Exam 11: Reporting and Analyzing Stockholders Equity

The par value of common stock must always be equal to its market value on the date the stock is issued.

A small stock dividend is defined as

The following data is available for BOX Corporation at December 31, 2014: Based on the data, how many shares of common stock are issued?

Lindy Corporation has 1,000,000 authorized shares of $20 par value common stock. As of June 30, 2014, there were 600,000 shares issued and outstanding. On June 30, 2014, the board of directors declared a $0.50 per share cash dividend to be paid on August 1, 2014. Instructions Prepare the necessary journal entries to be recorded on (a) the date of declaration, (b) the date of record, and (c) the date of payment.

Common Stock Dividends Distributable is classified as a(n)

The Huntsman Corporation has the following stockholders' equity accounts: Preferred Stock Paid-in Capital in Excess of Par Value-Preferred Stock Common Stock Paid-in Capital in Excess of Stated Value-Common Stock Retained Earnings Treasury Stock-Common Instructions Classify each account using the following tabular alignment.

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?

The stockholders' equity section of Piper Corporation's balance sheet at December 31, 2013, appears below: Stockholders' equity Paid-in capital Common stock, $10 par value, 400,000 shares authorized; During 2014, the following stock transactions occurred: Jan. 18 Issued 80,000 shares of common stock at $23 per share. Aug. 20 Purchased 20,000 shares of Piper Corporation's common stock at $25 per share to be held in the treasury. Instructions (a) Prepare the journal entries to record the above stock transactions. (b) Prepare the stockholders' equity section of the balance sheet for Piper Corporation at December 31, 2014. Assume that net income for the year was $150,000 and that no dividends were declared.

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 correct entry to be recorded on August 15, 2014, will include a

The following information is available for Epstein Corporation Instructions Compute the payout ratio and return on common stockholders' equity for both years. Briefly comment on your findings.

A large stock dividend and stock split can frequently have the same effect on the market price of a corporation's stock. Explain how stock dividends and stock splits affect the market price of a corporation's stock.

The following information pertains to Benedict Company. Assume that all balance sheet amounts represent average balance figures. MC: 199 (count) Preferred dividends 4,000 What is the return on common stockholders' equity ratio for Benedict?

Of the four dividends types, the two most common types in practice are

On January 1, Swanson Corporation had 80,000 ordinary shares with a €10 par value outstanding. On March 17, the company declared a 15% share dividend to shareholders of record on March 20. Market value of the shares was €13 on March 17. The shares were distributed on March 30. The entry to record the transaction of March 30 would include a

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.

The authorized stock of a corporation

A company would not acquire treasury stock

From the information below, compute the payout ratio for Kevin's Trailers.

Identify (by letter) each of the following characteristics as being an advantage or a disadvantage of the corporate form of business or not applicable to the corporate form of business organization. A = Advantage D = Disadvantage N = Not Applicable Characteristics

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