Financial Statements Paper 13

Authorized common stock refers to the total number of shares:

The par value of common stock represents:

When stock traded on an active exchange is issued for a machine:

Paid-in capital in excess of par is reported:

Share issue costs refer to the costs of obtaining the legal, promotional, and accounting services necessary to effect the sale of shares. The costs reduce the net cash proceeds from selling the shares and thus paid-in capital—excess of par, and are:

When stock is issued in exchange for property, the best evidence of fair value might be any of the following except:

When more than one security is sold for a single price and the total selling price is not equal to the sum of the market prices, the cash received is allocated between the securities based on:

The owners of a corporation are its shareholders. If a corporation has only one class of shares, they typically are labeled common shares. Each of the following are ownership rights held by common shareholders, unless specifically withheld by agreement, except:

The 12/31/2013 balance sheet of Despot Inc. included the following:
Common stock (25 mill shares @ $20 par) = $500 million
Paid-in capital excess of par = 3 billion
Retained earnings = 980 million
In January 2013, Despot recorded a transaction with this journal entry:
Debit:
Cash = 150 million
Credit:
Common stock = 100 million
Paid-in capital excess of par = 50 million
The transaction was for the:

The 12/31/2013 balance sheet of Despot Inc. included the following:
Common stock (25 mill shares @ $20 par) = $500 million
Paid-in capital excess of par = 3 billion
Retained earnings = 980 million
In February 2013, Despot declared cash dividends of $12 million to be paid in April of that year. What effect did the April transaction have on Despot’s accounts?