Exam 11: Reporting and Interpreting Stockholders Equity

In an IPO on May 1,2009,Timmy Hilfigure purchased 1,000 shares of Abner Crummie,Inc.for $5,000.On April 30,2015,Timmy Hilfigure sold the 1,000 shares for $8,000 to Ralph Loring.What is the effect of the sale on April 30,2015?

The effect of a stock dividend is to:

EPS is a good predictor of:

Large stock dividends are recorded at ______ and small stock dividends are recorded at ______.

A corporate charter specifies that the company may sell up to 20 million shares of stock.The company sells 12 million shares to investors and later buys back 3 million shares.The current number of outstanding shares after these transactions have been accounted for is:

A corporate charter specifies that the company may sell up to 20 million shares of stock.The company issues 12 million shares to investors and later repurchases 3 million shares.The number of issued shares after these transactions have been accounted for is:

A partnership:

Contributed capital totals $30,000,Retained Earnings equals $65,000,Treasury Stock equals $18,000,and Common Stock equals $10,000.If the company does not have any accumulated other comprehensive income (loss),stockholders' equity,what is the total amount of stockholders' equity?

Which one of the following events would not require a journal entry on a corporation's books?

The return on equity ratio is calculated as:

What effect does the purchase of treasury stock have on the balance sheet?

A company sells 1 million shares of common stock with no par value for $15 a share.In recording the transaction,it would debit:

Which of the following statements about the declaration and payment of cash dividends is correct?

A corporation's board of directors could prefer a stock split to a stock dividend because a stock split:

Marble Corporation had the following balances in its stockholders' equity accounts at December 31,2015:  The following transactions occurred during 2016:    ?Required: Based on the above information,prepare a statement of stockholders' equity for 2016.

Earnings per share (EPS)can be affected by all of the following except:

Tyler Corporation was organized in 2015.Its corporate charter authorized the issuance of 50,000 shares of common stock,par value $5 per share,and 10,000 shares of 8% preferred stock,par value $25 per share.The following transactions took place during 2015: Required: Part a.Prepare journal entries for each of the following transactions: Part b.Compute the number of shares of common stock issued and outstanding at December 31,2015.

Typically,a profitable company that pays little or no dividends:

Which of the following statements about stock dividends is correct?

Preferred stock is generally classified as stockholders' equity under both GAAP and IFRS.