Exam 11: Reporting and Analyzing Equity

A corporation had stockholders' equity on January 1 as follows: Common Stock,$1 par value,1,500,000 shares authorized,600,000 shares issued; Paid-in Capital in Excess of Par Value,Common Stock,$1,100,000; Retained Earnings,$2,300,000.Prepare journal entries to record the following transactions:

Office Space,Inc.sold 30,000 shares of its no-par value common stock at a cash price of $10 per share.The entry to record this transaction would be:

Robin Company had net income of $67,000.The company had 9,000 weighted average common shares outstanding.The basic earnings per share equal $7.44 per share.

Preferred stock that allows preferred stockholders to share with common stockholders any dividends paid in excess of the percent or dollar amount stated on the preferred stock is called:

________ is a general term that refers to any shares issued to obtain owner financing in a corporation.

When preferred stock is cumulative and the directors either do not declare a dividend to preferred stockholders or declare one that does not cover the total amount of cumulative dividends,the unpaid amount is called ________.

A corporation with $10 par common stock issues a large stock dividend.The capitalization of retained earnings is equal to:

The following selected transactions took place during the current year for a company: (a)Prepare the journal entries for these transactions. (b)If Retained Earnings had a $155,000 credit balance on January 1,calculate its year-end balance as of December 31.

A company made an error in recording the Year 1 purchase of computer equipment as an expense.This was discovered in Year 2.The item should be reported as a prior period adjustment on the Year 2 income statement.

Participating preferred stock has a feature that allows its holders to share with common shareholders in any dividends paid in excess of the percent or dollar amount stated on the preferred stock.

Gracey's Department Stores has $200,000 of 6% noncumulative,nonparticipating,preferred stock outstanding.Gracey's also has $600,000 of common stock outstanding.During its first year,the company paid cash dividends of $30,000.This dividend should be distributed as follows:

A company paid $0.85 in cash dividends per share.Its earnings per share is $3.50,and its market price per share is $35.50.Its dividend yield equals:

Halverstein Company's outstanding stock consists of 7,000 shares of cumulative 5% preferred stock with a $10 par value and 3,000 shares of common stock with a $1 par value.During the first three years of operation,the corporation declared and paid the following total cash dividends. The amount of dividends paid to preferred and common shareholders in Year 2 is:

What is a stock split? How is a stock split different from a stock dividend?

Lafferty Corporation reported earnings per share of $9.75,paid a $6.00 cash dividend per share to preferred shareholders,and paid a $0.54 cash dividend per share to common shareholders.There were 10,000 shares of preferred stock outstanding and 600,000 shares of common stock outstanding during the year,and the market price per share of common stock was $41.60.Calculate the company's dividend yield for common stock.

The following data has been collected about Keller Company's stockholders' equity accounts: Assuming the treasury shares were all purchased at the same price,the cost per share of the treasury stock is:

West Company declared a $0.50 per share cash dividend.The company has 190,000 shares issued,and 10,000 shares in treasury stock.The journal entry to record the dividend declaration is:

A corporation with $10 par common stock issues a small stock dividend.The capitalization of retained earnings is equal to:

The price-earnings ratio is calculated by dividing:

A corporation issued 6,000 shares of its $2 par value common stock in exchange for land that has a market value of $84,000.The entry to record this transaction would include: