College Acct 1- Chapter 11

Front

Par value of a stock refers to:

Back

Value assigned per share by the corporate charter

Front

When a corporation issues additional shares to its existing shareholders without any monetary exchange, it is referred to as:

Back

Stock dividend

Front

A corporation issued 4,000 shares of its $5 par value common stock in exchange for land that has a market value of $75,000. The entry to record this transaction would include:

Back

A credit to Paid-in Capital in Excess of Par Value, Common Stock for $55,000

Front

A liability for dividends exists:

Back

On the date of declaration

Front

A corporation issued 6,000 shares of $10 par value common stock in exchange for some land with a market value of $65,000. The entry to record this exchange is:

Back

Debit Land $65,000; credit Common Stock $60,000; credit Paid-In Capital in Excess of Par Value, Common Stock $5,000.

Front

Treasury Stock is classified as: A contra asset account, A contra equity account, An asset account, A liability account

Back

A contra equity account

Front

Which of the following is a primary duty of the board of directors in a corporation?
Options:
Managing the daily operations of the business.
Overseeing the overall direction and strategy of the corporation.
Handling the corporation's financial transactions directly.
Ensuring all employees adhere to company policies.

Back

Overseeing the overall direction and strategy of the corporation.

Front

Stockholders' equity consists of the following: Paid-in capital and retained earnings, Long-term assets, Paid-in capital and par value, Retained earnings and cash

Back

Paid-in capital and retained earnings

Front

Stock that was reacquired and is still held by the issuing corporation is called:

Back

Treasury stock

Front

Hutter Corporation declared a $1.00 per share cash dividend on its common shares. The company has 20,000 shares authorized, 9,000 shares issued, and 8,000 shares of common stock outstanding. The journal entry to record the dividend declaration is:

Back

Debit Retained Earnings $8,000; credit Common Dividends Payable $8,000.