A corporation\'s distribution of additional shares of its own stock to its stock

Question

A corporation's distribution of additional shares of its own stock to its stockholders without the receipt of any payment in return is called a:
Answer

Stock dividend.

Stock subscription.

Premium on stock.

Discount on stock.

Treasury stock.

1 points
Question 2


Stockholders' equity consists of:
Answer

Long-term assets.

Paid-in capital and retained earnings.

Paid-in capital and par value.

Retained earnings and cash.

Premiums and discounts.

1 points
Question 3


Xtreme Sports has $100,000 of 8% noncumulative, nonparticipating, preferred stock outstanding. Xtreme Sports also has $500,000 of common stock outstanding. In the company's first year of operation, no dividends were paid. During the second year, Xtreme Sports paid cash dividends of $30,000. This dividend should be distributed as follows:
Answer

$8,000 preferred; $22,000 common.

$16,000 preferred; $14,000 common.

$7,500 preferred; $22,500 common.

$15,000 preferred; $15,000 common.

$0 preferred; $30,000 common.

1 points
Question 4


A company issued 7% preferred stock with a $100 par value. This means that:
Answer

Preferred shareholders have a guaranteed dividend.

The amount of the potential dividend is $7 per year per preferred share.

Preferred shareholders are entitled to 7% of the annual income.

The market price per share will approximate $100 per share.

Only 7% of the total paid-in capital can be preferred stock.

1 points
Question 5


A company has 1,000 shares of $50 par value, 4.5% cumulative and nonparticipating preferred stock and 10,000 shares of $10 par value common stock outstanding. The company paid total cash dividends of $1,000 in its first year of operation. The cash dividend that must be paid to preferred stockholders in the second year before any dividend is paid to common stockholders is:
Answer

$1,000.

$1,250.

$2,250.

$3,500.

$4,500.

1 points
Question 6


A company issued 60 shares of $100 par value stock for $7,000 cash. The total amount of paid-in capital in excess of par is:
Answer

$ 100.

$ 600.

$1,000.

$6,000.

$7,000.

1 points
Question 7


On September 1, a corporation had 50,000 shares of $5 par value common stock, and $1,000,000 of retained earnings. On that date, when the market price of the stock is $15 per share, the corporation issues a 2-for-1 stock split. The general journal entry to record this transaction is:
Answer

Picture

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No entry is made for this transaction.

1 points
Question 8


A corporation's minimum legal capital is often defined to be the total par value of the shares:
Answer

Issued.

Authorized.

Subscribed.

Outstanding.

In treasury.

1 points
Question 9


A corporation issued 5,000 shares of $10 par value common stock in exchange for some land with a market value of $60,000. The entry to record this exchange is:
Answer

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Picture

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1 points
Question 10


A company's board of directors votes to declare a cash dividend of 75

Explanation / Answer

Too many qstns..if u need answers for all of them..please split and give! btw..first answer is A (stock dividend) for sure.~ rest..no patience to jst read all them for a single qstn :/

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