FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 11: Reporting and Analyzing Equity

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 1

Multiple Choice

Review LaterAdd Note

Review Later

Stated value of no-par stock is:

A) Another name for redemption value.
B) An amount assigned to par value stock by the state of incorporation.
C) The market value of the stock on the date of issuance.
D) The difference between the par value of stock and the amount below or above par value paid-in by the stockholder.
E) An amount assigned to no-par stock by the corporation's board of directors.

F) None of the above
G) B) and D)

Correct Answer

verified

Show Answer

Question 2

Multiple Choice

Review LaterAdd Note

Review Later

Retained earnings:

A) Generally consists of a company's cumulative net income less any net losses and dividends declared since its inception.
B) Can only be appropriated by setting aside a cash fund.
C) Represent an amount of cash available to pay shareholders.
D) Are never adjusted for anything other than net income or dividends.
E) Represents the amount shareholders are guaranteed to receive upon company liquidation.

F) A) and E)
G) A) and C)

Correct Answer

verified

Show Answer

Question 3

Multiple Choice

Review LaterAdd Note

Eastline Corporation had 10,000 shares of $10 par value common stock outstanding when the board of directors declared a stock dividend of 3,000 shares.At the time of the stock dividend,the market value per share was $12.The entry to record this dividend is:

On September 20,Fletcher Corporation issued 25,000 shares of no-par common stock for equipment having a market value of $85,000.Prepare the general journal entry to record this transaction.

Slate Corporation had the following balances in its stockholders' equity accounts at December 31,2017: The following transactions occurred during 2018: Based on the above information,prepare a statement of stockholders' equity for 2018.Use the form below.

Shareholders in a corporation have the power to bind the corporation to contracts.

In many states,the minimum amount that stockholders must contribute to the corporation,and which is intended to protect the creditors of the corporation,is called the:

Minimum legal capital requirements are intended to protect creditors.

A company issued 60 shares of $100 par value common stock for $7,000 cash.The total amount of paid-in capital is:

A company paid $0.48 in cash dividends per share.Its earnings per share is $3.20 and its market price per share is $20.00.Its dividend yield equals:

A dividend preference for preferred stock means that:

Changes in accounting estimates are accounted for in current and future periods.

A company reports the following stockholders' equity: Compute the (1)number of common shares outstanding and (2)book value per common share.

For each of the following independent transactions a through d,prepare the necessary journal entry: (a)Declared a $0.40 per share cash dividend on 300,000 shares of preferred stock outstanding. (b)Declared and distributed an 8% stock dividend on 800,000 shares of $5 par value common stock outstanding.Market price per common share on this date was $25. (c)Declared and distributed a 2-for-1 stock split on 400,000 shares of $10 par value common stock outstanding. (d)Declared and distributed a 35% stock dividend on 700,000 common shares of $1 par value common stock outstanding.Market price per common share on this date was $20.

Boron Company is authorized to issue 50,000 shares of $50 par value,8%,cumulative,fully participating preferred stock,and 750,000 shares of $5 par value common stock.Prepare journal entries to record the following selected transactions that occurred during the company's first year of operations:

The number of shares that a corporation's charter allows it to sell is referred to as:

________ are corrections of material errors in prior period financial statements.

The total amount of cash and other assets received by a corporation from its stockholders in exchange for its stock is:

Explain how to calculate the price-earnings ratio and describe how it is used in analysis of a company's financial condition and performance.

A corporation may not legally give shares of its stock to promoters in exchange for their services in organizing the corporation.