

a. $20,000

b. $120,000

c. $100,000

d. $60,000

3. MC.13.77.ALGO

Question Content Area

Nebraska Inc. issues 3,050 shares of common stock for $97,600. The stock has a stated value of $10 per share. The journal entry for the stock issuance would include a credit to Common Stock for

a. $97,600

b. $3,050

c. $67,100

d. $30,500

4. MC.13.115

Question Content Area

A corporation has 50,000 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 par value of the stock after the split will be

a. $5

b. $24

c. $25

d. $60

5. MC.13.83.ALGO

Question Content Area

The charter of a corporation provides for the issuance of 103,000 shares of common stock. Assume that 63,000 shares were originally issued and 10,700 were subsequently reacquired. What is the number of shares outstanding?

a. 63,000

b. 103,000

c. 52,300

d. 10,700

6. MC.13.76

Question Content Area

The par value per share of common stock represents the

a. minimum amount the stockholder will receive when the corporation is liquidated

b. dollar amount assigned to each share

c. minimum selling price of the stock established by the articles of incorporation

d. amount of dividend per share to be received each year

7. MC.13.125

Question Content Area

A corporation purchases 10,000 shares of its own $10 par common stock for $35 per share, recording it at cost. What will be the effect on total stockholders' equity?

a. increase by $100,000

b. increase by $350,000

c. decrease by $350,000

d. decrease by $100,000

8. MC.13.122

Question Content Area

Treasury stock that was purchased for $3,000 is sold for $3,500. As a result of these two transactions combined,

a. stockholders' equity will not change

b. stockholders' equity will be increased by $500

c. stockholders' equity will be increased by $3,500

d. income will be increased by $500

9. MC.13.65

Question Content Area

Under the corporate form of business organization,

a. stockholders wishing to sell their corporate shares must get the approval of other stockholders

b. ownership rights are easily transferred

c. a stockholder is personally liable for the debts of the corporation

d. stockholders acts can bind the corporation even though the stockholders have not been appointed as agents of the corporation

10. MC.13.74

Question Content Area

Which of the following is not a right possessed by common stockholders of a corporation?

a. the right to vote in the election of the board of directors

b. the right to sell their stock to anyone they choose

c. the right to share in assets upon liquidation

d. the right to receive a minimum amount of dividends

11. MC.13.86.ALGO

Question Content Area

If Dakota Company issues 2,600 shares of $6 par common stock for $41,600,

a. Common Stock will be credited for $41,600.

b. Paid-In Capital in Excess of Par will be credited for $15,600.

c. Cash will be debited for $15,600.

d. Paid-In Capital in Excess of Par will be credited for $26,000.

12. MC.13.101

Question Content Area

The liability for a dividend is recorded on which of the following dates?

a. date of record

b. last day of the fiscal year

c. date of declaration

d. date of payment

13. MC.13.91

Question Content Area

When Wisconsin Corporation was formed on January 1, the corporate charter provided for 100,000 shares of $10 par value common stock. During its first month of operation, the corporation issued 8,500 shares of stock at a price of $16 per share.

The journal entry for this transaction would include a

a. debit to Common Stock for $85,000

b. debit to Cash for $85,000

c. credit to Common Stock for $136,000

d. credit to Paid-In Capital in Excess of ParCommon Stock for $51,000

14. MC.13.72

Question Content Area

Stockholders' equity

a. includes paid-in capital and liabilities

b. is usually equal to cash on hand

c. is shown on the income statement

d. includes retained earnings and paid-in capital

15. MC.13.124

Question Content Area

A corporation purchased 1,000 shares of its own $5 par common stock at $10 and subsequently sold 500 of the shares at $20. What amount of revenue is realized from the sale?

a. $0

b. $2,500

c. $10,000

d. $5,000

16. MC.13.130

Question Content Area

Which of the following amounts should be disclosed in the Stockholders' Equity section of the balance sheet?

a. the number of shares of common stock outstanding

b. the number of shares of common stock authorized

c. the number of shares of common stock issued

d. All of these choices

17. MC.13.75

Question Content Area

The charter of a corporation provides for the issuance of 100,000 shares of common stock. Assume that 40,000 shares were originally issued and 10,000 were subsequently reacquired. What is the number of shares outstanding?

a. 40,000

b. 30,000

c. 10,000

d. 50,000

18. MC.13.75.ALGO

Question Content Area

The charter of a corporation provides for the issuance of 107,000 shares of common stock. Assume that 43,000 shares were originally issued and 6,100 were subsequently reacquired. What is the number of shares outstanding?

a. 36,900

b. 43,000

c. 6,100

d. 49,100

19. MC.13.66

Question Content Area

Those most responsible for the major policy decisions of a corporation are the

a. employees

b. board of directors

c. stockholders

d. management

20. MC.13.67

Question Content Area

Which of the following would not be considered an advantage of the corporate form of organization?

a. continuous life

b. limited liability of stockholders

c. separate legal existence

d. government regulation

21. MC.13.132

Question Content Area

Retained earnings

a. is the same as contributed capital

b. changes are summarized in the retained earnings statement

c. is equal to cash on hand

d. cannot have a debit balance

22. MC.13.92

Question Content Area

Sabas Company has issued and outstanding 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:

Year 1	$10,000
Year 2	45,000
Year 3	90,000

Determine the dividend per share for preferred and common stock for the second year.

a. $2.25 and $0.45

b. $2.25 and $0

c. $0 and $0.45

d. $2.00 and $0.45

23. MC.13.111

Question Content Area

A corporation has 50,000 shares of $28 par stock outstanding that has a current market value of $150 per share. If the corporation issues a 4-for-1 stock split, the market value of the stock will fall to approximately

a. $112.00

b. $7.00

c. $37.50

d. $600.00

24. MC.13.89.ALGO

Question Content Area

Alma Corp. issues 860 shares of $7 par common stock at $17 per share. When the transaction is journalized, credits are made to

a. Common Stock, $6,020 and Paid-In Capital in Excess of ParCommon Stock, $8,600.

b. Common Stock, $14,620.

c. Common Stock, $6,020 and Retained Earnings, $8,600.

d. Common Stock, $8,600 and Paid-In Capital in Excess of Stated Value, $6,020.

25. MC.13.62

Question Content Area

Characteristics of a corporation include

a. direct management by the shareholders (owners)

b. shareholders who are mutual agents

c. shareholders who have limited liability

d. its inability to own property