Exam 11: Reporting and Analyzing Stockholders Equity

During May, 2016, Backyard Corporation announced a 4-for-1 stock split. This brought the number of shares outstanding from 25,792,000 shares to _____ shares, and its $1.20 par value to _____ per share.

In October, 2016, Sirius Corporation distributed profits to its preferred shareholders before its common shareholders. What is the name of the preference that allows this?

Amusement Corporation reports the following components of its comprehensive income in its 2016 consolidated statements of shareholders' equity ($ in millions): Identify the primary sources of comprehensive income, and explain why comprehensive income is a more inclusive notion of company performance than net income alone.

Following is the stockholder's equity section of Magnificent Molding, Inc. at December 31, 2016: A. Compute the number of shares that have been issued. B. At what average issue price were the shares issued? C. At what average cost were the treasury stock purchased?

Use the following information to prepare the shareholders' equity section of the balance sheet for Parish Incorporated: A. Common Stock-$0.30 par value: 60,000 shares authorized, 25,000 shares outstanding as of December 31, 2016 B. Retained Earnings, December 31, 2016-$68,000 C. Treasury Stock-Parish repurchased 3,000 shares at $50 per share D. Total Shareholders' Equity as of December 31, 2016 is $540,000

If a company feels that its shares are undervalued and it wants to send a signal to the market, the company may:

Stone Company reported net income of $2,536 million in 2016. The weighted average number of common shares outstanding during 2016 was 554 million shares. Brook paid $80 million in dividends on preferred stock, which was convertible into 20 million shares of common stock. How much is basic earnings per share amount for 2016?

Stay Fit Company has $1,600 of convertible bonds with an unamortized premium of $120. The bonds are converted into 100 shares of $2 par value common stock. A. What is the effect of this conversion on the balance sheet? B. What is the effect of this conversion on the income statement? C. What is one benefit and one cost of the conversion privilege of a security?

Schulze has 600,000 shares of $2 par value common stock outstanding. The current market price of the stock is $150 per share. Schulze distributes a small stock dividend of 15% of the outstanding shares of common stock. Record the financial statement effects of the stock dividend in the financial statement template.

Earned capital includes the positive or negative effects of accumulated other comprehensive income.

What is the net book value of the company that is available to common shareholders called?

Sarina Company plans to issue a large stock dividend. In accounting for this transaction, what effects occur to the contributed capital section of stockholders' equity?

Ember Company had the following transactions: Year 1: Ember Company sells 20,000 shares of its no-par common stock for $30. Year 2: Ember Company buys 2,000 shares of its no-par common stock for $24 per share. Year 3: Ember Company declares and pays a dividend on its no-par common stock of $6 per share. The company's basic earnings per share were $16 in the third year. Indicate the effect (increase, decrease, no effect) of each of these stock decisions for each year on the items listed below.

Harvey Company has 30,000 shares of $150 par value, 8% cumulative preferred stock and 160,000 shares of $60 par value common stock. Harvey declares and pays cash dividends amounting to $640,000. If no arrearage on the preferred stock exits, how much in total dividends is paid to each class of stock?

The conversion feature of stock has a value even if it not detachable for sale under IFRS.