Exam 11: Reporting and Analyzing Stockholders Equity

The board of directors of Bosco Company declared a cash dividend on November 15, 2014, to be paid on December 15, 2014, to stockholders owning the stock on November 30, 2014. Given these facts, the date of November 30, 2014, is referred to as the

The effect of a stock dividend is to

Treasury Stock is a(n)

The following data is available for BOX Corporation at December 31, 2014: Common stock, par \ 10 (authorized 30,000 shares) \2 50,000 Treasury stock (at cost \ 15 per share) \1 ,200 Based on the data, how many shares of common stock are issued?

John Jones Company has 20,000 shares of $100 par value common stock. Assuming that the proper journal entry was made to record a 5% common stock dividend on the declaration date when the market value of the stock was $135, which of the following accounts would be debited when the stock dividend is distributed?

Preferred stock may be cumulative. Discuss this feature. (b) How are dividends in arrears presented in the financial statements?

Define par value, and discuss its significance in accounting.

On the dividend record date

The following information is available for Epstein Corporation 2014 2013 Average common stockholders' equity \ 1,500,000 \ 1,000,000 Average total stockholders' equity 2,000,000 1,500,000 Common dividends declared and paid 72,000 50,000 Preferred dividends declared and paid 30,000 30,000 Net income 180,000 150,000 Instructions Compute the payout ratio and return on common stockholders' equity for both years. Briefly comment on your findings.

A debit balance in the Retained Earnings account is identified as a deficit.

Preferred stockholders generally do not have the right to vote for the board of directors.

What is the total stockholders' equity based on the following account balances? Common Stock \ 750,000 Paid-In Capital in Excess of Par 50,000 Retained Earnings 175,000 Treasury Stock 25,000

Paid-in Capital in Excess of Par Value

When stock is issued in exchange for a noncash asset, the value recorded for the shares issued is best determined by

Which one of the following is not an ownership right of a stockholder in a corporation?

If common stock is issued for an amount greater than par value, the excess should be credited to

Berman Inc. has 6,000 shares of 8%, $50 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31, 2013, and December 31, 2014. The board of directors declared and paid an $18,000 dividend in 2013. In 2014, $72,000 of dividends are declared and paid. What are the dividends received by the common stockholders in 2014?

On October 31 the stockholders' equity section of Eaton Company's balance sheet consists of common stock $600,000 and retained earnings $400,000. Eaton is considering the following two courses of action: (1) declaring a 10% stock dividend on the 60,000 $10 par value shares outstanding or (2) affecting a 2-for-1 stock split that will reduce par value to $5 per share. The current market price is $15 per share. Instructions Prepare a tabular summary of the effects of the alternative actions on the company's stockholders' equity and outstanding shares. Use these column headings: Before Action, After Stock Dividend, and After Stock Split.

Retro Company is authorized to issue 10,000 shares of 8%, $100 par value preferred stock and 500,000 shares of no-par common stock with a stated value of $1 per share. If Retro issues 5,000 shares of common stock to pay its recent attorney's bill of $25,000 for legal services on a land access dispute, which of the following would be the best journal entry for Retro to record?

Paid-in capital in excess of stated value would appear on a balance sheet under the category