Common Stock'S Par Value Is ______.

Question: An IPO ______. (Select all that apply.)a. stands for initial public offeringb. stands for independent public obligationsc. stands for issued private optionsd. is when a private company goes public

Answer: A, D

Question: Retained Earnings is ______. (Select all that apply.)a. equal to cashb. decreased by purchases of landc. increased by net incomed. all of the company's earnings kept rather than distributed to shareholderse. decreased by dividends

Answer: C, D, E

Question: Sea the World Cruises, Inc., began operations in January by issuing 500,000 shares of $0.10 par value common stock for $10 per share. It also issued 1,000 shares of $150 par value, 6%, cumulative preferred stock for $150 each. The journal entry to record the issuance of the preferred stock includes a ______. (Select all that apply.)a. debit Cash $9,000b. debit Preferred Stock $150,000c. debit Preferred Stock $9,000d. credit Cash $9,000e. credit Preferred Stock $9,000f. debit Cash $150,000g. credit Cash $150,000h. credit Preferred Stock $150,000

Answer: F, H

Question: The arbitrary amount assigned by a company to a share of its stock is the ______.a. no - par valueb. par valuec. none of these is correctd. capital valuee. total value

Answer: B

Question: The company is authorized to sell 500,000 shares. The entry to record the issuance of 36,000 shares of $2 par value common stock at $12 per share would include a credit to Common Stock of what amount?

Answer: 72000

Question: Dewey, Cheatem & Howe, Inc., received cash from selling 500 shares of its $0.50 par value common stock at $12 per share. What happens to assets?A. 0 No EffectB. (6,000) Common StcokC. 250 Common StockD. 6,000 Common StockE. 250 Common Stock; 5,750 Paid-in Capital in Excess of ParF. 5,750 Common Stock; 250 Paid-in Capital in Excess of ParG. (250) Common Stock; (5,750) Paid-in Capital in Excess of ParH. 6,000 Sales RevenueI. 6,000 CashJ. 250 CashK. (6,000) Cash

Answer: I

Question: Dewey, Cheatem & Howe, Inc., received cash from selling 500 shares of its $0.50 par value common stock at $12 per share. What happens to liabilities?A. 0 No EffectB. (6,000) Common StcokC. 250 Common StockD. 6,000 Common StockE. 250 Common Stock; 5,750 Paid-in Capital in Excess of ParF. 5,750 Common Stock; 250 Paid-in Capital in Excess of ParG. (250) Common Stock; (5,750) Paid-in Capital in Excess of ParH. 6,000 Sales RevenueI. 6,000 CashJ. 250 CashK. (6,000) Cash

Answer: A

Question: Dewey, Cheatem & Howe, Inc., received cash from selling 500 shares of its $0.50 par value common stock at $12 per share. What happens to SE?A. 0 No EffectB. (6,000) Common StcokC. 250 Common StockD. 6,000 Common StockE. 250 Common Stock; 5,750 Paid-in Capital in Excess of ParF. 5,750 Common Stock; 250 Paid-in Capital in Excess of ParG. (250) Common Stock; (5,750) Paid-in Capital in Excess of ParH. 6,000 Sales RevenueI. 6,000 CashJ. 250 CashK. (6,000) Cash

Answer: E

Question: Before common dividends can be paid, the ______ preferred stock must be paid ______.a. current; interest owedb. cumulative; dividends in arrearsc. cumulative; interest owedd. common; dividends

Answer: B

Question: In Year 1, Stock to the Hand, Inc., issued 30,000 shares of the 800,000 shares of $0.70 par value common stock it is allowed to sell. The total received from issuing its common stock is $700,000. Stock to the Hand bought back 3,000 shares of its stock at a cost of $13 each. On December 31, the last day of Year 1, Stock to the Hand declared and paid a $0.80 per share dividend to its common shareholders. Stock to the Hand has no preferred stock. Paid in Capital in Excess of Par on the balance sheet at December 31, Year 1, equals ______.

Answer: 679000

Question: Z Best, Inc.'s, corporate charter allows it to issue a maximum of 1,000,000 shares of common stock. In its first year of business, the company sold 300,000 shares of common stock. During the year, the company bought back 7,000 shares to be held as treasury stock. The number of shares of common stock issued equals ______ shares.

Answer: 300000

Question: Treasury Stock is reported in the ______.a. equity section of the balance sheetb. financing activities section of the income statementc. liability section of the balance sheetd. contra-asset section of the balance sheet

Answer: A

Question: A company paid $20 per share to purchase 500 shares of its common stock as treasury stock. The stock was originally issued at $16 per share. The journal entry to record the purchase of the treasury stock is ______.a. debit Common Stock $10,000; credit Cash $10,000b. debit Treasury Stock $10,000; credit Cash $10,000c. debit Treasury Stock $5,000 and Paid-in Capital in Excess of Par $5,000; credit Cash $10,000d. debit Treasury Stock $8,000 and Retained Earnings $2,000; credit Cash $10,000e. debit Treasury Stock $8,000; credit Cash $8,000

Answer: B

Question: There were 10,000 shares issued and outstanding before T-ball, Inc., decided to buy back some of its own stock to have on hand for end-of-year bonuses. It buys 200 shares at $30 per share. What happens to assets?A. 0 No EffectB. (10,000) Treasury StockC. (6,000) Treasury StockD. 10,000 Common Stock; (10,000) Treasury StockE. 6,000 Common Stock; (6,000) Treasury StockF. (10,000) CashG. (6,000) CashH. 6,000 Cash

Answer: G

Question: There were 10,000 shares issued and outstanding before T-ball, Inc., decided to buy back some of its own stock to have on hand for end-of-year bonuses. It buys 200 shares at $30 per share. What happens to liabilities?A. 0 No EffectB. (10,000) Treasury StockC. (6,000) Treasury StockD. 10,000 Common Stock; (10,000) Treasury StockE. 6,000 Common Stock; (6,000) Treasury StockF. (10,000) CashG. (6,000) CashH. 6,000 Cash

Answer: A

Question: There were 10,000 shares issued and outstanding before T-ball, Inc., decided to buy back some of its own stock to have on hand for end-of-year bonuses. It buys 200 shares at $30 per share. What happens to SE?A. 0 No EffectB. (10,000) Treasury StockC. (6,000) Treasury StockD. 10,000 Common Stock; (10,000) Treasury StockE. 6,000 Common Stock; (6,000) Treasury StockF. (10,000) CashG. (6,000) CashH. 6,000 Cash

Answer: C

Question: Sock Market's corporate charter allows it to issue 1,000,000 shares of common stock. In its first year of business, Sock Market sold 800,000 shares of common stock in January, Year 1. Sock Market bought back 8,000 shares of its stock during December, Year 1. At December 31, Year 1, how many shares of common stock are outstanding?

Answer: 792000

Question: Dividends Payable is a ______ account with a normal ______ balance and is recorded on the ______ date.a. liability; debit; paymentb. shareholders' equity; credit; recordc. shareholders' equity; debit; declarationd. shareholders' equity; credit; declaratione. liability; credit; declaration

Answer: E

Question: On December 1, Year 1, the board of directors of Buy & Large, Inc., declared a cash dividend of $2 per share on the 300,000 common shares outstanding on record at December 31, Year 1, payable January 10, Year 2, the following year. No other dividends were declared in either year. What is the amount and on which Year 1 financial statement does Dividends appear?A. $(600,000); Income StatementB. $600,000; Income StatementC. $(600,000); Statement of Shareholders' EquityD. $600,000; Statement of Shareholders' EquityE. $(600,000); Statement of Cash FlowsF. $600,000; Statement of Cash FlowsG. $(600,000); Balance SheetH. $600,000; Balance Sheet

Answer: C

Question: On December 1, Year 1, the board of directors of Buy & Large, Inc., declared a cash dividend of $2 per share on the 300,000 common shares outstanding on record at December 31, Year 1, payable January 10, Year 2, the following year. No other dividends were declared in either year. What is the amount and on which Year 1 financial statement does Dividends Payable appear?A. $(600,000); Income StatementB. $600,000; Income StatementC. $(600,000); Statement of Shareholders' EquityD. $600,000; Statement of Shareholders' EquityE. $(600,000); Statement of Cash FlowsF. $600,000; Statement of Cash FlowsG. $(600,000); Balance SheetH. $600,000; Balance Sheet

Answer: H

Question: The date of record is the date on which the corporation ______.a. records a credit to Dividends Payableb. makes a payment to the shareholders of recordc. records a credit to Cashd. finalizes its list of shareholders who will receive dividendse. records its obligation to pay a dividend

Answer: D

Question: The entry to record the payment of a cash dividend previously declared includes a debit to ______.a. Retained Earnings and a credit to Cashb. Retained Earnings and a credit to Dividends Payablec. Dividends Payable and a credit to Cashd. None of these is correct

Answer: C

Question: Retained Earnings represents ______ by the corporation.a. cumulative cash earnedb. cumulative cash retainedc. cumulative cash distributedd. profits declared and distributede. cumulative net income kept

Answer: E

Question: At December 31, Year 1, Stock to the Hand, Inc.'s, assets were $250,000 and liabilities were $150,000. At December 31, Year 2, Stock to the Hand's assets were $320,000 and liabilities were $200,000. During Year 2, Stock to the Hand's revenues were $87,000 and expenses were $47,000. No new stock was issued. Dividends for December 31, Year 2, on the statement of shareholders' equity equals $_______.

Answer: 20000

Question: Just In Thyme, Inc., has the following year-end shareholders' equity balances: Common Stock of $20,000; Paid-in Capital in Excess of Par of $30,000; and Retained Earnings of $50,000. If Just In Thyme repurchases $10,000 of its stock, the total shareholders' equity balance would equal ______.

Answer: 90000

Question: The line item Repurchase of Treasury Stock is reported in the ______.a. contra-asset section of the balance sheetb. liability section of the balance sheetc. financing activities section of the statement of cash flowsd. financing activities section of the income statement

Answer: C

Question: When a shareholder sells its shares to another person for more than its original cost, the corporation ______a. does not make a journal entryb. increases Retained Earningsc. records a debit to Treasury Stockd. records a gain on the sale of stocke. records a credit to Common Stock

Answer: A

Question: Retained Earnings reports ______ by the business. (Select all that apply.)a. cumulative cash retainedb. cumulative revenuesc. cumulative profits retainedd. cumulative net income kepte. cumulative cash earned

Answer: C, D

Question: Tissues, Inc., began operations in January by issuing 10,000 shares of $0.10 par value common stock for $10 per share. It also issued 1,000 shares of $50 par value, 4%, noncumulative preferred stock for $50 each. Net income for the year was $500,000 and dividends were $44,000. The journal entry to record the issuance of the preferred stock includes a ______. (Select all that apply.)a. credit Preferred Stock $50,000b. debit Preferred Stock $50,000c. debit Cash $50,000d. debit Cash $2,000e. credit Preferred Stock $2,000f. credit Cash $50,000g. credit Cash $2,000h. debit Preferred Stock $2,000

Answer: A, C

Question: Common stock's par value ______. (Select all that apply.)a. was introduced in order to prevent bankrupt companies from paying dividendsb. affects how common stock is recordedc. has become less meaningful because states use other means to prevent dividend paymentsd. equals the amount of cash contributed by shareholders

Answer: A, B, C

Question: Stacos Bell, Inc., issues 100 shares of $10 par value common stock for $50 per share. This transaction will include a ______.a. credit to Common Stock fo $1,000 and a credit to Paid-in Capital in Excess of Par for $4,000b. debit to Common Stock for $5,000c. credit to Common Stock for $5,000d. credit to Common Stock for $1,000 and a credit to Retained Earnings for $4,000e. debit to Common Stock fo $1,000 and a debit to Paid-in Capital in Excess of Par for $4,000f. debit to Cash for $1,000 and credit to Common Stock for $1,000g. credit to Common Stock fo $1,000 and a Gain on Issue of Common Stock for $4,000

Answer: A

Question: Quiche & Tell, Inc., is authorized to sell 2,000,000, $3 par value common stock. On May 3, it issued 60,000 at $11 each. The journal entry to record the issuance of this stock includes a ______. (Select all that apply.)a. debit Cash $22,000,000b. credit Paid-in Capital in Excess of Par $480,000c. credit Common Stock $660,000d. debit Cash $660,000e. credit Common Stock $180,000f. credit Cash $660,000g. debit Common Stock $22,000,000h. credit Common Stock $22,000,000

Answer: B, D, E

Question: AnuU, Inc., sold 100,000 shares of the 1,000,000 shares it is allowed to sell. AnuU repurchased 10,000 of these shares. The number of shares issued equals ______ shares.

Answer: 100000

Question: Treasury Stock represents ______. (Select all that apply.)a. a contra-equity accountb. stock sold in excess of par valuec. stock issued in exchange for treasury billsd. stock issued in exchange for U.S. treasury stocke. the amount paid for stock reacquired and currently held in its treasury

Answer: A, E

Question: Select those statements below that are true about cash dividends. (Select all that apply.)a. On the declaration date, liabilities are increased.b. On the payment date, current assets are decreased.c. On the date of record, shareholders' equity is decreased.d. On the payment date, shareholders' equity is decreased.

Answer: A, B

Question: Common stock's par value is ______.a. the common stock's average priceb. a minimal amount specified in the corporate charterc. the same as the common stock's market priced. the same as a bond's par value

Answer: B

Question: The company is authorized to sell 500,000 shares. The entry to record the issuance of 39,000 shares of $3 par value common stock at $11 per share would include a credit to Common Stock of what amount? If the amount should be a debit, enter 0.

Answer: 117000

Question: Preferred stock is advantageous in that it ______.a. has priority over creditors at liquidationb. has priority over common stock when dividends are declaredc. receives dividends before creditors are to receive any interest paymentsd. has priority over common stock at liquidation

Answer: B, D

Question: In Year 1, Stock to the Hand, Inc., issued 100,000 shares of the 1,500,000 shares of $0.60 par value common stock it is allowed to sell. The total received from issuing its common stock is $500,000. Stock to the Hand bought back 5,000 shares of its stock at a cost of $7 each. The entry to record the purchase of its stock includes a ______. (Select all that apply.)a. credit Cash $35,000b. debit Cash $35,000c. credit Common Stock $35,000d. debit Treasury Stock $35,000e. credit Treasury Stock $35,000f. debit Common Stock $35,000g. debit Paid-in Capital in Excess of Par $35,000

Answer: A, D

Question: On December 1, Garden of Eat'n, Inc., declared a $0.25 per share dividend to its common shareholders to be paid to those on record at the close of business December 31. The dividend is to be paid on January 7 of the following year. On which date should Dividends Payable be credited?a. January 7b. December 31c. December 1

Answer: C

Question: On December 1, the board of directors of Buy & Large, Inc., declared a cash dividend of $2 per share on the 300,000 common shares outstanding on record at December 31, payable January 10 of the following year. No other dividends were declared in either year. Show the effect on the accounting equation of the entry to be recorded on January 10. What happened to assets?A. (600,000) Treasury StockB. (600,000) Paid-in Capital in Excess of ParC. 600,000 Dividends PayableD. 600,000 Common StockE. (600,000) Common StockF. (600,000) DividendsG. 600,000 CashH. (600,000) CashI. 0 No EffectJ. (600,000) Dividends Payable

Answer: H

Question: On December 1, the board of directors of Buy & Large, Inc., declared a cash dividend of $2 per share on the 300,000 common shares outstanding on record at December 31, payable January 10 of the following year. No other dividends were declared in either year. Show the effect on the accounting equation of the entry to be recorded on January 10. What happened to liabilities?A. (600,000) Treasury StockB. (600,000) Paid-in Capital in Excess of ParC. 600,000 Dividends PayableD. 600,000 Common StockE. (600,000) Common StockF. (600,000) DividendsG. 600,000 CashH. (600,000) CashI. 0 No EffectJ. (600,000) Dividends Payable

Answer: J

Question: On December 1, the board of directors of Buy & Large, Inc., declared a cash dividend of $2 per share on the 300,000 common shares outstanding on record at December 31, payable January 10 of the following year. No other dividends were declared in either year. Show the effect on the accounting equation of the entry to be recorded on January 10. What happened to SE?A. (600,000) Treasury StockB. (600,000) Paid-in Capital in Excess of ParC. 600,000 Dividends PayableD. 600,000 Common StockE. (600,000) Common StockF. (600,000) DividendsG. 600,000 CashH. (600,000) CashI. 0 No EffectJ. (600,000) Dividends Payable

Answer: I

Question: The closing entry required at year end, includes a ______. (Select all that apply.)a. debit to Dividends Payableb. credit to Retained Earningsc. debit to Dividendsd. debit to Retained Earningse. credit to Dividendsf. credit to Dividends Payable

Answer: D, E

Question: On April 30, Victoria Secreto sold 1,000 shares of her Limited, Inc.'s common stock to Claire Jewels for $8,000. The stock cost Victoria $5,000. Limited, Inc.'s accounting equation ______.a. is not affected b/c the corp. is separate from its ownersb. will show a decrease in total assets and total shareholders' equityc. will show an increase in total assets and total shareholders' equityd. will show an increase in Retained Earningse. is not affected b/c of the cost principle

Answer: A

Question: Brewed Awakenings, Inc., issued 1,000 shares of its 5%, $100 par value, cumulative preferred stock for $100 per share. The journal entry to record this event includes a ______. (Select all that apply.)a. $100,000 debit to Cashb. $100,000 credit to Cashc. $100,000 credit to Preferred Stockd. $5,000 credit to Preferred Stocke. $95,000 credit to Preferred Stockf. $95,000 debit to Cash

Answer: A, C

Question: Squid Roe, Inc., is authorized to sell 1,000,000, $2 par value common stock. On May 3, it sold 40,000 at $10 each. The journal entry to record the issuance of this stock includes a ______. (Select all that apply.)a. debit Common Stock $10,000,000b. credit Paid-in Capital in Excess of Par $320,000c. debit Cash $10,000,000d. credit Common Stock $80,000e. credit Common Stock $10,000,000f. debit Cash $400,000g. credit Common Stock $400,000

Answer: B, D, F

Question: The company is authorized to sell 100,000 shares. The entry to record the issuance of 16,000 shares of $5 par value common stock at $12 per share would include a credit to Paid-in Capital in Excess of Par Value of what amount? If the amount should be a debit, enter 0.

Answer: 112000

Question: Daffy Duct, Inc., began operations in January by issuing 100,000 shares of $1 par value common stock for $5 per share. It also issued 10,000 shares of $50 par value, 5%, cumulative preferred stock for $50 each. Net income for the year was $500,000 and dividends were $44,000. What happens to assets?A. 0 No EffectB. 100,000 CashC. (100,000) CashD. 500,000 Common StockE. 100,000 Common StockF. (100,000) Common StockG. (500,000) Common StockH. 500,000 CashI. (500,000) CashJ. 400,000 Common Stock; 100,000 Paid-in Capital in Excess of ParK. 100,000 Common Stock; 400,000 Paid-in Capital in Excess of ParL. (400,000) Common Stock; (100,000) Paid-in Capital in Excess of ParM. (100,000) Common Stock; (400,000) Paid-in Capital in Excess of Par

Answer: H

Question: Daffy Duct, Inc., began operations in January by issuing 100,000 shares of $1 par value common stock for $5 per share. It also issued 10,000 shares of $50 par value, 5%, cumulative preferred stock for $50 each. Net income for the year was $500,000 and dividends were $44,000. What happens to liabilities?A. 0 No EffectB. 100,000 CashC. (100,000) CashD. 500,000 Common StockE. 100,000 Common StockF. (100,000) Common StockG. (500,000) Common StockH. 500,000 CashI. (500,000) CashJ. 400,000 Common Stock; 100,000 Paid-in Capital in Excess of ParK. 100,000 Common Stock; 400,000 Paid-in Capital in Excess of ParL. (400,000) Common Stock; (100,000) Paid-in Capital in Excess of ParM. (100,000) Common Stock; (400,000) Paid-in Capital in Excess of Par

Answer: A

Question: Daffy Duct, Inc., began operations in January by issuing 100,000 shares of $1 par value common stock for $5 per share. It also issued 10,000 shares of $50 par value, 5%, cumulative preferred stock for $50 each. Net income for the year was $500,000 and dividends were $44,000. What happens to SE?A. 0 No EffectB. 100,000 CashC. (100,000) CashD. 500,000 Common StockE. 100,000 Common StockF. (100,000) Common StockG. (500,000) Common StockH. 500,000 CashI. (500,000) CashJ. 400,000 Common Stock; 100,000 Paid-in Capital in Excess of ParK. 100,000 Common Stock; 400,000 Paid-in Capital in Excess of ParL. (400,000) Common Stock; (100,000) Paid-in Capital in Excess of ParM. (100,000) Common Stock; (400,000) Paid-in Capital in Excess of Par

Answer: K

Question: There were 10,000 shares issued and outstanding before T-ball, Inc., decided to buy back some of its own stock to have on hand for end-of-year bonuses. It buys 200 shares at $50 per share. The entry to record the purchase of these 200 shares includes a ______. (Select all that apply.)a. debit Cash $10,000b. debit Common Stock $10,000c. debit Treasury Stock $10,000d. credit Common Stock $50,000e. debit Paid-in Capital in Excess of Par $10,000f. credit Cash $10,000

Answer: C, F

Question: In Year 1, Stock to the Hand, Inc., issued 40,000 shares of the 800,000 shares of $0.40 par value common stock it is allowed to sell. The total received from issuing its common stock is $400,000. Stock to the Hand bought back 4,000 shares of its stock at a cost of $14 each. On December 31, the last day of Year 1, Stock to the Hand declared and paid a $0.80 per share dividend to its common shareholders. Stock to the Hand has no preferred stock. Treasury Stock on the balance sheet at December 31, Year 1, equals ______.

Answer: -56000

Question: Sock Market's corporate charter allows it to issue 6,000,000 shares of common stock. In its first year of business, Sock Market sold 700,000 shares of common stock in January, Year 1. Sock Market bought back 7,000 shares of its stock during December, Year 1. At December 31, Year 1, how many shares of common stock are outstanding?

Answer: 693000

Question: On December 1, the board of directors of Buy & Large, Inc., declared a cash dividend of $2 per share on the 300,000 common shares outstanding on record at December 31, payable January 10 of the following year. No other dividends were declared in either year. Show the effect on the accounting equation of the entry to be recorded on December 1: What happened to assets?A. Debit Dividends 600,000B. Debit Common Stock 600,000C. Debit Dividends Payable 600,000D. 0 No EffectE. Debit Cash 600,000F. Credit Common Stock 600,000G. Credit Paid-in Capital in Excess of Par 600,000H. Credit Cash 600,000I. Credit Dividends Payable 600,000J. Debit Dividends and Credit Dividends Payable 600,000

Answer: D

Question: On December 1, the board of directors of Buy & Large, Inc., declared a cash dividend of $2 per share on the 300,000 common shares outstanding on record at December 31, payable January 10 of the following year. No other dividends were declared in either year. Show the effect on the accounting equation of the entry to be recorded on December 1: What happened to liabilities?A. Debit Dividends 600,000B. Debit Common Stock 600,000C. Debit Dividends Payable 600,000D. 0 No EffectE. Debit Cash 600,000F. Credit Common Stock 600,000G. Credit Paid-in Capital in Excess of Par 600,000H. Credit Cash 600,000I. Credit Dividends Payable 600,000J. Debit Dividends and Credit Dividends Payable 600,000

Answer: I

Question: On December 1, the board of directors of Buy & Large, Inc., declared a cash dividend of $2 per share on the 300,000 common shares outstanding on record at December 31, payable January 10 of the following year. No other dividends were declared in either year. Show the effect on the accounting equation of the entry to be recorded on December 1: What happened to SE?A. Debit Dividends 600,000B. Debit Common Stock 600,000C. Debit Dividends Payable 600,000D. 0 No EffectE. Debit Cash 600,000F. Credit Common Stock 600,000G. Credit Paid-in Capital in Excess of Par 600,000H. Credit Cash 600,000I. Credit Dividends Payable 600,000J. Debit Dividends and Credit Dividends Payable 600,000

Answer: A

Question: On June 30, the board of directors of Dive Inn, Inc., declared a cash dividend of $0.20 per share on its $2 par value, 100,000 common shares outstanding. The date of record is the close of business on July 7, payable July 31. The entry to record the declaration of the dividend on June 30 includes ______. (Select all that apply.)a. debit Dividends $20,000b. debit Dividends Payable $20,000c. credit Dividends Payable $2,000d. credit Cash $200,000e. credit Dividends Payable $20,000f. There is no entry made on June 30.g. credit Cash $20,000h. debit Dividends $200,000

Answer: A, E

Question: On July 1, the board of directors of Dive Inn, Inc., declared a cash dividend of $0.10 per share on its $1 par value, 1,000,000 common shares outstanding. The date of record is the close of business on July 12, payable August 31. The entry to record the payment of dividends on August 31 includes a ______. (Select all that apply.)a. debit Dividends $100,000b. debit Dividends Payable $100,000c. debit Dividends $10,000d. credit Dividends $100,000e. credit Cash $100,000f. credit Cash $10,000

Answer: B, E

Question: Which of the following line items would be found on a statement of shareholders' equity? (Select all that apply.)a. Stock Issuancesb. Dividends Expensec. Dividendsd. Dividends Payablee. Net Incomef. Paid-in Capital in Excess of Par

Answer: A, C, E, F

Question: The issuance of common stock in exchange for cash will ______.a. none of these is correctb. affect the financing activities section of the statement of cash flowsc. affect the investing activities section of the statement of cash flowsd. affect the operating activities section of the statement of cash flowse. not affect the statement of cash flows

Answer: B

Question: Retained Earnings of $100,000 represents a corporation's cumulative earnings ______ and is reported on the ______.a. kept; balance sheet and statement of shareholders' equityb. declared; statement of shareholders' equityc. contributed; income statementd. in cash; balance sheet

Answer: A

Question: In Year 1, Stock to the Hand, Inc., issued 50,000 shares of the 800,000 shares of $0.10 par value common stock it is allowed to sell. The total received from issuing its common stock is $100,000. Stock to the Hand bought back 5,000 shares of its stock at a cost of $15 each. On December 31, the last day of Year 1, Stock to the Hand declared and paid a $0.80 per share dividend to its common shareholders. Stock to the Hand has no preferred stock. Paid in Capital in Excess of Par on the balance sheet at December 31, Year 1, equals ______.

Answer: 95000

Question: Treasure This, Inc., had total assets of $100,000, liabilities of $60,000 and shareholders' equity of $40,000 before repurchasing 1,000 shares of its $1 par value common stock for $5 each. After this repurchase, total assets equals _____, liabilities equals ______ and shareholders' equity equals ______.a. $100,000; $65,000; $35,000b. $105,000; $60,000; $45,000c. $95,000; $60,000; $35,000d. $100,000; $55,000; $45,000

Answer: C

Question: Optimeyes, Inc., has $10 par value Common Stock with 1,000,000 shares authorized, and a value of $7,000,000 before purchasing 3,000 shares of common stock. The resulting number of common shares issued and outstanding is ______.a. 750,000 shares issued and 697,000 shares outstandingb. 1,000,000 shares issued and 997,000 shares outstandingc. 750,000 shares issued and 747,000 shares outstandingd. 700,000 shares issued and 697,000 shares outstandinge. 700,000 shares issued and 747,000 shares outstanding

Answer: D

Question: On July 1, the board of directors of Dive Inn, Inc., declared a cash dividend of $0.10 per share on its $1 par value, 1,000,000 common shares outstanding. The date of record is the close of business on July 12, payable August 31. The entry to record the payment of dividends on August 31 includes a ______. (Select all that apply.)a. credit Cash $10,000b. debit Dividends $100,000c. debit Dividends Payable $100,000d. There is no entry made on August 31.e. credit Cash $100,000f. debit Dividends $10,000g. credit Dividends $100,000

Answer: C, E

Question: The amount of shareholders' equity that the corporation has earned through profitable operations of the business and has not given back to shareholders is ______.a. legal capitalb. retained earningsc. treasury stockd. outstanding stocke. none of these is correct

Answer: B

Question: At December 31, Year 1, Stock to the Hand, Inc.'s, assets were $250,000 and liabilities were $150,000. At December 31, Year 2, Stock to the Hand's assets were $320,000 and liabilities were $200,000. During Year 2, Stock to the Hand's revenues were $74,000 and expenses were $47,000. No new stock was issued. Dividends for December 31, Year 2, on the statement of shareholders' equity equals $_______.

Answer: 7000

Question: Tissues, Inc., issued 1,000 shares of its $0.50 par value common stock for $10 per share. Show the effect of issuing the common stock on the accounting equation: What happens to assets?A. 0 No EffectB. 10,000 Common StockC. 500 Common StockD. (10,000) Common StockE. 10,000 CashF. 500 CashG. (10,000) CashH. 9,500 Common Stock; 500 Paid-in Capital in Excess of ParI. 500 Common Stock; 9,500 Paid-in Capital in Excess of ParJ. (500) Common Stock; (9,500) Paid-in Capital in Excess of ParK. (9,500) Common Stock; (500) Paid-in Capital in Excess of Par

Answer: E

Question: Tissues, Inc., issued 1,000 shares of its $0.50 par value common stock for $10 per share. Show the effect of issuing the common stock on the accounting equation: What happens to liabilities?A. 0 No EffectB. 10,000 Common StockC. 500 Common StockD. (10,000) Common StockE. 10,000 CashF. 500 CashG. (10,000) CashH. 9,500 Common Stock; 500 Paid-in Capital in Excess of ParI. 500 Common Stock; 9,500 Paid-in Capital in Excess of ParJ. (500) Common Stock; (9,500) Paid-in Capital in Excess of ParK. (9,500) Common Stock; (500) Paid-in Capital in Excess of Par

Answer: A

Question: Tissues, Inc., issued 1,000 shares of its $0.50 par value common stock for $10 per share. Show the effect of issuing the common stock on the accounting equation: What happens to SE?A. 0 No EffectB. 10,000 Common StockC. 500 Common StockD. (10,000) Common StockE. 10,000 CashF. 500 CashG. (10,000) CashH. 9,500 Common Stock; 500 Paid-in Capital in Excess of ParI. 500 Common Stock; 9,500 Paid-in Capital in Excess of ParJ. (500) Common Stock; (9,500) Paid-in Capital in Excess of ParK. (9,500) Common Stock; (500) Paid-in Capital in Excess of Par

Answer: I

Question: In Year 1, Stock to the Hand, Inc., issued 40,000 shares of the 400,000 shares of $0.20 par value common stock it is allowed to sell. The total received from issuing its common stock is $400,000. Stock to the Hand bought back 4,000 shares of its stock at a cost of $14 each. It also declared and paid a $0.40 per share dividend to its common shareholders. Stock to the Hand has no preferred stock. What is the number of shares issued?

Answer: 40000

Question: Paid-in Capital in Excess of Par of $1,000,000 is found in the ______ section of the ______.a. retained earnings; income statementb. retained earnings; balance sheetc. operating income; income statementd. shareholders' equity; balance sheet

Answer: D

Question: The purchase of treasury stock ______.a. increases one asset and decreases another assetb. increases total assets and increases total shareholders' equityc. decreases total assets and decreases shareholders' equityd. has no effect on total assets, total liabilities, or total shareholders' equitye. decreases total assets and increases total shareholders' equity

Answer: C

Question: A corporation has 200,000 shares of stock authorized, 80,000 shares issued and 70,000 shares outstanding. Which of the following statements is TRUE?a. 200,000 shares have been sold.b. There are 70,000 shares of treasury stock.c. There are 80,000 shares of treasury stock.d. There are 10,000 shares of treasury stock.

Answer: D

Question: At December 31, Year 1, Stock to the Hand, Inc.'s, assets were $250,000 and liabilities were $150,000. At December 31, Year 2, Stock to the Hand's assets were $320,000 and liabilities were $200,000. During Year 2, Stock to the Hand's revenues were $88,000 and expenses were $45,000. No new stock was issued. Dividends for December 31, Year 2, on the statement of shareholders' equity equals $_______.

Answer: 23000