The number of shares a corporation may issue is specified in the articles of incorporation and approved by the Securities and Exchange Commission.
True or False
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Statement is FALSE : The number of shares a corporation may issue is specified in the articles of incorporation and approved by the Securities and Exchange Commission
Article of asocitation will have total number of authorized share, corporate may decide its own what number of share they need to issue but number should not be exceeding autotized share capital
The number of shares a corporation may issue is specified in the articles of incorporation and...
The articles of incorporation for Plum Corp. authorize the company to issue 100,000 $5 preferred shares and 500,000 common shares. During its first fiscal year of operations, Plum Corp. completed the following selected transactions: Required Record the transactions in the general journal. Prepare the shareholders’ equity section of the Plum Corp. balance sheet at November 30, 2020. hint 2 Issuing shares and preparing the shareholders’ equity section of the balance sheet 2. Total shareholders’ equity, $435,000 2019 Dec. 4 Issued...
Question 13 What authority determines how many shares of stock a corporation may issue? O Avote by the board of directors The rules of GAAP O Regulations of the Securities and Exchange Commission The government laws in the state where the business is incorporated
Even though a company sets a limit on the number of shares it will sell, before selling any of them, the company must receive authorization to market the shares from the Securities and Exchange Commission (SEC). True or False There are two major markets for the sale of stock: the primary market and the secondary market. True or False Informational efficiency has to do with the speed and accuracy of processing a buy or sell order at the best available...
Hammond Manufacturing Inc. was legally incorporated on January 2, 2020. Its articles of incorporation granted it the right to issue an unlimited number of common shares and 100,000 shares of $13.8 non-cumulative preferred shares. The following transactions are among those that occurred during the first three years of operations: 2020Jan.12Issued 40,200 common shares at $4.2 each.20Issued 8,000 common shares to promoters who provided legal services that helped to establish the company. These services had a fair value of $30,000.31Issued 74,000 common...
34. Which of the following represents the total number of shares that a corporation may issue under the terms of its charter? A) Authorized shares B) Issued shares C) Unissued shares D) Outstanding shares 35. The stockholders' equity section of Gunkel Corporation as of December 31, 2017, was as follows: Common stock, par value $2, authorized 20,000 shares; issued and outstanding 10,000 shares $ 20,000 Paid-in capital in excess of par 30,000 Retained earnings 85,000 $135,000 On March 1, 2018,...
18,19,20 18) Adam, Terry and Victor want to form ATV Corporation. Which of the following is not a step in forming the corporation? 15. (a) selecting a state of incorporation (b) preparing articles of incorporation (c) adopting bylaws at a shareholders' meeting (d) filing articles of incorporation (e) none of the above 16 17 19) Tim and Myra started a general partnership called "Purrrfect Pets". Tim and Myra each have personal assets exceeding $200,000 in value; however, Tim only invested...
Chapter 13 Assignment MATCHING a. Articles of incorporation. b. Incorporators. c. d. j. Total stockholder's equity. k.Legal capital. I. Treasury stock. m. Preferred stock. n.Common stock Board of directors. Registrars. e. Limited liability. Separation of ownership and control. O. Underwriter. Callable preferred stock. p. Convertible preferred stock. qCumulative preferred stock. g. h. Better debt to equity ratio. i. Decreased stockholder control. 1. An intermediary between the corporation and the investing public to help with a 2. 2. The number of...
Exercise 13-10 The articles of incorporation for Novak Technology Inc. authorize the issuance of 100,000 preferred shares and 250,000 common shares. During a two-month period, Novak Technology Inc. completed these share-issuance transactions: Mar 23 Issued 12,000 common shares for cash of S10.00 per share. Shareholders' equity section of a balance sheet 2. Total shareholders' equity, $271,500 Received inventory valued at $60,000 and equipment with a market value of $10,000 for 5,000 common shares. Issued 1,500 $2.25 preferred shares. The issue...
Borner Communications’ articles of incorporation authorized the issuance of 180 million common shares. The transactions described below effected changes in Borner’s outstanding shares. Prior to the transactions, Borner’s shareholders’ equity included the following: Shareholders' Equity ($ in millions) Common stock, 165 million shares at $1 par 165 Paid-in capital—excess of par 495 Retained earnings 275 Required: Assuming that Borner Communications retires shares it reacquires (restores their status to that of authorized but unissued shares), record the appropriate journal entry for...
Borner Communications’ articles of incorporation authorized the issuance of 125 million common shares. The transactions described below effected changes in Borner’s outstanding shares. Prior to the transactions, Borner’s shareholders’ equity included the following: Shareholders’ Equity ($ in millions) Common stock, 105 million shares at $1 par $ 105 Paid-in capital – excess of par 315 Retained earnings 295 Required: Assuming that Borner Communications retires shares it reacquires (restores their status to that of authorized but unissued shares), record the appropriate...