Exam 11: Reporting and Analyzing Stockholders Equity

Treasury stock is

Samson Company had the following transactions. 1. Issued 5,000 shares of $100 par preferred stock at $107 for cash. 2. Issued 8,000 share of common stock with a par value of $10 for $120,000. 3. Purchased 500 shares of treasury common stock for $12,000. Instructions Prepare the journal entries to record the above stock transactions.

Jahnke Corporation issued 8,000 shares of €2 par value ordinary shares for €11 per share. The journal entry to record the sale will include

For accounting purposes, stated value is treated the same way as par value.

The payout ratio is computed by dividing

All of the following statements regarding retained earnings are true except

Treasury stock is reported as an asset on the balance sheet because treasury stock may later be resold.

Nance Corporation's December 31, 2014 balance sheet showed the following: 8% preferred stock, $20 par value, cumulative, Nance's total stockholders' equity was

The board of directors of Benson 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 payment of the dividend on August 15, 2014, are to

Indicate the respective effects of the declaration of a cash dividend on the following balance sheet sections:

Preferred stock has contractual preference over common stock in certain areas.

(Communication) As part of a Careers in Accounting program sponsored by accounting organizations and supported by your company, you will be taking a group of high-school students through the accounting department in your company. You will also provide them with various materials to explain the work of an accountant. One of the materials you will provide is the Stockholders' Equity section of a recent balance sheet. Required: Prepare a short response explaining each major section: Common Stock, Additional Paid-in Capital, and Retained Earnings. You should try to be brief but clear.

What is the total stockholders' equity based on the following account balances?

The stockholders' equity section of Fleming Corporation at December 31, 2013, included the following: 4% preferred stock, $100 par value, cumulative, 15,000 shares authorized, 10,000 shares issued and outstanding $1,000,000 Common stock, $10 par value, 250,000 shares authorized, 200,000 shares issued and outstanding $2,000,000 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:

The ability of a corporation to obtain capital is

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?

If Pratt Company issues 5,000 shares of $5 par value common stock for $210,000, the account

Which of the following statements is true regarding corporate performance ratios?

The journal entry to record the purchase of treasury stock will cause total stockholders' equity to decrease by the amount of the cost of the treasury stock.

The following accounts appear in the ledger of Bradley, Inc., after the books are closed at December 31, 2014. Common Stock, $1 par value, 800,000 shares authorized, 550,000 shares Instructions Prepare the stockholders' equity section at December 31, 2014, assuming that part of retained earnings is restricted for plant expansion in the amount of $200,000.