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Exam 8: Proprietorships, partnerships, and Corporations

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Question 31

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What are the characteristics of preferred stock?

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Preferred stock generally does not carry...

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Question 32

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Articles of incorporation,prepared by a business that wishes to incorporate,normally include the corporation's name and purpose,its location,and provisions for capital stock.

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Question 33

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What kind of transaction is the declaration of a stock dividend?

Which of the following would not be a reason for the market price of Bishop Corporation stock to decrease?

All corporations are subject to extensive government regulation.

When a company purchases treasury stock:

The term "Retained Earnings" is best explained by which of the following statements?

Hill Country Corporation has 90,000 shares of $10 par value common stock issued and outstanding.If Hill Country Corporation issued a 2-for-1 stock split,what dollar amount would be shown for common stock on the balance sheet after the stock split?

Madison Co.paid dividends of $3,000; $6,000; and $10,000 during 2010,2011 and 2012 respectively.The company had 500 shares of preferred stock outstanding with a $10 per share cumulative dividend.The amount of dividends received by the common shareholders during 2012 would be:

In which section of the balance sheet would Treasury Stock be reported?

On February 2,2012,Barker's Pool Supply Corporation issued 900 shares of no-par stock for $7 per share.Within two hours of the issue,the stock's price jumped on the UMSL stock exchange to $11 per share.Which of the following answers describes the effect of the February 2,2012 transaction?

On July 1,2012,Gustafson Company appropriated retained earnings in the amount of $18,000 for a future remodeling project.On June 30,2012,the balance of Retained Earnings was $41,400 and the Cash balance was $21,600.Which of the following answers shows the effect of the appropriation of retained earnings on the financial statements?

The Harlan-Wells Company was started on January 1,2012 as a partnership.The initial investments from the two partners were $20,000 each.During 2012,the Harlan-Wells Company earned $30,000 in cash revenue and paid $20,000 in cash expenses and the partners withdrew $1,000 each for their personal use.The partnership agreement calls for equal sharing of net income or loss.Using only the above information,prepare an income statement,a capital statement,and a balance sheet for the Harlan-Wells Company.

Which answer would represent the financial statement presentation of stockholders equity after the following transactions? Issued 200 shares of $12 par value common stock for $25 a share.Five hundred shares are authorized.Purchased 75 shares of treasury stock at $22 a share.

Flynn Company issued 2,000 shares of $10 par value common stock at a market price of $16.As a result of this accounting event,total paid-in capital would

A partner is responsible for (liable for)his/her own actions and also for actions taken by another partner on behalf of the partnership.

Indicate how each of the following transactions affects the financial statements model,below: a)Issued 40,000 shares of common stock with a $20 par value for cash of $25 per share. b)Purchased 400 shares of treasury stock (common stock)at $30 per share. c)Resold 100 shares of the treasury stock at $35 per share.

What is meant by "double taxation?" Which form of business organization is subject to double taxation?

Bridge Corporation issued a 15% stock dividend on 20,000 outstanding shares of $10 stated value common stock.The distribution was made at the time the market value of the stock was $50 a share.How did this transaction affect the company's total stockholders' equity?

One consequence of the Sarbanes-Oxley Act is that some of the largest corporations in the United States are taking their companies' stock off the stock exchanges.