ACCT 2300 Final Exam TTU with all Correct & 100%
Verified Answers |Latest Version |Already Graded A+
The two main categories of stockholders' equity are ✔Correct Answer-retained earnings and paid
in capital
Which of the following is not considered to be an advantage of a corporation? ✔Correct Answer-
Double taxation
Stockholders of a corporation directly elect the ✔Correct Answer-board of directors
Which of the following is a characteristic of a corporation? ✔Correct Answer-Limited liability of
stockholders
The basic form of capital stock is ✔Correct Answer-a share of common stock
Preferred stock is least likely to have which of the following characteristics? ✔Correct Answer-
Preference as to voting
The par value of a share of common stock ✔Correct Answer-is stated in the charter.
What is the total paid-in capital for Century Company at March 31, 2019? ✔Correct Answer-
Common stock + Paid-in capital= Total paid in capital
68 Million+ 340 Million= 408 Million
If a corporation issues 3,000 shares of $2.40 par value common stock for $27,000, the journal entry
would include a credit to ✔Correct Answer-Number of Shares x Par Value = Par value of CS
3,000 shares x $2.40 Par = 7,200 to Common Stock
Best Player, Inc., issued 300,000 shares of no-par common stock for $15 per share. The journal entry
to record the issuance would be ✔Correct Answer-Debit Cash 4,500,000
Credit Common Stock 4,500,00
Which of the following classifications represents the most shares of common stock? ✔Correct
Answer-Authorized shares
What is total paid-in capital for Sportaid? (Assume that treasury stock does not reduce total paid-in
capital.) ✔Correct Answer-Common Stock + Preferred Stock + APIC = Total Paid in capital
311,000 + 80,000 + 200,000 = 591,000
A company might purchase treasury stock for all of the following reasons except ✔Correct Answer-
management wants to decrease the earnings per share of common stock.
, Sloan Corporation purchased 3,600 shares of its own $0.25 par value common stock for $120,000. As
a result of this transaction, the company's stockholders' equity ✔Correct Answer-decreased by
$120,000.
Goodall Corporation issued 95,000 shares of $1.20 par value common stock. Later that year, Goodall
purchased 8,000 shares of its own common stock. Two months later, it reissued 2,600 shares. How
many shares are issued and outstanding? ✔Correct Answer-95,000 issued and 89,600 outstanding
Cat Tail Corporation paid $26 per share to purchase 400 shares of its common stock as treasury
stock. The stock was originally issued at $13 per share. Which of the following would be the journal
entry that Cat Tail would make to record the purchase of the treasury stock? ✔Correct Answer-
Debit Treasury 10,400
Credit Cash 10,400
When treasury stock is sold for less than its cost, the entry should include a debit to ✔Correct
Answer-Gain on Sale of Treasury Stock.
How does the declaration of a cash dividend affect a company's assets, liabilities, and equity?
✔Correct Answer-It results in an increase to liabilities and a decrease to stockholders' equity, while
assets remain the same
For cash dividends, the journal entry on the date of record ✔Correct Answer-No journal entry is
required on the date of record.
A stock split ✔Correct Answer-has no effect on total stockholders' equity.
Stockholders are eligible for a dividend if they own the stock on the date of ✔Correct Answer-
record
Anna's Foods has outstanding 500 shares of 99% preferred stock, $100 par value; and 1,600 shares of
common stock, $10 par value. Anna's declares dividends of $16,900. Which of the following is the
correct entry? ✔Correct Answer-Debit Retained Earnings 16,900
Credit Common Stock- Preferred 4,500
Credit Common Stock- Common 12,400
A corporation has 25,000 shares of 16% preferred stock outstanding. Also, there are 25 comma
25,000 shares of common stock outstanding. Par value for each is $100. If a $650,000 dividend is
paid, how much goes to the preferred stockholders? ✔Correct Answer-400,000
A corporation has 50,000 shares of 1% preferred stock outstanding. Also, there are 50,000 shares of
common stock outstanding. Par value for each is $100. If a $600,000 dividend is paid, what is the
amount of dividends per share on common stock? ✔Correct Answer-$11.00
A company declares a 5% stock dividend. The debit to Retained Earnings is an amount equal to
✔Correct Answer-the market value of the shares to be issued
Which of the following statements is not true about a 3-for-1 stock split? ✔Correct Answer-Total
stockholders' equity increases.
Verified Answers |Latest Version |Already Graded A+
The two main categories of stockholders' equity are ✔Correct Answer-retained earnings and paid
in capital
Which of the following is not considered to be an advantage of a corporation? ✔Correct Answer-
Double taxation
Stockholders of a corporation directly elect the ✔Correct Answer-board of directors
Which of the following is a characteristic of a corporation? ✔Correct Answer-Limited liability of
stockholders
The basic form of capital stock is ✔Correct Answer-a share of common stock
Preferred stock is least likely to have which of the following characteristics? ✔Correct Answer-
Preference as to voting
The par value of a share of common stock ✔Correct Answer-is stated in the charter.
What is the total paid-in capital for Century Company at March 31, 2019? ✔Correct Answer-
Common stock + Paid-in capital= Total paid in capital
68 Million+ 340 Million= 408 Million
If a corporation issues 3,000 shares of $2.40 par value common stock for $27,000, the journal entry
would include a credit to ✔Correct Answer-Number of Shares x Par Value = Par value of CS
3,000 shares x $2.40 Par = 7,200 to Common Stock
Best Player, Inc., issued 300,000 shares of no-par common stock for $15 per share. The journal entry
to record the issuance would be ✔Correct Answer-Debit Cash 4,500,000
Credit Common Stock 4,500,00
Which of the following classifications represents the most shares of common stock? ✔Correct
Answer-Authorized shares
What is total paid-in capital for Sportaid? (Assume that treasury stock does not reduce total paid-in
capital.) ✔Correct Answer-Common Stock + Preferred Stock + APIC = Total Paid in capital
311,000 + 80,000 + 200,000 = 591,000
A company might purchase treasury stock for all of the following reasons except ✔Correct Answer-
management wants to decrease the earnings per share of common stock.
, Sloan Corporation purchased 3,600 shares of its own $0.25 par value common stock for $120,000. As
a result of this transaction, the company's stockholders' equity ✔Correct Answer-decreased by
$120,000.
Goodall Corporation issued 95,000 shares of $1.20 par value common stock. Later that year, Goodall
purchased 8,000 shares of its own common stock. Two months later, it reissued 2,600 shares. How
many shares are issued and outstanding? ✔Correct Answer-95,000 issued and 89,600 outstanding
Cat Tail Corporation paid $26 per share to purchase 400 shares of its common stock as treasury
stock. The stock was originally issued at $13 per share. Which of the following would be the journal
entry that Cat Tail would make to record the purchase of the treasury stock? ✔Correct Answer-
Debit Treasury 10,400
Credit Cash 10,400
When treasury stock is sold for less than its cost, the entry should include a debit to ✔Correct
Answer-Gain on Sale of Treasury Stock.
How does the declaration of a cash dividend affect a company's assets, liabilities, and equity?
✔Correct Answer-It results in an increase to liabilities and a decrease to stockholders' equity, while
assets remain the same
For cash dividends, the journal entry on the date of record ✔Correct Answer-No journal entry is
required on the date of record.
A stock split ✔Correct Answer-has no effect on total stockholders' equity.
Stockholders are eligible for a dividend if they own the stock on the date of ✔Correct Answer-
record
Anna's Foods has outstanding 500 shares of 99% preferred stock, $100 par value; and 1,600 shares of
common stock, $10 par value. Anna's declares dividends of $16,900. Which of the following is the
correct entry? ✔Correct Answer-Debit Retained Earnings 16,900
Credit Common Stock- Preferred 4,500
Credit Common Stock- Common 12,400
A corporation has 25,000 shares of 16% preferred stock outstanding. Also, there are 25 comma
25,000 shares of common stock outstanding. Par value for each is $100. If a $650,000 dividend is
paid, how much goes to the preferred stockholders? ✔Correct Answer-400,000
A corporation has 50,000 shares of 1% preferred stock outstanding. Also, there are 50,000 shares of
common stock outstanding. Par value for each is $100. If a $600,000 dividend is paid, what is the
amount of dividends per share on common stock? ✔Correct Answer-$11.00
A company declares a 5% stock dividend. The debit to Retained Earnings is an amount equal to
✔Correct Answer-the market value of the shares to be issued
Which of the following statements is not true about a 3-for-1 stock split? ✔Correct Answer-Total
stockholders' equity increases.
