Question 1

_____________________ is the price at which a stock is bought and sold.

Accepted Answer

Market value per share (or market value)

Question 2

Stated value of no-par stock is:

Accepted Answer

A) Another name for redemption value 
B) An amount assigned to par value stock by the state of incorporation 
C) The market value of the stock on the date of issuance 
D) The difference between the par value of stock and the amount below or above par value contributed by the stockholder 
E) An amount assigned to no-par stock by the corporation's board of directors 
A) Another name for redemption value 
B) An amount assigned to par value stock by the state of incorporation 
C) The market value of the stock on the date of issuance 
D) The difference between the par value of stock and the amount below or above par value contributed by the stockholder 
E) An amount assigned to no-par stock by the corporation's board of directors E

Question 3

Dawls Corporation reported stockholders' equity on December 31 of the prior year as follows:
 $\begin{array}{|l|r|}
\hline\begin{array}{l}
\text { Common stock, } \$ 5 \text { par value, } 1,000,000 \text { shares authorized, } 500,000 \text { shares } \
\text { issued }
\end{array} & \$ 2,500,000 \
\hline \text { Contributed capital in excess of par, common stock } & 1,000,000 \
\hline \text { Retained earnings } & 3,000,000\
\hline
\end{array}$
 
The following selected transactions occurred during the current year:
 $\begin{array}{|l|l|}
\hline \text { Feb. 15 } & \begin{array}{l}
\text { The board of directors declared a 5\% stock dividend to stockholders of record on } \
\text { March 1, payable March 20. The stock was selling for } \$ 8 \text { per share. }
\end{array} \
\hline \text { Mar. 9 } & \text { Paid the stock dividend. } \
\hline \text { May 1 } & \begin{array}{l}
\text { A cash dividend of } \$ 0.30 \text { per share was declared by the board of directors to } \
\text { stockholders of record on May 20, payable June 1. }
\end{array} \
\hline \text { June 1 } & \text { Paid the cash dividend. } \
\hline \text { Aug . 20 } & \text { The board decided to split the stock 4-for-1, effective on September 1. } \
\hline \text { Sept. 1 } & \text { Stock split 4-for-1. } \
\hline \text { Dec. 31 } & \text { Earned a net income of } \$ 800,000 \text { for the current year. }\
\hline 
\end{array}$ 
Prepare a statement of retained earnings as of December 31 of the current year.

Accepted Answer

$\begin{array}{c}
\text {Dawls Corporation}\
\text { Statement of Retained Earnings }\
\text {For the Year Ended December 31}\
\begin{array}{|l|r|r|} 
\hline\text { Retained earnings, December } 31 \text { (prior year) } & & \$ 3,000,000 \
\hline \text { Plus net income } & & 800,000 \
\hline \text { Less: } & &\
\hline \text { Stock dividend (500,000 shares x 5\% x \$8) } & \$(200,000) & \
\hline \text { Cash dividend (525,000 shares x } \$ 0.30) & (157,500) & (357,500) \
\hline \text { Retained earnings, December 31 (current year) } & & \$ 3,442,500 \
\hline
\end{array}\end{array}$

Question 4

A corporation had current year net income of $2,375,000.It paid preferred dividends of $80,000 cash and had 500,000 weighted-average shares of common stock outstanding.Calculate the corporation's earnings per share.

Accepted Answer

($2,375,00

Question 5

A corporation paid a cash dividend of $0.07 per share during the current year.It had 550,000 common shares outstanding at year-end,the current year earnings per share was $3.85 and the stock's year-end market price was $17.50 per share.Calculate the company's dividend yield.

Accepted Answer

The answer of A corporation paid a cash dividend of...

Question 6

The account used to record a premium on issued stock is titled ______________________________________________.

Accepted Answer

Contribute

Question 7

A corporation's minimum legal capital is often defined to be the total par value of the shares:

Accepted Answer

A) Issued 
B) Authorized 
C) Subscribed 
D) Outstanding 
E) In treasury 
A) Issued 
B) Authorized 
C) Subscribed 
D) Outstanding 
E) In treasury

Question 8

On August 1,a corporation issued 15,000 shares of no-par common stock in exchange for a tract of land with a market value of $215,000.The common stock has a stated value of $10 per share.Prepare the general journal entry to record this transaction.

Accepted Answer

None

Question 9

Explain the preparation of journal entries to record the issuance of par value,stated value and no-par value common stock.

Accepted Answer

When stock is issued for cash,cash is de

Question 10

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.

Accepted Answer

\[\begin{array} { | l | l | l | l | } 
\

Question 11

When all of the authorized shares have the same rights and characteristics,the stock is called:

Accepted Answer

A) Preferred stock 
B) Common stock 
C) Par value stock 
D) Stated value stock 
E) No-par value stock 
A) Preferred stock 
B) Common stock 
C) Par value stock 
D) Stated value stock 
E) No-par value stock

Question 12

A corporation had 40,000 shares of $10 par value common stock outstanding on August 1.Later that day,the board of directors declared a 9% stock dividend when the market value of each share was $72.The entry to record this dividend is:

Accepted Answer

A) 
$$\begin{array} { | l | r | r | } 
\hline \text { Retained Earnings } & 259,200 & \
\hline \text { Common Stock Dividend Distributable } & & 259,200 \
\hline
\end{array}$$ 
B) 
$$\begin{array} { |l| r | r | } 
\hline \text { Retained Earnings } & 259,200 & \
\hline \text { Common Stock Dividend Distributable } & & 259,200 \
\hline
\end{array}$$ 
C) 
$$\begin{array} { |l | r | r | } 
\hline \text { Retaired Earning } & 259,200 & \
\hline \text { Common Stock Dividend Distributable } & & 3 6 , 0 0 0  \
\hline \begin{array} { l } 
\text { Contributed Capital in Excess of Par Value } \
\text { Common Stock }
\end{array} & & 223,200\
\hline
\end{array}$$ 
D) 
$\begin{array}{|l|r|r|}
\hline \text { Retained Earnings } & 36,000 & \
\hline \text { Common Stock Dividend Distributable } & & 36,000 \
\hline
\end{array}$ 
E) No entry is made until the stock is issued 
A) 
$$\begin{array} { | l | r | r | } 
\hline \text { Retained Earnings } & 259,200 & \
\hline \text { Common Stock Dividend Distributable } & & 259,200 \
\hline
\end{array}$$ 
B) 
$$\begin{array} { |l| r | r | } 
\hline \text { Retained Earnings } & 259,200 & \
\hline \text { Common Stock Dividend Distributable } & & 259,200 \
\hline
\end{array}$$ 
C) 
$$\begin{array} { |l | r | r | } 
\hline \text { Retaired Earning } & 259,200 & \
\hline \text { Common Stock Dividend Distributable } & & 3 6 , 0 0 0  \
\hline \begin{array} { l } 
\text { Contributed Capital in Excess of Par Value } \
\text { Common Stock }
\end{array} & & 223,200\
\hline
\end{array}$$ 
D) 
$\begin{array}{|l|r|r|}
\hline \text { Retained Earnings } & 36,000 & \
\hline \text { Common Stock Dividend Distributable } & & 36,000 \
\hline
\end{array}$ 
E) No entry is made until the stock is issued

Question 13

_______________________ are responsible for and have final authority for managing a corporation's activities.

Accepted Answer

The board

Question 14

_____________________ is a general term that refers to any shares issued to obtain owner financing in a corporation.

Accepted Answer

The answer of _____________________ is a general term that refers...

Question 15

What is an extraordinary gain or loss? How is it presented on a complete income statement? Be sure to include examples of extraordinary items.

Accepted Answer

An extraordinary gain or loss is one tha

Question 16

Stock that was reacquired by the company and is still held by the issuing corporation is called:

Accepted Answer

A) Capital stock 
B) Treasury stock 
C) Redeemed stock 
D) Preferred stock 
E) Callable stock 
A) Capital stock 
B) Treasury stock 
C) Redeemed stock 
D) Preferred stock 
E) Callable stock

Question 17

Earnings per share is calculated by dividing the total number of common shares outstanding by net income.

Accepted Answer

A) True 
 B)False

Question 18

A premium on common stock:

Accepted Answer

A) Is the amount paid in excess of par by purchasers of newly issued stock 
B) Is the difference between par value and issue price when the amount paid is below par 
C) Represents profit from issuing stock 
D) Represents capital gain on sale of stock 
E) Is prohibited in most states 
A) Is the amount paid in excess of par by purchasers of newly issued stock 
B) Is the difference between par value and issue price when the amount paid is below par 
C) Represents profit from issuing stock 
D) Represents capital gain on sale of stock 
E) Is prohibited in most states

Question 19

On January 1,Style Corporation had 15,000 shares of common stock outstanding.On May 1,the corporation sold and issued another 6,000 shares.On December 1,the corporation executed a 2-for-1 stock split.Style Corporation earned $55,000 in net income for the year and declared and paid $4,000 in preferred stock dividends.Calculate the earnings per share.

Accepted Answer

Weighted average number of shares outsta

Question 20

A corporation has $1,750,000 in stockholders' equity and 350,000 shares of common stock outstanding.Calculate the book value per common share.

Accepted Answer

$1,750,000/350,000 s

_____________________ is the price at which a stock is bought and sold.

Stated value of no-par stock is:

A corporation had current year net income of $2,375,000.It paid preferred dividends of $80,000 cash and had 500,000 weighted-average shares of common stock outstanding.Calculate the corporation's earnings per share.

A corporation paid a cash dividend of $0.07 per share during the current year.It had 550,000 common shares outstanding at year-end,the current year earnings per share was $3.85 and the stock's year-end market price was $17.50 per share.Calculate the company's dividend yield.

The account used to record a premium on issued stock is titled ______________________________________________.

A corporation's minimum legal capital is often defined to be the total par value of the shares:

On August 1,a corporation issued 15,000 shares of no-par common stock in exchange for a tract of land with a market value of $215,000.The common stock has a stated value of $10 per share.Prepare the general journal entry to record this transaction.

Explain the preparation of journal entries to record the issuance of par value,stated value and no-par value common stock.

When all of the authorized shares have the same rights and characteristics,the stock is called:

A corporation had 40,000 shares of $10 par value common stock outstanding on August 1.Later that day,the board of directors declared a 9% stock dividend when the market value of each share was $72.The entry to record this dividend is:

_______________________ are responsible for and have final authority for managing a corporation's activities.

_____________________ is a general term that refers to any shares issued to obtain owner financing in a corporation.

What is an extraordinary gain or loss? How is it presented on a complete income statement? Be sure to include examples of extraordinary items.

Stock that was reacquired by the company and is still held by the issuing corporation is called:

Earnings per share is calculated by dividing the total number of common shares outstanding by net income.

A premium on common stock:

A corporation has $1,750,000 in stockholders' equity and 350,000 shares of common stock outstanding.Calculate the book value per common share.

Introducing Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Cash and Internal Controls

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Cash Flows

Analyzing and Interpreting Financial Statements

Investments and International Operations

Reporting and Analyzing Partnerships

Reporting and Preparing Special Journals

Filters

Exam 11: Reporting and Analyzing Equity

_____________________ is the price at which a stock is bought and sold.

Stated value of no-par stock is:

A corporation had current year net income of $2,375,000.It paid preferred dividends of $80,000 cash and had 500,000 weighted-average shares of common stock outstanding.Calculate the corporation's earnings per share.

A corporation paid a cash dividend of $0.07 per share during the current year.It had 550,000 common shares outstanding at year-end,the current year earnings per share was $3.85 and the stock's year-end market price was $17.50 per share.Calculate the company's dividend yield.

The account used to record a premium on issued stock is titled ______________________________________________.

A corporation's minimum legal capital is often defined to be the total par value of the shares:

On August 1,a corporation issued 15,000 shares of no-par common stock in exchange for a tract of land with a market value of $215,000.The common stock has a stated value of $10 per share.Prepare the general journal entry to record this transaction.

Explain the preparation of journal entries to record the issuance of par value,stated value and no-par value common stock.

When all of the authorized shares have the same rights and characteristics,the stock is called:

A corporation had 40,000 shares of $10 par value common stock outstanding on August 1.Later that day,the board of directors declared a 9% stock dividend when the market value of each share was $72.The entry to record this dividend is:

_______________________ are responsible for and have final authority for managing a corporation's activities.

_____________________ is a general term that refers to any shares issued to obtain owner financing in a corporation.

What is an extraordinary gain or loss? How is it presented on a complete income statement? Be sure to include examples of extraordinary items.

Stock that was reacquired by the company and is still held by the issuing corporation is called:

Earnings per share is calculated by dividing the total number of common shares outstanding by net income.

A premium on common stock:

A corporation has $1,750,000 in stockholders' equity and 350,000 shares of common stock outstanding.Calculate the book value per common share.

Introducing Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Cash and Internal Controls

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Cash Flows

Analyzing and Interpreting Financial Statements

Investments and International Operations

Reporting and Analyzing Partnerships

Reporting and Preparing Special Journals

Filters