Exam 11: Reporting and Analyzing Stockholders Equity

Racer Corporation's December 31, 2014 balance sheet showed the following: Racer declared and paid a $100,000 cash dividend on December 15, 2014. If the company's dividends in arrears prior to that date were $24,000, Racer's common stockholders received

Anders, Inc has 10,000 shares of 5%, €100 par value, cumulative preference shares and 20,000 ordinary shares with a $1 par value outstanding at December 31, 2014. There were no dividends declared in 2012. The board of directors declares and pays a €90,000 dividend in 2013 and in 2014. What is the amount of dividends received by the ordinary shareholders in 2014?

The board of directors of Yancey Company declared a cash dividend of $1.50 per share on 42,000 shares of common stock on July 15, 2014. The dividend is to be paid on August 15, 2014, to stockholders of record on July 31, 2014. The effects of the journal entry to record the declaration of the dividend on July 15, 2014, are to

Which of the following would not affect the balance of the Retained Earnings account?

Which of the following statements regarding the date of a cash dividend declaration is not accurate?

A stockholder who receives a stock dividend would

Manner, Inc. has 10,000 shares of 5%, ₤100 par value, noncumulative preference shares and 20,000 ordinary shares with a ₤1 par value outstanding at December 31, 2014. There were no dividends declared in 2013. The board of directors declares and pays a ₤90,000 dividend in 2014. What is the amount of dividends received by the ordinary share holders in 2014?

A stock split results in a transfer at market value from retained earnings to paid-in capital.

Ferman Corporation had net income of $160,000 and paid dividends of $50,000 to common stockholders and $20,000 to preferred stockholders in 2014. Ferman Corporation's common stockholders' equity at the beginning and end of 2014 was $870,000 and $1,130,000, respectively. Ferman Corporation's payout ratio for 2014 was

The cost of treasury stock is deducted from total paid-in capital and retained earnings in determining total stockholders' equity.

What is the total stockholders' equity based on the following account balances? Common Stock \ 1,300,000 Paid-In Capital in Excess of Par 100,000 Retained Earnings 360,000 Treasury Stock 60,000

Which of the following is not a significant date with respect to dividends?

Which of the following statements about treasury stock is true?

The amount of stock that may be issued according to the corporation's charter is referred to as the

The sale of shares in a corporation by one stockholder to another affects the total capital of the corporation.

Information that is not generally reported for each class of stock on the balance sheet is

A liability arises when the board of directors declares a stock dividend.

Nice Corporation issues 30,000 shares of $100 par value preferred stock for cash at $110 per share. The entry to record the transaction will consist of a debit to Cash for $3,300,000 and a credit or credits to

If the board of directors authorizes a $100,000 restriction of retained earnings for a future plant expansion, the effect of this action is to

Stock dividends and stock splits have the following effects on retained earnings: