Chapter 12

The officer who is generally responsible for maintaining the cash position of the corporation is the

• controller.

• treasurer.

• cashier.

• internal auditor.

The ability of a corporation to obtain capital is

• enhanced because of limited liability and ease of share transferability.

• less than a partnership.

• restricted because of the limited life of the corporation.

• about the same as a partnership.

Simon Company issued 3,000 ordinary shares with a €5 par value in payment of its attorney's bill of €60,000. The bill was for services performed in helping the company incorporate. Simon should record this transaction by debiting

• Legal Expense for €15,000.

• Legal Expense for €60,000.

• Organization Expense for €15,000.

• Organization Expense for €60,000.

King George Company was authorized to issue 100,000 ordinary shares. The company issued 54,000 shares and later purchased 10,000 treasury shares. The number of outstanding ordinary shares is

• 90,000.

• 46,000.

• 54,000.

• 44,000.

Richard Company paid £46,000 to buy 8,000 shares of its £6 par value ordinary shares for distribution in an executive compensation plan. The stock was originally sold for £50,000. The entry to record the purchase includes a

• debit to Treasury Shares for £46,000.

• credit to Retained Earnings for £6,000.

• debit to Share Premium-Ordinary for £4,000.

• credit to Share Capital-Ordinary for £48,000.

Looper, Inc. has 25,000 shares of 5%, ₤100 par value, noncumulative preference shares and 50,000 ordinary shares with a ₤1 par value outstanding at December 31, 2024. There were no dividends declared in 2023. The board of directors declares and pays ₤300,000 in dividends in 2024. What amount of dividends are received by the common shareholders in 2024?

• ₤0

• ₤125,000

• ₤300,000

• ₤175,000