Identify each of the items listed below as an asset, liability, stockholders' equity, revenue, or expense, and indicate the normal balance of each account.  

Transcribed Image Text:

TEST 11A (Concluded) QUESTIONS/STATEMENTS 19-23 State the net effect (increase, decrease, no effect) of the declaration and payment of a cash dividend on the following: 19. Accounts payable 20. Retained earnings 21. Total stockholders' equity 22. Cash 23. The liability of the stockholders of a corporation is usually (limited, unlimited) with respect to debts owed by the corporation. 0. Common Stock 1. Organization Costs 2. Paid-In Capital in Excess of Par-Preferred Stock 3. Retained Earnings 4. Treasury Stock 5. Preferred Stock 6. Cash ACCOUNTS A. Cash B. Cash Dividends C. Cash Dividends Payable PROBLEM 1-CLASSIFICATION OF ACCOUNTS-24% INSTRUCTIONS: Identify each of the items listed below as an asset, liability, stockholders' equity, revenue, or expense, and indicate the normal balance of each account. D. Common Stock E. Organization Cost Expense Common Stock H. Paid-in Capital in Excess of Par- Preferred Stock ACCOUNTS F. Paid-in Capital from Sale of Treasury Stock G. Paid-in Capital in Excess of Par- TRANSACTIONS 0. Issued 10,000 shares of $10 par common stock at $120 per share, receiving cash 1-2. Issued 450 shares of $25 par preferred stock with a fair market value of $30 per share to an attorney in payment of legal fees for organizing the corporation 3-4. Declared a stock dividend of 8,000 shares of $100 par common stock; fair market value is $150 per share 5-6. Issued a stock dividend declared in Question 3-4 Answers Noerfect Decrease Decrease Decrease limited 7-8. Sold all 500 shares of treasury stock that was originally purchased at $40 for $75, receiving cash -10. Acquired treasury stock for $40 per share. It had originally been $20 par common stock issued at $32 per share -12. Declared a cash dividend on common stock: Answers Item stockholders equity Balance PROBLEM 2-ANALYSIS OF TRANSACTIONS-30% INSTRUCTIONS: Selected transactions are listed below. For each transaction, indicate the account(s) to be debited and credited by inserting in the appropriate column the letter(s) that correspond to the accounts listed below. (Do not record amounts) 1. For Scoring credit 35 19. 20. 21. 22. 1. Preferred Stock J. Retained Earnings 23. 7. 9. 11. For Scoring For Debit Scoring Credit A 0. 0. K. Stock Dividends L. Stock Dividends Distributable M. Treasury Stock 1. 2. D, G 3. 4. 5. 6. For Scoring 0. 2. 4. 6. 8. 10. 12. TEST 11A (Concluded) QUESTIONS/STATEMENTS 19-23 State the net effect (increase, decrease, no effect) of the declaration and payment of a cash dividend on the following: 19. Accounts payable 20. Retained earnings 21. Total stockholders' equity 22. Cash 23. The liability of the stockholders of a corporation is usually (limited, unlimited) with respect to debts owed by the corporation. 0. Common Stock 1. Organization Costs 2. Paid-In Capital in Excess of Par-Preferred Stock 3. Retained Earnings 4. Treasury Stock 5. Preferred Stock 6. Cash ACCOUNTS A. Cash B. Cash Dividends C. Cash Dividends Payable PROBLEM 1-CLASSIFICATION OF ACCOUNTS-24% INSTRUCTIONS: Identify each of the items listed below as an asset, liability, stockholders' equity, revenue, or expense, and indicate the normal balance of each account. D. Common Stock E. Organization Cost Expense Common Stock H. Paid-in Capital in Excess of Par- Preferred Stock ACCOUNTS F. Paid-in Capital from Sale of Treasury Stock G. Paid-in Capital in Excess of Par- TRANSACTIONS 0. Issued 10,000 shares of $10 par common stock at $120 per share, receiving cash 1-2. Issued 450 shares of $25 par preferred stock with a fair market value of $30 per share to an attorney in payment of legal fees for organizing the corporation 3-4. Declared a stock dividend of 8,000 shares of $100 par common stock; fair market value is $150 per share 5-6. Issued a stock dividend declared in Question 3-4 Answers Noerfect Decrease Decrease Decrease limited 7-8. Sold all 500 shares of treasury stock that was originally purchased at $40 for $75, receiving cash -10. Acquired treasury stock for $40 per share. It had originally been $20 par common stock issued at $32 per share -12. Declared a cash dividend on common stock: Answers Item stockholders equity Balance PROBLEM 2-ANALYSIS OF TRANSACTIONS-30% INSTRUCTIONS: Selected transactions are listed below. For each transaction, indicate the account(s) to be debited and credited by inserting in the appropriate column the letter(s) that correspond to the accounts listed below. (Do not record amounts) 1. For Scoring credit 35 19. 20. 21. 22. 1. Preferred Stock J. Retained Earnings 23. 7. 9. 11. For Scoring For Debit Scoring Credit A 0. 0. K. Stock Dividends L. Stock Dividends Distributable M. Treasury Stock 1. 2. D, G 3. 4. 5. 6. For Scoring 0. 2. 4. 6. 8. 10. 12.

Answer rating: 100% (QA)

Cut Copy Format Painter Clipboard K17 A Problem 1 Problem 2 ... View the full answer