Exam 11: Reporting and Analyzing Stockholders Equity

Corporations generally issue stock dividends in order to

The declaration of a small stock dividend will

A debit balance in retained earnings is identified as a ________________.

The acquisition of treasury stock by a corporation increases total assets and total stockholders' equity.

Linda Merton asks, "Since stock dividends don't change anything, why declare them?" What is your answer to Linda?

The chief accounting officer in a company is known as the

Which of the following is not true of a corporation?

A corporation acts under its own name rather than in the name of its stockholders.

A small stock dividend is defined as

If no-par stock is issued without a stated value, then

Watson, Inc. has 10,000 shares of 6%, $100 par value, cumulative preferred stock and 20,000 shares of $1 par value common stock outstanding at December 31, 2014. There were no dividends declared in 2012. The board of directors declares and pays a $100,000 dividend in 2013 and in 2014. What is the amount of dividends received by the common stockholders in 2014?

YZ Company has $20,000 of dividends in arrears. Based on this information, which of the following statements is false?

Stockholders of a corporation directly elect

The effect of the declaration of a cash dividend by the board of directors is to

Par value of stock represents the __________________ per share that must be retained in the business for the protection of corporate ___________________.

Tomlinson Packaging Corporation began business in 2014 by issuing 30,000 shares of $5 par common stock for $8 per share and 5,000 shares of 6%, $10 par preferred stock for par. At year end, the common stock had a market value of $10. On its December 31, 2014 balance sheet, Tomlinson Packaging would report

Denson, Inc. has 10,000 shares of 7%, $100 par value, non-cumulative preferred stock and 40,000 shares of $1 par value common stock outstanding at December 31, 2014. There were no dividends declared in 2013. The board of directors declares and pays a $120,000 dividend in 2014. What is the amount of dividends received by the common stockholders in 2014?

The Paid-in Capital in Excess of Par Value is increased in the accounting records when

The stockholders' equity section of Fleming Corporation at December 31, 2013, included the following: Dividends were not declared on the preferred stock in 2013 and are in arrears. On September 15, 2014, the board of directors of Fleming Corporation declared dividends on the preferred stock to stockholders of record on October 1, 2014, payable on October 15, 2014. On November 1, 2014, the board of directors declared a $1 per share dividend on the common stock, payable November 30, 2014, to stockholders of record on November 15, 2014. Instructions Prepare the journal entries that should be made by Fleming Corporation on the dates indicated below: September 15,2014 November 1,2014 October 1,2014 November 15,2014 October 15,2014 November 30, 2014