Question 1

Prepare a statement of retained earnings in proper form for Gray Corporation for the year ended December 31,20XX,from the following:
 $$\begin{array} { l r } 
\text { Retained Earnings, January } 1,20 \times\times  & \$ 7,700 \
\text { Dividends declared during the year } & 1,400 \
\text { Net income for the year } & 10,000 \
\text { Correction of prior year error, Sales overstated } & 3,000
\end{array}$$

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The answer of Prepare a statement of retained earnings in...

Question 2

Declaration of a cash dividend was recorded by debiting Operations Expense and crediting Cash.This error would cause:

Accepted Answer

A)  the period end assets to be overstated.
B)  the period end net income to be understated.
C)  the period end stockholders' equity to be understated.
D)  None of the above is correct.E) A) and D)
F) C) and D)

Question 3

Common Stock Dividend Distributable is a liability account.

Accepted Answer

A) True 
 B)False

Question 4

Treasury stock is:

Accepted Answer

A)  stock that is issued in a stock dividend.
B)  stock that has been reacquired by the corporation.
C)  previously issued stock that has been canceled.
D)  unissued,but authorized stock.E) A) and C)
F) B) and C)

Question 5

In the dividend process,the liability Dividend Payable is recognized on the:

Accepted Answer

A)  date of declaration.
B)  date of record.
C)  date of payment.
D)  date of stock issue.E) A) and D)
F) None of the above

Question 6

On the date of record,the journal entry would include:

Accepted Answer

A)  a debit to Dividend Payable.
B)  a credit to Dividend Payable.
C)  a credit to Cash.
D)  No entry is required on date of record.E) C) and D)
F) A) and D)

Question 7

Payment of a cash dividend causes:

Accepted Answer

A)  a decrease in liabilities.
B)  an increase in an asset.
C)  an increase in stockholders' equity.
D)  All of the above are correct.E) A) and C)
F) All of the above

Question 8

At the end of the accounting cycle,net income will be closed into:

Accepted Answer

A)  Treasury Stock.
B)  Paid-in Capital.
C)  Cash.
D)  Retained Earnings.E) A) and C)
F) A) and B)

Question 9

Treasury stock was purchased and recorded as an asset.This error would cause:

Accepted Answer

A)  the period end assets to be understated.
B)  the period end liabilities to be overstated.
C)  the period end stockholders' equity to be overstated.
D)  None of the above is correct.E) All of the above
F) None of the above

Question 10

A prior period adjustment would be necessary when:

Accepted Answer

A)  a stock dividend is declared.
B)  a stock dividend is paid.
C)  depreciation expense was understated the prior year.
D)  a cash dividend is declared.E) A) and D)
F) A) and C)

Question 11

Redemption Value is defined as:

Accepted Answer

A)  the price a corporation pays when it reserves the right to retire or redeem stock at a specific price.
B)  the price at which shares are bought and sold on the open market.
C)  the total stockholders' equity minus total amount assigned to preferred stock.
D)  the total of stockholders' equity (when only common stock exists) divided by the number of shares issued.E) C) and D)
F) A) and B)

Question 12

The entry to record the declaration of a stock dividend would include:

Accepted Answer

A)  a debit to Retained Earnings.
B)  a credit to Cash.
C)  a credit to Common Stock.
D)  None of these answers is correct.E) B) and D)
F) A) and D)

Question 13

Rick's Internet Corporation's balance in Retained Earnings is $50,000.The board of directors directs that $25,000 be appropriated for future business expansion.This will cause total retained earnings to:

Accepted Answer

A)  remain at $50,000.
B)  increase by $25,000.
C)  decrease by $25,000.
D)  increase or decrease $25,000,as determined by the board.E) A) and D)
F) C) and D)

Question 14

Quinn Corporation has 3,000 shares of common stock issued and outstanding.The board of directors declared a $2.00 per share cash dividend on January 25,payable on March 25,to stockholders of record on February 25.Prepare the appropriate journal entries for the declaration and payment of the dividend.

Accepted Answer

The answer of Quinn Corporation has 3,000 shares of common...

Question 15

Redemption value is the price at which a share of stock is bought and sold.

Accepted Answer

A) True 
 B)False

Question 16

A stock-split journal entry would include a:

Accepted Answer

A)  debit to Retained Earnings and a credit to Common Stock.
B)  debit to Common Stock and a credit to Cash.
C)  debit to Common Stock Dividend Distributable and a credit Common Stock.
D)  memorandum notation only.E) A) and D)
F) A) and B)

Question 17

From the following,determine the book value per share for preferred and common stocks;no dividends are in arrears on the preferred stock.

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The answer of From the following,determine the book value per...

Question 18

Which of the following would require a debit to the Retained Earnings account for a corporation?

Accepted Answer

A)  The initial investment of stockholders
B)  Net income of the period
C)  Net loss of the period
D)  Contributions by new stockholdersE) A) and B)
F) All of the above

Question 19

If treasury stock is re-issued at a price less than its cost,the debit entry could include:

Accepted Answer

A)  Paid-in Capital from Treasury Stock.
B)  Retained Earnings.
C)  Treasury Stock.
D)  Both A and BE) All of the above
F) B) and C)

Question 20

The entry to record the payment of a cash dividend would include a:

Accepted Answer

A)  debit to Dividends Payable.
B)  debit to Retained Earnings.
C)  credit to Cash.
D)  Both A and CE) All of the above
F) A) and D)

Exam 19: Corporations: Stock Values,dividends,treasury Stocks,

A prior period adjustment would be necessary when:

Correct Answer
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Redemption Value is defined as:

Correct Answer
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Declaration of a cash dividend was recorded by debiting Operations Expense and crediting Cash.This error would cause:

Correct Answer
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The entry to record the declaration of a stock dividend would include:

Correct Answer
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Treasury stock is:

Correct Answer
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Rick's Internet Corporation's balance in Retained Earnings is $50,000.The board of directors directs that $25,000 be appropriated for future business expansion.This will cause total retained earnings to:

Correct Answer
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Redemption value is the price at which a share of stock is bought and sold.

Correct Answer
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Common Stock Dividend Distributable is a liability account.

Correct Answer
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On the date of record,the journal entry would include:

Correct Answer
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The entry to record the payment of a cash dividend would include a:

Correct Answer
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A stock-split journal entry would include a:

Correct Answer
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If treasury stock is re-issued at a price less than its cost,the debit entry could include:

Correct Answer
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At the end of the accounting cycle,net income will be closed into:

Correct Answer
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Treasury stock was purchased and recorded as an asset.This error would cause:

Correct Answer
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Payment of a cash dividend causes:

Correct Answer
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From the following,determine the book value per share for preferred and common stocks;no dividends are in arrears on the preferred stock.

Correct Answer
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In the dividend process,the liability Dividend Payable is recognized on the:

Correct Answer
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Which of the following would require a debit to the Retained Earnings account for a corporation?

Correct Answer
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Exam 19: Corporations: Stock Values,dividends,treasury Stocks,

A prior period adjustment would be necessary when:

Correct AnswerverifiedShow Answer

Redemption Value is defined as:

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Declaration of a cash dividend was recorded by debiting Operations Expense and crediting Cash.This error would cause:

Correct AnswerverifiedShow Answer

The entry to record the declaration of a stock dividend would include:

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Treasury stock is:

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Rick's Internet Corporation's balance in Retained Earnings is $50,000.The board of directors directs that $25,000 be appropriated for future business expansion.This will cause total retained earnings to:

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Redemption value is the price at which a share of stock is bought and sold.

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Common Stock Dividend Distributable is a liability account.

Correct AnswerverifiedShow Answer

On the date of record,the journal entry would include:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The entry to record the payment of a cash dividend would include a:

Correct AnswerverifiedShow Answer

A stock-split journal entry would include a:

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If treasury stock is re-issued at a price less than its cost,the debit entry could include:

Correct AnswerverifiedShow Answer

At the end of the accounting cycle,net income will be closed into:

Correct AnswerverifiedShow Answer

Treasury stock was purchased and recorded as an asset.This error would cause:

Correct AnswerverifiedShow Answer

Payment of a cash dividend causes:

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From the following,determine the book value per share for preferred and common stocks;no dividends are in arrears on the preferred stock.

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In the dividend process,the liability Dividend Payable is recognized on the:

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Which of the following would require a debit to the Retained Earnings account for a corporation?

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