Question 1

The amount assigned per share to stock by the corporation in its charter is the ________.

Accepted Answer

The answer of The amount assigned per share to stock...

Question 2

Dividend yield is computed by dividing earnings per share by the market value per share.

Accepted Answer

A) True 
 B)False

Question 3

Explain where each of the following items should appear in the financial statements of a corporation:
(1)The accounting department discovered that an entry was made last year to Insurance Expense instead of to Prepaid Insurance.The after-tax effect of the charge to Insurance Expense was $5,000.
(2)The company grants five of its employees the option to purchase 100 shares of its $5 par value common stock at its current market price of $20 per share anytime with the next five years.None of the employees exercised the options in the current year.

Accepted Answer

(1)This is an error that should be repor

Question 4

The term restricted retained earnings refers to statutory but not contractual restrictions.

Accepted Answer

A) True 
 B)False

Question 5

The costs of bringing a corporation into existence,including legal fees,promoter fees,and amounts paid to obtain a charter are called:

Accepted Answer

A) Minimum legal capital. 
B) Stock subscriptions. 
C) Organization expenses. 
D) Selling expenses. 
E) Prepaid fees. 
A) Minimum legal capital. 
B) Stock subscriptions. 
C) Organization expenses. 
D) Selling expenses. 
E) Prepaid fees.

Question 6

A company has 500 shares of $50 par value preferred stock outstanding,and the call price of its preferred stock is $60 per share.It also has 20,000 shares of common stock outstanding,and the total value of its stockholders' equity is $680,000.The company's book value per common share equals:

Accepted Answer

A) $31.71. 
B) $32.50. 
C) $32.75. 
D) $33.17. 
E) $60.00. 
A) $31.71. 
B) $32.50. 
C) $32.75. 
D) $33.17. 
E) $60.00.

Question 7

When a corporation has only one class of stock,the stock is called:

Accepted Answer

A) Preferred stock. 
B) Common stock. 
C) Par value stock. 
D) Stated value stock. 
E) No-par value stock. 
A) Preferred stock. 
B) Common stock. 
C) Par value stock. 
D) Stated value stock. 
E) No-par value stock.

Question 8

Paid-in capital is the total amount of cash and other assets the corporation receives from its stockholders in exchange for its stock.

Accepted Answer

A) True 
 B)False

Question 9

Parlay Corporation has 2,000,000 shares of $0.50 par value common stock outstanding.The following selected transactions related to the company's stock took place during the current year:
   Prepare necessary journal entries to record the events of April 15,May 1 and May 10.

Accepted Answer

The answer of Parlay Corporation has 2,000,000 shares of $0.50...

Question 10

________ is the amount of income earned per share of a company's outstanding common stock.

Accepted Answer

The answer of ________ is the amount of income earned...

Question 11

Prior to June 30,a company has never had any treasury stock transactions.A company repurchased 100 shares of its $1 par 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 journal entry necessary to record the repurchase of stock on June 30?

Accepted Answer

A) Debit Common Stock $4,000; credit Cash $4,000. 
B) Debit Common Stock $100; debit Treasury Stock $3,900; credit Cash $4,000. 
C) Debit Treasury Stock $3,900; debit Paid-in Capital,Treasury Stock $100; credit Cash $4,000. 
D) Debit Treasury Stock,Common $4,000; credit Cash $4,000. 
E) Debit Cash $4,000; credit Treasury Stock $4,000. 
A) Debit Common Stock $4,000; credit Cash $4,000. 
B) Debit Common Stock $100; debit Treasury Stock $3,900; credit Cash $4,000. 
C) Debit Treasury Stock $3,900; debit Paid-in Capital,Treasury Stock $100; credit Cash $4,000. 
D) Debit Treasury Stock,Common $4,000; credit Cash $4,000. 
E) Debit Cash $4,000; credit Treasury Stock $4,000.

Question 12

On September 1,Ziegler Corporation had 50,000 shares of $5 par value common stock,and $1,500,000 of retained earnings.On that date,when the market price of the stock is $15 per share,the corporation issues a 2-for-1 stock split.The general journal entry to record this transaction is:

Accepted Answer

A) Debit Retained Earnings $750,000; credit Common Stock Split Distributable $750,000. 
B) Debit Retained Earnings $750,000; credit Common Stock $750,000. 
C) Debit Retained Earnings $250,000; credit Common Stock $250,000. 
D) Debit Retained Earnings $250,000; credit Stock Split Payable $250,000. 
E) No entry is made for this transaction. 
A) Debit Retained Earnings $750,000; credit Common Stock Split Distributable $750,000. 
B) Debit Retained Earnings $750,000; credit Common Stock $750,000. 
C) Debit Retained Earnings $250,000; credit Common Stock $250,000. 
D) Debit Retained Earnings $250,000; credit Stock Split Payable $250,000. 
E) No entry is made for this transaction.

Question 13

When no-par stock is not assigned a stated value,the total amount received is recorded in the Common Stock account.

Accepted Answer

A) True 
 B)False

Question 14

Shaw Corporation reported stockholders' equity on December 31 of the prior year as follows:
   The following selected transactions occurred during the current year:
   Prepare a statement of retained earnings as of December 31 of the current year.

Accepted Answer

The answer of Shaw Corporation reported stockholders' equity on December...

Question 15

The cumulative net income and loss not distributed as dividends to a corporation's shareholders is called ________.

Accepted Answer

The answer of The cumulative net income and loss not...

Question 16

The group responsible for and have final authority for managing a corporation's activities is (are)the ________.

Accepted Answer

board of d

Question 17

Paid and declared preferred dividends are called dividends in arrears.

Accepted Answer

A) True 
 B)False

Question 18

All of the following statements regarding stock dividends are true except:

Accepted Answer

A) Directors can use stock dividends to keep the market price of the stock affordable. 
B) Stock dividends provide evidence of management's confidence that the company is doing well. 
C) Stock dividends do not reduce assets or equity. 
D) Stock dividends decrease the number of shares outstanding. 
E) Stock dividends transfer a portion of equity from retained earnings to contributed capital. 
A) Directors can use stock dividends to keep the market price of the stock affordable. 
B) Stock dividends provide evidence of management's confidence that the company is doing well. 
C) Stock dividends do not reduce assets or equity. 
D) Stock dividends decrease the number of shares outstanding. 
E) Stock dividends transfer a portion of equity from retained earnings to contributed capital.

Question 19

What are the rights generally granted to common stockholders?

Accepted Answer

Common stockholders generally have the r

Question 20

Odessa Corporation had 20,000 shares of $2 par value common stock outstanding on July 1.On that day,the board of directors declared a 10% stock dividend when the market value of each share was $9.The stock dividend is to be distributed on July 20 to stockholders of record on July 10.The entry to record the dividend declaration is:

Accepted Answer

A) Debit Retained Earnings $18,000; credit Common Stock Dividend Distributable $18,000. 
B) Debit Retained Earnings $18,000; credit Common Stock Dividends Distributable $4,000; credit Paid-In Capital in Excess of Par Value,Common Stock $14,000. 
C) Debit Retained Earnings $18,000; credit Common Stock $4,000; credit Paid-In Capital in Excess of Par Value,Common Stock $14,000. 
D) Debit Retained Earnings $18,000; credit Common Stock $18,000. 
E) No entry is made until the stock is issued. 
A) Debit Retained Earnings $18,000; credit Common Stock Dividend Distributable $18,000. 
B) Debit Retained Earnings $18,000; credit Common Stock Dividends Distributable $4,000; credit Paid-In Capital in Excess of Par Value,Common Stock $14,000. 
C) Debit Retained Earnings $18,000; credit Common Stock $4,000; credit Paid-In Capital in Excess of Par Value,Common Stock $14,000. 
D) Debit Retained Earnings $18,000; credit Common Stock $18,000. 
E) No entry is made until the stock is issued.

The amount assigned per share to stock by the corporation in its charter is the ________.

Dividend yield is computed by dividing earnings per share by the market value per share.

The term restricted retained earnings refers to statutory but not contractual restrictions.

The costs of bringing a corporation into existence,including legal fees,promoter fees,and amounts paid to obtain a charter are called:

A company has 500 shares of $50 par value preferred stock outstanding,and the call price of its preferred stock is $60 per share.It also has 20,000 shares of common stock outstanding,and the total value of its stockholders' equity is $680,000.The company's book value per common share equals:

When a corporation has only one class of stock,the stock is called:

Paid-in capital is the total amount of cash and other assets the corporation receives from its stockholders in exchange for its stock.

Parlay Corporation has 2,000,000 shares of $0.50 par value common stock outstanding.The following selected transactions related to the company's stock took place during the current year: Prepare necessary journal entries to record the events of April 15,May 1 and May 10.

________ is the amount of income earned per share of a company's outstanding common stock.

On September 1,Ziegler Corporation had 50,000 shares of $5 par value common stock,and $1,500,000 of retained earnings.On that date,when the market price of the stock is $15 per share,the corporation issues a 2-for-1 stock split.The general journal entry to record this transaction is:

When no-par stock is not assigned a stated value,the total amount received is recorded in the Common Stock account.

Shaw Corporation reported stockholders' equity on December 31 of the prior year as follows: The following selected transactions occurred during the current year: Prepare a statement of retained earnings as of December 31 of the current year.

The cumulative net income and loss not distributed as dividends to a corporation's shareholders is called ________.

The group responsible for and have final authority for managing a corporation's activities is (are)the ________.

Paid and declared preferred dividends are called dividends in arrears.

All of the following statements regarding stock dividends are true except:

What are the rights generally granted to common stockholders?

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

The amount assigned per share to stock by the corporation in its charter is the ________.

Dividend yield is computed by dividing earnings per share by the market value per share.

The term restricted retained earnings refers to statutory but not contractual restrictions.

The costs of bringing a corporation into existence,including legal fees,promoter fees,and amounts paid to obtain a charter are called:

A company has 500 shares of $50 par value preferred stock outstanding,and the call price of its preferred stock is $60 per share.It also has 20,000 shares of common stock outstanding,and the total value of its stockholders' equity is $680,000.The company's book value per common share equals:

When a corporation has only one class of stock,the stock is called:

Paid-in capital is the total amount of cash and other assets the corporation receives from its stockholders in exchange for its stock.

Parlay Corporation has 2,000,000 shares of $0.50 par value common stock outstanding.The following selected transactions related to the company's stock took place during the current year: Prepare necessary journal entries to record the events of April 15,May 1 and May 10.

________ is the amount of income earned per share of a company's outstanding common stock.

On September 1,Ziegler Corporation had 50,000 shares of $5 par value common stock,and $1,500,000 of retained earnings.On that date,when the market price of the stock is $15 per share,the corporation issues a 2-for-1 stock split.The general journal entry to record this transaction is:

When no-par stock is not assigned a stated value,the total amount received is recorded in the Common Stock account.

Shaw Corporation reported stockholders' equity on December 31 of the prior year as follows: The following selected transactions occurred during the current year: Prepare a statement of retained earnings as of December 31 of the current year.

The cumulative net income and loss not distributed as dividends to a corporation's shareholders is called ________.

The group responsible for and have final authority for managing a corporation's activities is (are)the ________.

Paid and declared preferred dividends are called dividends in arrears.

All of the following statements regarding stock dividends are true except:

What are the rights generally granted to common stockholders?

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