Chapter 10 Solutions 26 Correctly Answered Questions Latest Update

Retained Earnings {Ans: represents the amount of stockholders equity that the corporation has earned through profitable operations less any dividends declared.}is the basic form of capital stock {Ans: Common Stock}Stockholders ownership interest in the assets of the corporation is called {Ans: stockholders equity}Journal Entry {Ans: b. Cash (4 million × $14.00) 56 Common Stock (4 million × $3.00) 12 Paid-in Capital in Excess of Par Value 44 c. Treasury Stock 60 Cash 60 d. Cash 28 Treasury Stock 24* Paid-in Capital from Treasury Stock Transactions 4 e. Retained Earnings 32 Dividends Payable 32 Dividends Payable 32 Cash 32 or one entry only: Retained Earnings 32 Cash 32}Right to receive a proportionate share of any assets remaining after the corporation goes out of business, sells its assets and pay off its liabilities is the right of {Ans: liquidation}Jefferson Rafts Co. Balance Sheet (partial) March 31, 2019 {Ans: Stockholders' equity: Common stock, $15 par, 200,000 shares authorized, 20,500* shares issued and outstanding $307,500 Paid-in capital in excess of par - common** 119,500 Total paid-in capital................................................... 427,000 Retained earnings 55,000 Total stockholders' equity $482,000}Overall effect on stockholders equity {Ans: The overall effect on stockholders' equity =