Look for some guidance with some accounting work. See attached

Please answer all multiple choice questions and problems. 1. If a stockholder receives a dividend that reduces retained earnings by the fair market value of the stock, the stockholder has received a a. b. c. d. 2. Which is the largest number of common shares? a. b. c. d. 3. credit to Gain on Sale of Treasury Stock for $5,000. credit to Paid-in Capital from Treasury Stock for $5,000. debit to Paid-in Capital in Excess of Par Value for $3,000. credit to Treasury Stock for $8,000. Which of the following statements is an advantage of a corporation? a. b. c. d. 6. increase the market price per share. increase the marketability of the stock. exceed stockholders' dividend expectations. decrease the amount of capital in the corporation. Baker Corporation sold 200 shares of treasury stock for $40 per share. The cost for the shares was $15. The entry to record the sale will include a a. d. b. c. 5. Issued shares Outstanding shares Authorized shares All are the same Corporations normally issue stock dividends instead of cash dividends in order to a. b. b. d. 4. large stock dividend. small stock dividend contingent dividend cash dividend. Additional taxes Limited liability of stockholders Government regulations Separation of ownership and management If Stellar Company issues 5,000 shares of $4 par value common stock for $70,000, the account a. Paid-in Capital in Excess of Par Value will be credited for $70,000. b. Cash will be debited for $55,000. c. Paid-in Capital in Excess of Par Value will be credited for $50,000. d. Common Stock will be credited for $70,000 7. Stock that is preferred as to assets means that a. Holders stocks are common stock. b. Holders receive priority on distribution of dividends. c. Holders stocks are convertible d. Holders have priority to residual claim of company in case of liquidation. 8. Jenny Brown has invested $150,000 in a privately held family corporation. The corporation does not do well and must declare bankruptcy. What amount does Jenny stand to lose? a. Zero. b. The $150,000 plus any personal assets the creditors demand. c. Up to his total investment of $150,000. d. $100,000. . 9. Prior period adjustments a. b. c. d. 10. may increase retained earnings. may decrease retained earnings. do not affect retained earnings. both a and b. Retained earnings is increased by each of the following except a. b. c. d. net income. some disposals of treasury stock below cost prior period adjustments. All of these increase retained earnings 11. A stock split that increases the number of shares of stock also: a. reduces retained earnings and increases the paid-in capital. b. usually creates a credit to a Paid-in in Excess of Par account. c. decreases the par value per share of the stock in direct proportion to the stock split. d. all of the above are correct 12. What is ordinarily the first step in the formation of a corporation? a. Development of by-laws for the corporation b. Application for incorporation to the appropriate Secretary of State c. Issuance of the corporate charter d. Registration with the SEC 13. Before paying a cash dividend, which of the following is unnecessary for a corporation? a. Adequate cash b. Declaration of dividends by the board of directors c. Approval of stockholders d. Retained earnings 14. Which of the following statements regarding a small stock dividend payable to common stockholders is true? a. A small stock dividend reduces paid-in capital. b. A small stock dividend reduces the individual stockholder's percentage of ownership in the corporation. c. A small stock dividend is recorded at the current market value of the outstanding shares. d. Stock Dividends Payable is a long-term liability account. 15. Pimento Inc. has 10,000 shares of 7%, $100 par value, cumulative preferred stock and 100,000 shares of $1 par value common stock outstanding at December 31, 2014. What is the annual dividend on the preferred stock? a. $70 per share b. $100,000 in total c. $0.70 per share d. $70,000 in total 16. In the preparation of a balance sheet, which of the following statements is true? a. No reference needs to be made to treasury stock, since the acquisition of such stock does not restrict retained earnings. b. Treasury shares and unissued shares can be reported as a total of shares not outstanding with no distinguishing comments. c. Treasury shares should be shown as a deduction, at cost, from stockholders' equity. d. Treasury shares should be shown as a deduction, at cost, from the total paid-in capital of the company. 17. Rivera Inc. had 500,000 shares of common stock outstanding before a stock split occurred, and 2,000,000 shares outstanding after the stock split. The stock split was a. 2-for-4. b. 4-for-1 c. 5-for-1. d. 1-for-5. 18. The following selected amounts are available for May Company. Retained earnings (beginning) Net income Cash dividends declared Stock dividends declared $1,600 200 300 200 What is its ending retained earnings balance? a $1,300 b $1,400 c $1,500 d $1,100 19. A disclosure in the financial statements stating that preferred dividends are two years in arrears means that the preferred stock is: a. convertible b. None of the other answers. c. callable. d. cumulative. 20. The Blair Corporation issued 240 shares of common stock (par value $200 per share) for land having a fair market value of $60,000 at the date of transfer. Which of the following is the required entry? a. Land 60,000 Common Stock 60,000 b. Land 48,000 Common Stock 48,000 c. Land Common Stock Paid-in Capital in Excess of Stated Value 60,000 Land Common Stock Paid-in Capital in Excess of Par Value 60,000 48,000 12,000 d. 48,000 12,000 PROBLEM 1 On January 1, 2010, Johnson Corporation had 60,000 shares of $1 par value common stock issued and outstanding. During the year, the following transactions occurred: Mar. 1 Issued 30,000 shares of common stock for $420,000. June 1 Declared a cash dividend of $2 per share to stockholders of record on June 15 (note: add beginning shares outstanding with the shares issued on Mar 1 to get total stockholders of record) June 30 Paid the $2 cash dividend. Dec. Purchased 10,000 shares of common stock for the treasury for $15 per share. Dec.20 1 Reissued 4,000 shares of treasury stock for $18 each. Dec.30 Reissued 6,000 shares of treasury stock for $11 each. Dec. 31 Declared a 3% stock dividend on its common stock when the market value of the common stock was $11 per share. Instructions Prepare journal entries to record the above transactions. Use the table below (may need to use tab keys to move within the table) Date Account Debit Credit PROBLEM 2 The following information is available for Paper Inc.: Beginning retained earnings Cash dividends declared Net income for 2014 Stock dividend declared Understatement of last year's depreciation expense $600,000 30,000 140,000 10,000 30,000 Instructions Based on the preceding information, prepare a retained earnings statement for 2014 PAPER INC. Retained Earnings Statement For the Year Ended December 31, 2014 PROBLEM 3 Banner Corporation was organized on January 1, 2013. During its first year, the corporation issued 40,000 shares of $5 par value preferred stock and 400,000 shares of $1 par value common stock. At December 31, the company declared the following cash dividends: 2013 2014 2015 $ 7,000 $20,000 $60,000 Instructions (a) Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 4% of the $5 par value and is not cumulative. (b) Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 6% of the $5 par value and is cumulative. c) Journalize the declaration of the cash dividend at December 31, 2015 (a) Preferred Common Total Preferred Common Total 2013 2014 2015 (b) 2013 2014 2015 (c) Date Account Debit Credit