Question 1

What is treasury stock? What reasons might a company hold treasury stock?

Accepted Answer

Treasury stock is the company's own issu

Question 2

Prior to June 30,a company has never had any treasury stock transactions.A company repurchased 100 shares of its common stock on June 30 for $40 per share.On July 20,it reissued 50 of these shares at $46 per share.On August 1,it reissued 20 of the shares at $38 per share.What is the balance in the Treasury Stock account on August 2?

Accepted Answer

A) $5,050 Debit. 
B) $2,600 Credit. 
C) $100 Credit. 
D) $1,200 Debit. 
E) $1,200 Credit. 
A) $5,050 Debit. 
B) $2,600 Credit. 
C) $100 Credit. 
D) $1,200 Debit. 
E) $1,200 Credit.

Question 3

Prior to September 30,a company has never had any treasury stock transactions.A company repurchased 1,000 shares of its $2 par common stock on September 30 for $20 per share.On October 2,it reissued 400 of these shares at $21 per share.On October 12,it reissued the remaining 600 shares at $19 per share.The journal entry to record the reissuance of the shares on October 2 would be:

Accepted Answer

A) Debit Cash,$8,400; Credit Treasury Stock,$800; Credit Paid-in Capital,Treasury Stock,$7,600. 
B) Debit Cash,$8,400; Credit Treasury Stock,$8,000; Credit Paid-in Capital,Treasury Stock,$400. 
C) Debit Cash,$8,400; Credit Treasury Stock,$8,400. 
D) Debit Cash,$8,400; Credit Paid-in Capital,Treasury Stock,$8,400. 
E) Debit Cash,$8,400,Credit Treasury Stock,$8,000,Credit Paid-in Capital in Excess of Par Value,Common Stock,$400. 
A) Debit Cash,$8,400; Credit Treasury Stock,$800; Credit Paid-in Capital,Treasury Stock,$7,600. 
B) Debit Cash,$8,400; Credit Treasury Stock,$8,000; Credit Paid-in Capital,Treasury Stock,$400. 
C) Debit Cash,$8,400; Credit Treasury Stock,$8,400. 
D) Debit Cash,$8,400; Credit Paid-in Capital,Treasury Stock,$8,400. 
E) Debit Cash,$8,400,Credit Treasury Stock,$8,000,Credit Paid-in Capital in Excess of Par Value,Common Stock,$400.

Question 4

Cactus Joe Corporation reported stockholders' equity on January 1 of the current year as follows: Common Stock,$5 par value,1,000,000 shares authorized,600,000 shares issued; Paid-in Capital in Excess of Par Value,Common Stock,$1,025,000; Retained Earnings,$1,850,000.Prepare journal entries to record the following transactions:

Accepted Answer

The answer of Cactus Joe Corporation reported stockholders' equity on...

Question 5

________ is the stockholders' equity applicable to common shares divided by the number of common shares outstanding.

Accepted Answer

Book value

Question 6

A corporation may be authorized to issue both common and preferred stock.

Accepted Answer

A) True 
 B)False

Question 7

Common Stock Dividend Distributable is a liability account.

Accepted Answer

A) True 
 B)False

Question 8

Mayan Company had net income of $132,000.The weighted-average common shares outstanding were 80,000.The company declared a $27,000 dividend on its noncumulative,nonparticipating preferred stock.There were no other stock transactions.The company's earnings per share is:

Accepted Answer

A) $1.65. 
B) $1.99. 
C) $1.31. 
D) $0.34. 
E) $4.89. 
A) $1.65. 
B) $1.99. 
C) $1.31. 
D) $0.34. 
E) $4.89.

Question 9

A corporation paid a cash dividend of $0.85 per share during the current year.It had 1,550,000 common shares outstanding at year-end,its current year earnings per share was $3.45,and the stock's year-end market price was $10.63 per share.Calculate the company's dividend yield.

Accepted Answer

Dividend Yield = Cas

Question 10

Retained earnings generally consist of a company's cumulative net income less any net losses and dividends declared since its inception.

Accepted Answer

A) True 
 B)False

Question 11

Cash dividends decreases stockholders' equity at the time the dividends are paid.

Accepted Answer

A) True 
 B)False

Question 12

A liability for a dividend does not exist until the directors declare a dividend.

Accepted Answer

A) True 
 B)False

Question 13

Wiggins Company has 1,000 shares of $10 par preferred stock,which were issued at par.It also has 25,000 shares of common stock outstanding,and its total stockholders' equity equals $500,000.The book value per common share is:

Accepted Answer

A) $16.00. 
B) $19.60. 
C) $19.96. 
D) $20.00. 
E) $10.00. 
A) $16.00. 
B) $19.60. 
C) $19.96. 
D) $20.00. 
E) $10.00.

Question 14

Stock that has been issued and is held by stockholders is ________ stock.

Accepted Answer

The answer of Stock that has been issued and is...

Question 15

A company's board of directors votes to declare a cash dividend of $.75 per share of common stock.The company has 15,000 shares authorized,10,000 issued,and 9,500 shares outstanding.The total amount of the cash dividend is:

Accepted Answer

A) $10,250. 
B) $14,625. 
C) $7,125. 
D) $7,500. 
E) $11,250. 
A) $10,250. 
B) $14,625. 
C) $7,125. 
D) $7,500. 
E) $11,250.

Question 16

A company reported the following stockholders' equity on January 1 of the current year:
   Prepare journal entries for the following selected transactions related to this company's stock during the current year:

Accepted Answer

The answer of A company reported the following stockholders' equity...

Question 17

Cumulative preferred stock carries the right to be paid both current and all prior periods' unpaid dividends before any dividends are paid to common shareholders.

Accepted Answer

A) True 
 B)False

Question 18

If a corporation is authorized to issue 1,000 shares of $5 common stock,it is said to have $5,000 of stock outstanding.

Accepted Answer

A) True 
 B)False

Question 19

A liability for dividends exists:

Accepted Answer

A) When cumulative preferred stock is sold. 
B) On the date of declaration. 
C) On the date of record. 
D) On the date of payment. 
E) For dividends in arrears on cumulative preferred stock. 
A) When cumulative preferred stock is sold. 
B) On the date of declaration. 
C) On the date of record. 
D) On the date of payment. 
E) For dividends in arrears on cumulative preferred stock.

Question 20

The Discount on Common Stock account reflects:

Accepted Answer

A) The difference between the par value of stock and its issue price when it is issued at a price below par value. 
B) One share's portion of the issued corporation's net assets recorded in its accounts. 
C) The difference between the par value of the stock and the amount paid-in by stockholders when the amount paid-in is more than par value. 
D) An amount of assets defined by state law that stockholders must invest and leave invested in a corporation. 
E) The amount a corporation must pay in addition to dividends in arrears if and when it exercises its right to retire a share of callable preferred stock. 
A) The difference between the par value of stock and its issue price when it is issued at a price below par value. 
B) One share's portion of the issued corporation's net assets recorded in its accounts. 
C) The difference between the par value of the stock and the amount paid-in by stockholders when the amount paid-in is more than par value. 
D) An amount of assets defined by state law that stockholders must invest and leave invested in a corporation. 
E) The amount a corporation must pay in addition to dividends in arrears if and when it exercises its right to retire a share of callable preferred stock.

What is treasury stock? What reasons might a company hold treasury stock?

________ is the stockholders' equity applicable to common shares divided by the number of common shares outstanding.

A corporation may be authorized to issue both common and preferred stock.

Common Stock Dividend Distributable is a liability account.

Mayan Company had net income of $132,000.The weighted-average common shares outstanding were 80,000.The company declared a $27,000 dividend on its noncumulative,nonparticipating preferred stock.There were no other stock transactions.The company's earnings per share is:

A corporation paid a cash dividend of $0.85 per share during the current year.It had 1,550,000 common shares outstanding at year-end,its current year earnings per share was $3.45,and the stock's year-end market price was $10.63 per share.Calculate the company's dividend yield.

Retained earnings generally consist of a company's cumulative net income less any net losses and dividends declared since its inception.

Cash dividends decreases stockholders' equity at the time the dividends are paid.

A liability for a dividend does not exist until the directors declare a dividend.

Wiggins Company has 1,000 shares of $10 par preferred stock,which were issued at par.It also has 25,000 shares of common stock outstanding,and its total stockholders' equity equals $500,000.The book value per common share is:

Stock that has been issued and is held by stockholders is ________ stock.

A company's board of directors votes to declare a cash dividend of $.75 per share of common stock.The company has 15,000 shares authorized,10,000 issued,and 9,500 shares outstanding.The total amount of the cash dividend is:

A company reported the following stockholders' equity on January 1 of the current year: Prepare journal entries for the following selected transactions related to this company's stock during the current year:

Cumulative preferred stock carries the right to be paid both current and all prior periods' unpaid dividends before any dividends are paid to common shareholders.

If a corporation is authorized to issue 1,000 shares of $5 common stock,it is said to have $5,000 of stock outstanding.

A liability for dividends exists:

The Discount on Common Stock account reflects:

Introducing Financial Statements

Financial Statements and the Accounting System

Adjusting Accounts for Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Cash,fraud,and Internal Control

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Cash Flows

Analyzing and Interpreting Financial Statements

Applying Present and Future Values

Investments

International Operations

Filters

Exam 11: Reporting and Analyzing Equity

What is treasury stock? What reasons might a company hold treasury stock?

________ is the stockholders' equity applicable to common shares divided by the number of common shares outstanding.

A corporation may be authorized to issue both common and preferred stock.

Common Stock Dividend Distributable is a liability account.

Mayan Company had net income of $132,000.The weighted-average common shares outstanding were 80,000.The company declared a $27,000 dividend on its noncumulative,nonparticipating preferred stock.There were no other stock transactions.The company's earnings per share is:

A corporation paid a cash dividend of $0.85 per share during the current year.It had 1,550,000 common shares outstanding at year-end,its current year earnings per share was $3.45,and the stock's year-end market price was $10.63 per share.Calculate the company's dividend yield.

Retained earnings generally consist of a company's cumulative net income less any net losses and dividends declared since its inception.

Cash dividends decreases stockholders' equity at the time the dividends are paid.

A liability for a dividend does not exist until the directors declare a dividend.

Wiggins Company has 1,000 shares of $10 par preferred stock,which were issued at par.It also has 25,000 shares of common stock outstanding,and its total stockholders' equity equals $500,000.The book value per common share is:

Stock that has been issued and is held by stockholders is ________ stock.

A company's board of directors votes to declare a cash dividend of $.75 per share of common stock.The company has 15,000 shares authorized,10,000 issued,and 9,500 shares outstanding.The total amount of the cash dividend is:

A company reported the following stockholders' equity on January 1 of the current year: Prepare journal entries for the following selected transactions related to this company's stock during the current year:

Cumulative preferred stock carries the right to be paid both current and all prior periods' unpaid dividends before any dividends are paid to common shareholders.

If a corporation is authorized to issue 1,000 shares of $5 common stock,it is said to have $5,000 of stock outstanding.

A liability for dividends exists:

The Discount on Common Stock account reflects:

Introducing Financial Statements

Financial Statements and the Accounting System

Adjusting Accounts for Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Cash,fraud,and Internal Control

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Cash Flows

Analyzing and Interpreting Financial Statements

Applying Present and Future Values

Investments

International Operations

Filters