Exam 11: Reporting and Analyzing Equity

A company had a beginning balance in retained earnings of $43,000.It had net income of $6,000 and paid out cash dividends of $5,625 in the current period.The ending balance in retained earnings account is equal to:

Authorized stock is the total number of shares outstanding.

When preferred stock is cumulative and the directors either do not declare a dividend to preferred stockholders or declare one that does not cover the total amount of cumulative dividends,the unpaid amount is called ____________________________.

A company's outstanding stock consists of (a) 67,000 shares of cumulative 5% preferred stock with a $20 par value and (b) 95,000 shares of common stock with a $1 par value.During its first four years of operation,the corporation declared and paid the following total cash dividends: What is the amount of dividends that the common stockholders receive for all years presented?

Preferred stock that the issuing corporation at its option may retire by paying a specified amount to the preferred stockholders plus any dividends in arrears is called:

A corporation issued 6,000 shares of its $10 par value common stock in exchange for land that has a market value of $84,000.The entry to record this transaction would include:

A corporation declared and issued a 15% stock dividend on November 1.The following up-to-date information was available immediately prior to the dividend: The amount that total stockholders' equity will increase (decrease) as a result of recording this stock dividend is:

_______________________________ is the total amount of cash and other assets received by the corporation from its stockholders in exchange for common stock.

Earnings per share is the amount of income earned per share of a company's outstanding (weighted-average) common stock.

When a company declares cash dividends,retained earnings is reduced.

A company had stockholders' equity on January 1 as follows: Common Stock,$10 par value,1,000,000 shares authorized,250,000 shares issued; Contributed Capital in Excess of Par Value,Common Stock,$750,000 and Retained Earnings of $2,700,000.On May 20,$1,500,000 worth of retained earnings was appropriated for a plant expansion to be constructed next year.Prepare the journal entry to record the appropriation.

The Discount on Common Stock account reflects:

___________________________ are corrections of material errors in prior period financial statements.

Garden State issued 10,000 shares of $10 par preferred stock for $19 per share.How would the company record this transaction?

Explain the difference between a large stock dividend and a small stock dividend.In addition,explain how to record these two types of stock dividends.

A corporation issued 300 shares of its $5 par value common stock in payment of a $1,800 charge from its accountant for assistance in filing its charter with the state.The entry to record this transaction will include:

A company has net income of $3,000,000.It has 600,000 weighted-average common shares outstanding and a price-earnings ratio of 17.What is the market value per share of this company's stock?

A corporation's distribution of additional shares of its own stock to its stockholders without the receipt of any payment in return is called a:

Par value of a stock refers to the:

A company has 1,000 shares of $100 par preferred stock.It also has 25,000 shares of common stock outstanding and its total stockholders' equity equals $500,000.The book value per common share is: