Organization expenses include all of the following except a. legal fees b. fees paid to obtain a state charter c. promoter fees d. depreciation expense 2. the general rights of common shareholders includes the preemptive right true false 3. Outstanding stock refers to the number of shares of stock that a corporation's charter allows it to sell true false 4. stockholders' or sharholders' equity ordinarily consists both paid-in capital and retained earnings true false 5. advantages of a C- corporation ordinarily include ease of capital accumulation, ready transferability of ownership rights, and both a limited life of the corporation and limited liability of the shareholders true false 6. When a company makes a net profit, retained earnings is credited true false 7. a corporation's par value value of its stock establishing minimum legal capital true false 8. in recording a small stock dividend, retained earnings is debited while in recording a large stock dividend, retained earnings is not debited true false 9. a small stock dividend is defined by US GAAP by a dividend involving 25% of the issued number of common shares true false 10. common stock dividend distributable is a temporary liability true false 11. Date of declaration, date of record and date of payment all involve prepaing journal entries true false 12. When par value common stock is issued at a premium, the journal entry shows a debit to both common stock, par value and paid-in capital in excess of par true false 13 The features small stock dividends, large stock dividends, large stock dividends and stock splits all show decreases in retained earnings true false 14 The features small stock dividends, large stock dividends, large stock dividends and stock splits are similar in that all three are documented with journal entries true False 15. The mosaic corporation issued 10000 shares of $50 par, 9% preferred stock, and received $530000 from it investors. The following is true a. The company debits 530000 in cash and pays 45000 in cash dividends annually B. the company debits 530000 in cash and pays 50000 in cash dividends annually c. the company debits 530000 in cash and pays 9000 annually in cash dividends d. the company debits 530000 in cash and credits preferred stock 530000 Please answer all of the questions!

Organization expenses include all of the following except a. legal fees b. fees paid to obtain a state charter c. promoter fees d. depreciation expense 2. the general rights of common shareholders includes the preemptive right true false 3. Outstanding stock refers to the number of shares of stock that a corporation's charter allows it to sell true false 4. stockholders' or sharholders' equity ordinarily consists both paid-in capital and retained earnings true false 5. advantages of a C- corporation ordinarily include ease of capital accumulation, ready transferability of ownership rights, and both a limited life of the corporation and limited liability of the shareholders true false 6. When a company makes a net profit, retained earnings is credited true false 7. a corporation's par value value of its stock establishing minimum legal capital true false 8. in recording a small stock dividend, retained earnings is debited while in recording a large stock dividend, retained earnings is not debited true false 9. a small stock dividend is defined by US GAAP by a dividend involving 25% of the issued number of common shares true false 10. common stock dividend distributable is a temporary liability true false 11. Date of declaration, date of record and date of payment all involve prepaing journal entries true false 12. When par value common stock is issued at a premium, the journal entry shows a debit to both common stock, par value and paid-in capital in excess of par true false 13 The features small stock dividends, large stock dividends, large stock dividends and stock splits all show decreases in retained earnings true false 14 The features small stock dividends, large stock dividends, large stock dividends and stock splits are similar in that all three are documented with journal entries true False 15. The mosaic corporation issued 10000 shares of $50 par, 9% preferred stock, and received $530000 from it investors. The following is true a. The company debits 530000 in cash and pays 45000 in cash dividends annually B. the company debits 530000 in cash and pays 50000 in cash dividends annually c. the company debits 530000 in cash and pays 9000 annually in cash dividends d. the company debits 530000 in cash and credits preferred stock 530000 Please answer all of the questions!

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter3: Corporations: Introduction And Operating Rules

Section: Chapter Questions

Problem 17DQ

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Related questions

Question

1. Organization expenses include all of the following except

a. legal fees

b. fees paid to obtain a state charter

c. promoter fees

d. depreciation expense

2. the general rights of common shareholders includes the preemptive right

true

false

3. Outstanding stock refers to the number of shares of stock that a corporation's charter allows it to sell

true

false

4. stockholders' or sharholders' equity ordinarily consists both paid-in capital and retained earnings

true

false

5. advantages of a C- corporation ordinarily include ease of capital accumulation, ready transferability of ownership rights, and both a limited life of the corporation and limited liability of the shareholders

true

false

6. When a company makes a net profit, retained earnings is credited

true

false

7. a corporation's par value value of its stock establishing minimum legal capital

true

false

8. in recording a small stock dividend, retained earnings is debited while in recording a large stock dividend, retained earnings is not debited

true

false

9. a small stock dividend is defined by US GAAP by a dividend involving 25% of the issued number of common shares

true

false

10. common stock dividend distributable is a temporary liability

true

false

11. Date of declaration, date of record and date of payment all involve prepaing journal entries

true

false

12. When par value common stock is issued at a premium, the journal entry shows a debit to both common stock, par value and paid-in capital in excess of par

true

false

13 The features small stock dividends, large stock dividends, large stock dividends and stock splits all show decreases in retained earnings

true

false

14 The features small stock dividends, large stock dividends, large stock dividends and stock splits are similar in that all three are documented with journal entries

true

False

15. The mosaic corporation issued 10000 shares of $50 par, 9% preferred stock, and received $530000 from it investors. The following is true

a. The company debits 530000 in cash and pays 45000 in cash dividends annually

B. the company debits 530000 in cash and pays 50000 in cash dividends annually

c. the company debits 530000 in cash and pays 9000 annually in cash dividends

d. the company debits 530000 in cash and credits preferred stock 530000

Please answer all of the questions!

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