If a corporation concerns 1,000 shares of $3 par prevalent stock for $7 a share, how much is the legal capital?
The legal resources is the par value per share ($3) times the number of shares issued (1,000) or $3,000.

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Which of these statements is false?=Ownership of prevalent stock provides the owner a voting right.=The stockholders" equity area begins with paid-in resources quantities.=The authorization of capital stock does not lead to a formal audit entry.=Legal capital is intfinished to defend stockholders.
Ercolony, an individual, receives $100 from Vernon Corp. in dividends and is in the 28% taxes bracket. Vernon Corp. currently paid corpoprice taxes on the $100 at a 20% taxation price. How much in personal taxes will certainly Ercolony need to pay?
Which of the complying with represents the amount per share of stock that should be kept in the business for the protection of corpoprice creditors?=Market value=Par value=Stated value=Legal capital
DT Inc. issued 3,000 shares of $5 par worth prevalent stock for $6 per share. Which of the following is one component of the journal enattempt to record the issuance=Credit to Typical Stock for $15,000=Credit to Common Stock for $18,000=Delittle to Paid-in Capital in Excess of Par Value for $3,000=Debit to Cash for $15,000
Wynola, Inc. issued 1,000 shares of widespread stock at $10 per share. If the stock has a par value of $4 per share, which of the adhering to will certainly be component of the journal entry to record the issuance?=Crmodify to Paid-in Capital in Excess of Par Value for $10,000=Delittle to Retained Wages for $6,000=Delittle to Cash for $4,000=Credit to Common Stock for $4,000
For what reason could a company get treasury stock?To reworry the shares to police officers and employees under bonus and also stock compensation plans=To rise profit=To signal to the stock sector that monitoring believes the stock is overpriced=To increase the number of shares of stock outstanding
Which among the adhering to decreases once a corporation purchases treasury stock?=Outstanding shares=Authorized shares=Treasury shares=Issued shares
What method is normally used to account for treasury stock?=Legal worth method=Stated worth method=Par value method=Cost method
If 1,000 shares of $5 par common stock are regot by a corporation for $12 a share, by exactly how much will full stockholders" equity be reduced?
A corporation marketed 1,000 shares of its $2.00 par value widespread stock for $10.00 per share and also later repurchased 100 of those shares for $12.00 per share. Which of the complying with will be debited to document the repurchase of the 100 shares?
A corporation has actually cumulative preferred stock on which it pays dividends of $20,000 per year. The dividends are in arrears for two years. If the corporation plans to distribute $90,000 as dividends in the existing year, just how much will certainly the common stockholders receive?
Preferred dividends in arrears for two years ($20,000 × 2) $40,000Preferred for current year 20,000Total to wanted stockholders $60,000Total dividends obtainable (90,000)Amount accessible to widespread stockholders $30,000
Which one of the following statements is incorrect?=When preferred stock is noncumulative, any dividend passed in a year is shed forever.=Dividends might be paid on widespread stock while dividends are in arrears on desired stock.=Dividends in arrears on preferred are not taken into consideration a licapability.=Dividends cannot be paid on widespread stock while any type of dividfinish on preferred stock is in arrears.

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Which among the following is not a right of wanted stockholders?=Priority in relation to dividends=Priority voting rights=Priority to the assets in the event of liquidation=Preferred stockholders always have actually all three of the above.
Which of the adhering to is a attribute connected just through desired stock?a. Dividend preferenceb. Preferral to assets in the event of liquidationc. Cumulative dividendsd. All of the above
M-Bot Corporation has 10,000 shares of 8%, $100 par worth, cumulative preferred stock exceptional at December 31, 2012. No dividends were claimed in 2010 or 2011. If M-Bot desires to pay $375,000 of dividends in 2012, just how a lot will certainly prevalent stockholders receive?
Before the prevalent stockholders get any dividends, the wanted dividends need to initially be dispersed for the two years in arrears and also the existing year.Total dividend = 10,000 × 8% × $100 = $80,000 Preferred dividends in arrears for two years ($80,000 × 2) $ 160,000 Preferred for present year 80,000 Total to preferred stockholders 240,000 Total dividends obtainable (375,000) Amount available to widespread stockholders $ 135,000
Which statement about stock dividends is true?=A stock dividend decreases total stockholders" equity.=A stock dividend rises complete stockholders" equity for the par worth of the stock being spread.=A stock dividfinish has no effect on total stockholders" equity.=Stock dividends reduce a company"s cash balance
Raptor Inc. has kept income of $500,000 and full stockholders" equity of $2,000,000. It has 100,000 shares of $8 par value prevalent stock outstanding, which is presently marketing for $30 per share. What will occur is Raptor declares a 10% stock dividend on its widespread stock?
A cumulative dividend function means that preferred stockholders must be passist only current-year dividends before widespread stockholders get dividends. (True or False)
Which of the complying with will rise the paid-in funding section of the balance sheet?=Treasury stock acquisition=Stock dividend=Stock split=Cash dividend
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