7. the charter of a corporation provides for the insurance of 100000 shares of c
ID: 2599590 • Letter: 7
Question
7. the charter of a corporation provides for the insurance of 100000 shares of common stock assume that 60000 shares were originally issued and 10,000 were subsequently reacquired what is the number shares outstanding?
A. $10,000
B. $70,000
C. $60,000
D. $50,000
8. the major rights that accompany ownership of a common stock include all of the following except the right to?
A. vote in matters concerning the corporation
B. vote the assets of the company
C. share in assets upon liquidation
D. share in the distribution of earnings
10. all of the following are conditions for a cash dividend except?
A. sufficient cash
B. sufficient retained earnings
C. formal action by the board of directors
D. all of these choices are correct
11. Luke Enterprises has 300,000 shares of $20 par common stock outstanding on January 19th Luke Enterprises declared a 3% stock dividend the market price of the stock on January 19th was $28 per share the journal entry to record the stock dividend would include?
A. accredited stock dividends for 180,000
B. a debit to stock dividends distributable for $252,000
C. a debit to cash for $252,000
D. none of these choices are correct
12. which of the following statements is not true about a 4 for 1 split?
A. par value per share is reduced to one fourth of what it was before the split
B. the market price will probably decrease
C. a stockholder with 10 shares before it split owns 40 shares after the split
D. total contributed Capital increases.
13 which of the following statements is true concerning stock splits
A. the number of shares outstanding has not change after the stock split
B. stock splits required journal entries to be recorded
C each shareholder will all in the same total par amount of stock before and after the split
D none of these choices are correct
14. the stock split applies to
A. issued shares
B. treasury shares
C common shares
D. all of these choices are correct
15. a company with 100000 authorized shares of $4 par common stock issued 40,000 shares at $8 subsequently the company declared a 5% stock dividend on a date when the market price was $11 per share what is the amount transferred from the retained earnings account to the paid-in capital accounts as a result of the stock?
A. $16,000
B $22,000
C. $8,000
D no of thes. Correct
Explanation / Answer
7 Shares outstanding = 60000-10000=50000 8 The major rights that accompany ownership of a common stock include all of the following except the right to use the assets of the company Option B is correct 10 Al of these choices are correct for a cash dividend 11 Stock dividends 252000 =300000*3%*28 Stock dividend distributable 180000 =300000*3%*20 Additional pain in capital 72000 None of these choices are correct 12 Total contributed Capital increases. 13 Each shareholder will all in the same total par amount of stock before and after the split 14 All of these choices are correct 15 Stock dividends 22000 =40000*5%*11 Common stock 16000 =40000*5%*8 Additional paid in capital 6000 The amount transferred from the retained earnings account to the paid-in capital accounts is $22000
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