Which of the following represents the maximum number of shares a corporation can issue?

Question 24 Which of the following represents the maximum number of shares of stock issuable to the public?

Authorized shares
Issued shares
Outstanding shares
Treasury shares
7 points    Question 25 Irish Corporation issued (sold) 10,000 shares of its no par common stock for $70 per share. The bylaws established a stated value of $10 per share. The transaction would increase the common stock account on the balance sheet by how much?
$0
$600,000
$100,000
$700,000
7 points    Question 26 On December 15, 2009, the board of directors of Cross Corporation declared a cash dividend, payable on January 8, 2010 of $.80 per share on the 2,000,000 common shares outstanding. On December 15, 2009, Cross Corporation should
not prepare a journal entry because the event had no effect on the corporation’s financial position until 2010.
decrease retained earnings $1.6 million and increase expenses $1.6 million.
decrease retained earnings $1.6 million and increase liabilities by $1.6 million.
decrease cash $1.6 million and decrease retained earnings $1.6 million.
7 points    Question 27 Which of the following statements doesn’t correctly describe preferred stock?
Preferred shareholders have a preference with respect to dividend payments.
Preferred shareholders have a preference with respect to assets in the event of liquidation.
Preferred shareholders have voting rights on a per share basis.
Preferred stock typically has a fixed dividend rate.
7 points    Question 28 CBA Company reported total stockholders’ equity of $85,000 on its balance sheet dated December 31, 2010. During the year ended December 31, 2011, CBA reported net income of $10,000, declared and paid a cash dividend of $2,000, and issued additional common stock for $20,000. What is total stockholders’ equity as of December 31, 2011?
$117,000
$113,000
$109,000
$101,000
7 points    Question 29 A corporation has $80,000 in total assets, $36,000 in total liabilities, and a $12,000 debit balance in retained earnings. What is the balance in the contributed capital account?
$ 56,000
$ 44,000
$ 48,000
$31,500
7 points    Question 30 The Pioneer Company has provided the following account balances:
Cash $38,000;
Short-term investments $4,000;
Accounts receivable $6,000;
Inventory $48,000;
Long-term notes receivable $2,000;
Equipment $96,000;
Factory Building $180,000;
Intangible assets $6,000;
Accounts payable $30,000;
Accrued liabilities payable $4,000;
Short-term notes payable $14,000;
Long-term notes payable $92,000;
Contributed capital $180,000;
Retained earnings $60,000.
What are Pioneer’s total current liabilities?
$44,000
$34,000
$48,000
$140,000

Answer

24. Authorized shares is the maximum number of shares can issuable to public 25. $100,000 will increase in common stock account. Balance $600,000 will incrase in additional paid in capital account 26. Journal entry to Declare cash dividend is:
Retained earnings 1.6 Million
Dividend payable 1.6 Million
Answer is:decrease retained earnings $1.6 million and increase liabilities by $1.6 million. 27. Preferred share holders will not have voting rights. 28.
Beginning balance $    85,000
Add: Net income $    10,000
Less: Dividend $    (2,000)
Add: Issued additional stock $    20,000
Ending Balance $ 113,000
29.
Total assets $   80,000
Less: Liabilities $ (36,000)
Add: Debit balance Retained earnings $   12,000
Contributed capital $   56,000
30.
Accounts payable $ 30,000
Accrued liabilities payable $    4,000
Short term notes payable $ 14,000
Current liabilities $ 48,000

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