Show:
Chapter 12
Chapter 12
Chapter 12
Chapter 13
Chapter 13
100
Authorization of stock
What is the maximum shares of a stock class the corporation may issue?
100
Paid-in Capital
What is the section in the Stockholder's Equity that represents amounts received from stockholders?
100

The amount of stockholders' equity the corporation has earned through profitable operations and has not used for dividends.

What is retained earnings?

100

stock dividend

What is the distribution of profits to shareholders?

100

The number of shares outstanding in the hands of the stockholders (excluding Treasury Stock)


What is outstanding stock?

200
Stock Certificate
What is the document that represents the individual's ownership?
200
Retained Earnings
What is the section in the stockholder's equity that represents capital earned by profitable operations?
200
Declaration Date
What is the date that the board of directors announces the intention to pay a dividend?
200
Stock split
What is the action that increases the number of issued and outstanding shares of stock?
200

__________ is the only item that increases retained earnings.

What is net income?

300

1. separation of ownership and management

2. double taxation of distributed profits

3. government regulation


What are the disadvantages of a corporation?

300
Two classes of stock
What is preferred and common?
300
Book Value per share of stock
What is the amount of stockholder's equity on the company's books for each share of it's stock?
300
Treasury Stock
What is company stock that was previously issued and later reacquired?
300

The basic form of capital stock that every corporation issues.


What is common stock?

400
Corporation
What is a business owned by stockholders?
400
Par value
What is an arbitrary amount assigned by a company to a share of its stock?
400

Shares available for sale

What is authorized stock?

400

DAILY DOUBLE:

A company issues 10,000 shares of $.05 par value common stock for $25 per share. What is the amount credited to common stock?


Credit Common Stock for $500

400

Authority structure of an organization

What is an organization chart?

500

1. raise more capital

2. limited liability

3. continuous life

4. transferability of ownership


What are advantages of a corporation?

500

On May 15, XYZ Co. purchased 400 shares of treasury stock for $35 per share. On July 10, the company resold 200 shares of treasury stock for $40 per share. Record the sale of the treasury stock. 

Cash    $8,000

     Treasury Stock     $7,000

     Additional Paid in Capital $1,000

500

In its first three years of operation, a company has net income of $2,000, $5,000 and $8,000.  It also pays dividends of $1,000 in the second year and $3,000 in the third year. What is the balance of Retained Earnings at the end of the third year?

What is $11,000

500

California Surf Clothing issues 1,000 shares of $1 par value common stock at $35 per share. Later in the year, the company decides to purchase 100 shares at a cost of $38 per share. Record the purchase of treasury stock. 

Treasury Stock $3,800

       Cash $3,800

500

Stock usually having preferences as to dividends and distribution of assets in the event of liquidation.

What is preferred stock?