Corporation
What is a corporation?
A business organized under state law.
How is issuing common stock at par value recorded?
Debit Cash, Credit Common Stock
Why would a company issue a stock dividend?
To reward shareholders without using cash and to increase the number of shares outstanding.
What human organ can regenerate itself
liver
Name one characteristic that makes corporations the most well-known type of business.
They are legally separate from their owners.
What is treasury stock?
A corporation’s own stock that has been reacquired and is held in the company's treasury.
what president was a bartender
Abraham Lincoln
Who are the owners of a corporation?
Stockholders or shareholders.
What type of fish is Dory
Blue Tang
Calculate EPS: Net income of $2,000,000, preferred dividends of $100,000, and 500,000 common shares outstanding.
$3.80
Why do corporations issue stock?
To raise capital for growth and operations.
Journalize the purchase of 1,000 shares of treasury stock at $25 per share.
Debit Treasury Stock $25,000
Credit Cash $25,000
Record a 10% stock dividend when 100,000 shares are outstanding, with a market value of $20 per share
Stock Dividends $200,000
Common Stock Dividends Distributable $20,000
Paid-in Capital in Excess of Par $180,000
What is the only animal to have their heart in their head?
Shrimp
Does a stock split require a journal entry?
no