When no-par stock is issued quizlet
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Hise Inc., has 4,000 shares of 9%, $100 par value, cumulative preferred stock and 200,000 shares of $1 par value common stock outstanding at December 31, 2014, and December 31, 2013. The board of directors declared and paid a $25,000 dividend in 2013. In 2014, $74,000 of dividends are declared and paid. What are the dividends received by the preferred stockholders in 2014? A. $11,000 McCaffrey Corporation owned 15,000 shares of Harper Corporation's $5 par value common stock. These shares were purchased in 2010 for $326,000. On May 4, 2014, McCaffrey declared a property dividend of one share of Harper for every twenty shares of McCaffrey stock held by a stockholder. On that date, when the market price of Harper was $34 per share, there were 280,000 shares of McCaffrey outstanding. What net reduction in retained earnings would result from this property dividend? A. $150,000 On October 31, 2014, Lexington Corp. declared and issued a 12% common stock dividend. Prior to this dividend, Lexington had 302,000 shares of $.001 par value common stock issued and outstanding. The fair value of Lexington's common stock was $16.75 per share on October 31, 2014. As a result of this stock dividend, the company's total stockholders' equity A. increased by
$302,000. Terpsichore Inc., has 1,000 shares of 5%, $100 par value, cumulative preferred stock and 200,000 shares of $1 par value common stock outstanding at December 31, 2014, and December 31, 2013. No dividends were paid in 2013. In 2014, $75,000 of dividends are declared and paid. If the preferred stock is nonparticipating, what are the dividends received by the preferred stockholders in 2014? A. $5,000. On April 1, Year 1, Jetter Corporation reacquired 2,000 shares of its own $10 par stock for $120,000 cash. On October 15, Year 1, 600 of the treasury shares were reissued at a price of $65 per share. Assuming there are no further transactions involving treasury stock in Year 1, the financial statements of Jetter Corporation for Year 1 will show: A) Treasury Stock of $81,000 among the assets in the balance sheet. B) Gain on Sale of Treasury Stock of $3,000 in the income statement for Year 1. C) Treasury Stock of $120,000 as a deduction in the stockholders' equity section of the December 31, Year 1, balance sheet. D) Additional Paid-In Capital: Treasury Stock Transactions of $3,000 in the December 31, Year 1 balance sheet. On April 1, Year 1, Jetter Corporation reacquired 2,000 shares of its own $10 par stock for $120,000 cash. On October 15, Year 1, 600 of the treasury shares were reissued at a price of $65 per share. The reacquisition of the 2,000 shares on April 1, Year 1, causes: A) No change in total assets of Jetter Corporation. B) No change in the number of shares of Jetter Corporation stock outstanding. C) A reduction in total assets and in total stockholders' equity of Jetter Corporation. D) Jetter Corporation to show a new asset, "Treasury Stock", for $120,000. On January 1, Year 1, Juniper Corporation issued 60,000 shares of its total 200,000 authorized shares of $4 par value common stock for $8 per share. On December 31, Year 1, Juniper Corporation's common stock is trading at $12 per share. Assume Juniper Corporation decides to issue an additional 1,000 shares of its common stock on December 31, Year 1. How will the above increase in value affect Juniper? A) Juniper can issue the 1,000 shares at a higher price than the initial 60,000 shares. B) Juniper can sell the 1,000 shares for $12 each, as well as collect an additional $4 per share for each of the 60,000 shares sold initially. C) Juniper reports a gain of $4 per share on all stock sold during the year. D) Paid-in capital at the end of Year 1 will be $732,000 (i.e., 61,000 shares times $12 per share). Century Corporation issued 400,000 shares of $4 par value common stock at the time of its incorporation. The stock was issued for cash at a price of $16 per share. During the first year of operations, the company sustained a net loss of $100,000. The year-end balance sheet would show the balance of the Common Stock account to be: A) $1,600,000. B) $1,500,000. C) $6,300,000. D) $6,400,000. Recommended textbook solutions
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When noIf no-par stock is issued, then Common Stock or Preferred Stock is CREDITED for the number of shares × stated value of each share of stock if given OR number of shares × market price per share at the time the shares were issued. 3. Paid in Capital in Excess of Par is CREDITED for the amount received above par.
When noWhen no-par common stock with a stated value is issued for cash, the common stock account is credited for an amount equal to the cash proceeds. The par value of common stock must always be equal to its market value on the date the stock is issued.
Which account would be credited in a journal entry for issuing noThe accounting entry for a no-par-value stock will be a debit to the cash account and credit to the common stock account within shareholder's equity.
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