1 Role Of Accounting In Society 2 Introduction To Financial Statements 3 Analyzing And Recording Transactions 4 The Adjustment Process 5 Completing The Accounting Cycle 6 Merchandising Transactions 7 Accounting Information Systems 8 Fraud, Internal Controls, And Cash 9 Accounting For Receivables 10 Inventory 11 Long-term Assets 12 Current Liabilities 13 Long-term Liabilities 14 Corporation Accounting 15 Partnership Accounting 16 Statement Of Cash Flows Chapter14: Corporation Accounting
Chapter Questions Section: Chapter Questions
Problem 1MC: Which of the following is not a characteristic that sets preferred stock apart from common stock? A.... Problem 2MC: Issued stock is defined as stock that ________. A. is available for sale B. that is held by the... Problem 3MC: Your friend is considering incorporating and asks for advice. Which of the following is not a major... Problem 4MC: Par value of a stock refers to the ________. A. issue price of a stock B. value assigned by the... Problem 5MC: Which of the following is not one of the five primary responsibilities of the Securities and... Problem 6MC: When a C corporation has only one class of stock it is referred to as ________. A. stated value... Problem 7MC: The number of shares that a corporations incorporation documents allows it to sell is referred to as... Problem 8MC: The total amount of cash and other assets received by a corporation from the stockholders in... Problem 9MC: Stock can be issued for all except which of the following? A. accounts payable B. state income tax... Problem 10MC: A company issued 40 shares of $1 par value common stock for $5,000. The journal entry to record the... Problem 11MC: A company issued 30 shares of $.50 par value common stock for $12,000. The credit to additional... Problem 12MC: A corporation issued 100 shares of $100 par value preferred stock for $150 per share. The resulting... Problem 13MC: The date the board of directors votes to declare and pay a cash dividend is called the: A. date of... Problem 14MC: Which of the following is true of a stock dividend? A. It is a liability. B. The decision to issue a... Problem 15MC: Stockholders equity consists of which of the following? A. bonds payable B. retained earnings and... Problem 16MC: Retained earnings is accurately described by all except which of the following statements? A.... Problem 17MC: If a companys board of directors designates a portion of earnings for a particular purpose due to... Problem 18MC: Corrections of errors that occurred on a previous periods financial statements are called ________.... Problem 19MC: Owners equity represents which of the following? A. the amount of funding the company has from... Problem 20MC: Which of the following is a measurement of earnings that represents the profit before interest,... Problem 21MC: Which of the following measures the portion of a corporations profit allocated to each outstanding... Problem 22MC: The measurement of earnings concept that consists of a companys profit from operations after taxed... Problem 23MC: The correct formula for the calculation of earnings per share is ________. A. B. C. D. Problem 24MC: Most analysts believe which of the following is true about EPS? A. Consistent improvement in EPS... Problem 1Q: Your corporation needs additional capital to fund an expansion. Discuss the advantages and... Problem 2Q: How many shares of stock should your new corporation authorize? How did you arrive at your number? Problem 3Q: What factors should a new company consider in deciding in which state to incorporate? Problem 4Q: What are some of the reasons a business owner might choose the corporate form of business? Problem 5Q: Why would a company repurchase its own stock? Problem 6Q: The following data was reported by Saturday Corporation: Authorized shares: 30,000 Issued shares:... Problem 7Q: A corporation issues 6,000 shares of $1 par value stock for a parcel of land valued at $12,000.... Problem 8Q: When corporations issue stock in exchange for professional services, what account(s) should be... Problem 9Q: A corporation issues 5,000 shares of $1 par value stock for some equipment with a clearly determined... Problem 10Q: On April 2, West Company declared a cash dividend of $0.50 per share. There are 50,000 shares... Problem 12Q: When does a corporation incur a liability for a dividend? Problem 13Q: How does a stock split affect the balance sheet of a corporation? Problem 14Q: Your friend has questions about retained earnings and dividends. How do you explain to him that... Problem 15Q: What does owners equity mean for the owner? Problem 16Q: What types of transactions reduce owners equity? What types of transactions reduce retained... Problem 17Q: Sometimes financial statements contain errors. What type of liabilities may need correction as a... Problem 18Q: Retained earnings may be restricted or appropriated. Explain the difference between the two and give... Problem 19Q: Which financial statements do you need to calculate EPS? Problem 20Q: Where is EPS disclosed for publicly traded companies? Problem 21Q: Should investors rely on EPS as an investing tool? Why or why not? Problem 22Q: What information do you need to calculate the weighted average common shares outstanding? Problem 23Q: Which is the only ratio required to be reported on the face of a companys financial statements? What... Problem 1EA: You are an accountant working for a company that has recently decided to incorporate. The company... Problem 2EA: What is the impact on stockholders equity when a company uses debt financing as a source of funding? Problem 3EA: What is the most obvious difference between debt and equity financing? Problem 4EA: How do creditors assess risk when lending funds to a company? Problem 5EA: Fortuna Company is authorized to issue 1,000,000 shares of $1 par value common stock. In its first... Problem 6EA: James Incorporated is authorized to issue 5,000,000 shares of $1 par value common stock. In its... Problem 7EA: McVie Corporations stock has a par value of $2. The company has the following transactions during... Problem 8EA: Anslo Fabricating, Inc. is authorized to issue 10,000,000 shares of $5 stated value common stock.... Problem 9EA: St. Marie Company is authorized to issue 1,000,000 shares of $5 par value preferred stock, and... Problem 10EA: Nutritious Pet Food Companys board of directors declares a cash dividend of $1.00 per common share... Problem 11EA: Nutritious Pet Food Companys board of directors declares a cash dividend of $1.00 per common share... Problem 12EA: Nutritious Pet Food Companys board of directors declares a cash dividend of $5,000 on June 30. At... Problem 13EA: Nutritious Pet Food Companys board of directors declares a small stock dividend (20%) on June 30... Problem 14EA: Blanket Company has paid quarterly dividends every quarter for the past 15 years. Lately, slowing... Problem 15EA: Farmington Corporation began the year with a retained earnings balance of $20,000. The company paid... Problem 16EA: Montana Incorporated began the year with a retained earnings balance of $50,000. The company paid a... Problem 17EA: Jesse and Mason Fabricating, Inc. general ledger has the following account balances at the end of... Problem 18EA: Roxannes Delightful Candies, Inc. began the year with a retained earnings balance of $45,000. The... Problem 19EA: Jupiter Corporation earned net income of $90,000 this year. The company began the year with 600... Problem 20EA: Longmont Corporation earned net income of $90,000 this year. The company began the year with 600... Problem 21EA: James Corporation earned net income of $90,000 this year. The company began the year with 600 shares... Problem 1EB: Your high school friend started a business that has blossomed over the years, and she is considering... Problem 2EB: You are an accountant working for a manufacturing company that makes personal care products and has... Problem 3EB: What is the impact on stockholders equity when a company uses equity financing as a source of... Problem 4EB: What is the biggest disadvantage to be considered when exploring the option of equity financing... Problem 5EB: Your high school friend started a business that has blossomed over the years, and he is considering... Problem 6EB: Spring Company is authorized to issue 500,000 shares of $2 par value common stock. In its first... Problem 7EB: Silva Company is authorized to issue 5,000,000 shares of $2 par value common stock. In its IPO, the... Problem 8EB: Juniper Company is authorized to issue 5,000,000 shares of $2 par value common stock. In conjunction... Problem 9EB: Vishnu Company is authorized to issue 500,000 shares of $2 par value common stock. In conjunction... Problem 10EB: Ammon Company is authorized to issue 500,000 shares of $5 par value preferred stock. In its first... Problem 11EB: Nutritious Pet Food Companys board of directors declares a small stock dividend (20%) on June 30... Problem 12EB: Nutritious Pet Food Companys board of directors declares a large stock dividend (50%) on June 30... Problem 13EB: Nutritious Pet Food Companys board of directors declares a large stock dividend (50%) on June 30... Problem 14EB: Nutritious Pet Food Companys board of directors declares a 2-for-1 stock split on June 30 when the... Problem 15EB: Nutritious Pet Food Companys board of directors declares a 2-for-1 stock split on June 30 when the... Problem 16EB: Birmingham Company has been in business for five years. Last year, it experienced rapid growth and... Problem 17EB: Chelsea Company is a sole proprietorship. Ashley, Incorporated is a corporation. Which company would... Problem 18EB: Tart Restaurant Holdings, Incorporated began the year with a retained earnings balance of $950,000.... Problem 19EB: Josue Fabricating, Inc.s accountant has the following information available to prepare the Statement... Problem 20EB: Trumpet and Trombone Manufacturing, Inc. began the year with a retained earnings balance of... Problem 21EB: Brunleigh Corporation earned net income of $200,000 this year. The company began the year with... Problem 22EB: Errol Corporation earned net income of $200,000 this year. The company began the year with 10,000... Problem 23EB: Bastion Corporation earned net income of $200,000 this year. The company began the year with 10,000... Problem 1PA: You are a CPA who has been hired by DEF Company to assist with their initial public offering.... Problem 2PA: You are a CPA who has been hired by DEF Company to assist with their incorporation process. Prepare... Problem 3PA: You are a CPA who has been hired by DEF Company to assist with their initial public offering.... Problem 4PA: Wingra Corporation was organized in March. It is authorized to issue 500,000 shares of $100 par... Problem 5PA: Copper Corporation was organized in May. It is authorized to issue 50,000,000 shares of $200 par... Problem 6PA: EllaJane Corporation was organized several years ago and was authorized to issue 4,000,000 shares of... Problem 7PA: Aggregate Mining Corporation was incorporated five years ago. It is authorized to issue 500,000... Problem 8PA: Aggregate Mining Corporation was incorporated five years ago. It is authorized to issue 500,000... Problem 9PA: Aggregate Mining Corporation was incorporated five years ago. It is authorized to issue 500,000... Problem 10PA: The board of directors is interested in investing in a new technology. Appropriating existing... Problem 11PA: You are a consultant for several emerging, high-growth technology firms that were started locally... Problem 12PA: You are the accountant for Kamal Fabricating, Inc. and you oversee the preparation of financial... Problem 14PA: You are a consultant working with various companies that are considering incorporating and listing... Problem 1PB: You are the president of Duke Company and are leading the company through the process of... Problem 2PB: You are the president of Duke Company and are leading the company through the process of... Problem 3PB: Autumn Corporation was organized in August. It is authorized to issue 100,000 shares of $100 par... Problem 4PB: MacKenzie Mining Corporation is authorized to issue 50,000 shares of $500 par value 7% preferred... Problem 5PB: Paydirt Limestone, Incorporated was organized several years ago and was authorized to issue... Problem 6PB: Tent Tarp Corporation is a manufacturer of outdoor camping equipment. The company was incorporated... Problem 7PB: Tent Tarp Corporation is a manufacturer of outdoor camping equipment. The company was incorporated... Problem 8PB: Tent Tarp Corporation is a manufacturer of outdoor camping equipment. The company was incorporated... Problem 9PB: You are a CPA working with sole proprietors. Several of your clients are considering incorporating... Problem 10PB: You are a consultant for several emerging, high growth technology firms that were started locally... Problem 11PB: You are the accountant for Trumpet and Trombone Manufacturing, Inc. and you oversee the preparation... Problem 12PB: You have some funds that you would like to invest and you are relying heavily on the EPS calculation... Problem 13PB: You are a consultant working with various companies that are considering incorporating and listing... Problem 1TP: Your bakery is incorporated and is looking for investors. Write a one paragraph story of why... Problem 2TP: Do some research: why did Facebook choose to reincorporate in Delaware? Problem 3TP: Do some research: why is Comcast incorporated in Pennsylvania? Problem 4TP: On November 7, 2013, Twitter released its initial public offering (IPO) priced at $26 per share.... Problem 5TP: Research online to find a company that bought back shares of its own stock (treasury stock) within... Problem 6TP: As a bakery business continues to grow, cash flow has become more of a concern. The board of... Problem 7TP: Use the internet to find a company that declared a stock split within the last 1–2 years. Why did... Problem 8TP: Use the internet to find a publicly-held companys annual report. Locate the section reporting... Problem 9TP: Use the internet to find a publicly-held companys annual report. Locate the section that comments on... Problem 5EA: Fortuna Company is authorized to issue 1,000,000 shares of $1 par value common stock. In its first...
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Nebraska Inc. issues 3,000 shares of common stock for $45,000. The stock has a par value of $10 per share. The journal entry to record the stock issuance would include a credit to Common Stock for:
Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.
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