107.Taylor Corporation issues 20,000 shares of $50 par value preferred stock for cash at $90 per share. The entry to record the transaction will consist of a debit to Cash for $1,800,000 and a credit or credits to
a.Preferred Stock for $1,800,000.
b.Preferred Stock for $1,000,000 and Paid-in Capital in Excess of Par—Preferred Stock for $800,000.
c.Preferred Stock for $800,000 and Paid-in Capital from Preferred Stock for $1,000,000.
d.Paid-in Capital from Preferred Stock for $1,800,000.
108.Taylor Corporation issues 20,000 shares of $50 par value preferred stock for cash at $90 per share. In the stockholders' equity section, the effects of the transaction above will be reported
a.entirely within the capital stock section.
b.entirely within the additional paid-in capital section.
c.under both the capital stock and additional paid-in capital sections.
d.entirely under the retained earnings section.
109.Dividends in arrears on cumulative preferred stock
a.are shown in stockholders’ equity of the balance sheet.
b.must be paid before common stockholders can receive a dividend.
c.should be recorded as a current liability until they are paid.
d.enable the preferred stockholders to share equally in corporate earnings with the common stockholders.
110.Dividends in arrears on cumulative preferred stock
a.are considered to be a non-current liability.
b.are considered to be a current liability.
c.only occur when preferred dividends have been declared.
d.should be disclosed in the notes to the financial statements.
111.If preferred stock is cumulative, the
a.preferred dividends not declared in a given year are called dividends in arrears.
b.preferred stockholders and the common stockholders receive equal dividends.
c.preferred stockholders and the common stockholders receive the same total dollar amount of dividends.
d.common stockholders will share in the preferred dividends.
112.The Sorrento Skies Corporation issues 16,000 shares of $100 par value preferred stock for cash at $120 per share. The entry to record the transaction will consist of a debit to Cash for $1,920,000 and a credit or credits to
a.Preferred Stock for $1,920,000.
b.Paid-in Capital from Preferred Stock for $1,920,000.
c.Preferred Stock for $1,600,000 and Retained Earnings for $320,000.
d.Preferred Stock for $1,600,000 and Paid-in Capital in Excess of Par—Preferred Stock for $320,000.
113.Vangaurd Corporation’s December 31, 2017 balance sheet showed the following:
8% preferred stock, $20 par value, cumulative, 20,000 shares
authorized; 15,000 shares issued$ 300,000
1,950,000 shares issued, 1,920,000 shares outstanding19,500,000
114.Victory Corporation sold 400 shares of treasury stock for $45 per share. The cost for the shares was $35. The entry to record the sale will include a
a.credit to Gain on Sale of Treasury Stock for $14,000.
b.credit to Paid-in Capital from Treasury Stock for $4,000.
c.debit to Paid-in Capital in Excess of Par for $4,000.
d.credit to Treasury Stock for $18,000.
115.Each of the following is correct regarding treasury stock except that it has been
b.fully paid for.
116.Treasury stock is
a.stock issued by the U.S. Treasury Department.
b.stock purchased by a corporation and held as an investment in its treasury.
c.corporate stock issued by the treasurer of a company.
d.a corporation's own stock which has been issued and subsequently reacquired but not retired.