Question 1

The following data has been collected about Keller Company's stockholders' equity accounts:   Common stock $10 par value 20,000 shares $100,000 authorized and 10,000 shares issued, 9,000 shares outstanding  Paid-in capital in excess of par value, common stock 50,000 Retained earnings 25,000 Treasury stock 11,500\begin{array}{lr}	ext { Common stock } \$ 10 	ext { par value } 20,000 	ext { shares } & \$ 100,000\	ext { authorized and } 10,000 	ext { shares issued, } 9,000 	ext { shares outstanding }\	ext { Paid-in capital in excess of par value, common stock } & 50,000 \	ext { Retained earnings } & 25,000 \	ext { Treasury stock } & 11,500\end{array} Common stock $10 par value 20,000 shares  authorized and 10,000 shares issued, 9,000 shares outstanding  Paid-in capital in excess of par value, common stock  Retained earnings  Treasury stock ​$100,00050,00025,00011,500​  Assuming the treasury shares were all purchased at the same price, the number of shares of treasury stock is:

Accepted Answer

A)  1,150.
B)  11,000.
C)  1,000.
D)  21,000.
E)  575. F) B) and C)
G) C) and E)

Question 2

The costs of bringing a corporation into existence, including legal fees, promoter fees, and amounts paid to obtain a charter are called:

Accepted Answer

A)  Minimum legal capital.
B)  Selling expenses.
C)  Prepaid fees.
D)  Organization expenses.
E)  Stock subscriptions.F) A) and B)
G) A) and C)

Question 3

A company's board of directors votes to declare a cash dividend of $1.00 per share on its 12,000 common shares outstanding. The journal entry to record the declaration of the cash dividend is:

Accepted Answer

A)  Debit Dividend Expense $12,000; credit Common Dividend Payable $12,000.
B)  Debit Dividend Expense $12,000; credit Cash $12,000.
C)  Debit Retained Earnings $12,000; credit Common Dividend Payable $12,000.
D)  Debit Common Dividend Payable $12,000; credit Retained Earnings $12,000.
E)  Debit Common Dividend Payable $12,000; credit Cash $12,000.F) B) and D)
G) C) and D)

Question 4

Book value per share reflects the value per share if a company is liquidated at balance sheet amounts.

Accepted Answer

A) True 
 B)False

Question 5

The dividend yield is computed by dividing:

Accepted Answer

A)  Market price per share by cash dividends per share.
B)  Annual cash dividends per share by the market value per share.
C)  Annual cash dividends per share by earnings per share.
D)  Earnings per share by cash dividends per share.
E)  Cash dividends per share by retained earnings.F) B) and D)
G) B) and C)

Question 6

Prior to June 30, a company has never had any treasury stock transactions. A company repurchased 100 shares of its $1 par common stock on June 30 for $40 per share. On July 20, it reissued 50 of these shares at $46 per share. On August 1, it reissued 20 of the shares at $38 per share. What is the journal entry necessary to record the repurchase of stock on June 30?

Accepted Answer

A)  Debit Cash $4,000; credit Treasury Stock $4,000.
B)  Debit Common Stock $100; debit Treasury Stock $3,900; credit Cash $4,000.
C)  Debit Common Stock $4,000; credit Cash $4,000.
D)  Debit Treasury Stock $3,900; debit Paid-in Capital, Treasury Stock $100; credit Cash $4,000.
E)  Debit Treasury Stock, Common $4,000; credit Cash $4,000.F) B) and E)
G) A) and C)

Question 7

Hutter Corporation declared a $0.50 per share cash dividend on its common shares. The company has 20,000 shares authorized, 9,000 shares issued, and 8,000 shares of common stock outstanding. The journal entry to record the dividend declaration is:

Accepted Answer

A)  Debit Retained Earnings $4,000; credit Common Dividends Payable $4,000.
B)  Debit Common Dividends Payable $4,000; credit Cash $4,000.
C)  Debit Retained Earnings $10,000; credit Common Dividends Payable $10,000.
D)  Debit Retained Earnings $4,500; credit Common Dividends Payable $4,500.
E)  Debit Common Dividends Payable $4,500; credit Cash $4,500.F) A) and E)
G) A) and D)

Exam 13: Accounting for Corporations

Book value per share reflects the value per share if a company is liquidated at balance sheet amounts.

Correct Answer
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The dividend yield is computed by dividing:

Correct Answer
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Correct Answer
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A company's board of directors votes to declare a cash dividend of $1.00 per share on its 12,000 common shares outstanding. The journal entry to record the declaration of the cash dividend is:

Correct Answer
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The costs of bringing a corporation into existence, including legal fees, promoter fees, and amounts paid to obtain a charter are called:

Correct Answer
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Hutter Corporation declared a $0.50 per share cash dividend on its common shares. The company has 20,000 shares authorized, 9,000 shares issued, and 8,000 shares of common stock outstanding. The journal entry to record the dividend declaration is:

Correct Answer
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Correct Answer
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Exam 13: Accounting for Corporations

Book value per share reflects the value per share if a company is liquidated at balance sheet amounts.

Correct AnswerverifiedShow Answer

The dividend yield is computed by dividing:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A company's board of directors votes to declare a cash dividend of $1.00 per share on its 12,000 common shares outstanding. The journal entry to record the declaration of the cash dividend is:

Correct AnswerverifiedShow Answer

The costs of bringing a corporation into existence, including legal fees, promoter fees, and amounts paid to obtain a charter are called:

Correct AnswerverifiedShow Answer

Hutter Corporation declared a $0.50 per share cash dividend on its common shares. The company has 20,000 shares authorized, 9,000 shares issued, and 8,000 shares of common stock outstanding. The journal entry to record the dividend declaration is:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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