Exam 11: Reporting and Analyzing Equity

A company has $100,000 of 10% noncumulative,nonparticipating,preferred stock outstanding and $150,000 of common stock outstanding.In the company's first year of operation,no dividends were paid,but during the second year,it paid cash dividends of $25,000.Compute the dividends to be distributed to (1)preferred shares and (2)common shares.

Changes in accounting estimates are:

Prior period adjustments are reported in the:

On August 31,2010 Victory Corporation's common stock is priced at $30 per share before any stock dividend or split,and the stockholders' equity section of its balance sheet appears as follows.Assume that the company declares and immediately distributes a 100% stock dividend Common stock- $\$ 7$ par value, 95,000 shares authorized, 38,000 shares issued and outstanding \ 266,000 Paid-in capital in excess of par value, common stock 100,000 Retained earnings 366,000 Total stockholders' equity \ 732,000 What is the total amount in the Common Stock account immediately after the stock dividend?

Shamrock Company had net income of $30,000.On January 1,there were 8,000 shares of common stock outstanding.On April 1,the company issued an additional 2,000 shares of common stock.There were no other stock transactions.The company has an earnings per share of:

A company reported $990,000 in net income for the current year.Total weighted-average number of common shares outstanding are equal to 150,000 shares and the year-end market price is $79.20 per common share.Calculate the company's price earnings ratio.

__________________________ is the annual amount of cash dividends distributed to common shareholders relative to the stock's market price.

On August 31,2010 Victory Corporation's common stock is priced at $30 per share before any stock dividend or split,and the stockholders' equity section of its balance sheet appears as follows.Assume that the company declares and immediately distributes a 100% stock dividend. Common stock- $\$ 7$ par value, 95,000 shares authorized, 38,000 shares issued and outstanding \ 266,000 Paid-in capital in excess of par value, common stock 100,000 Retained earnings 366,000 Total stockholders' equity \ 732,000 What is the total amount in the Retained Earnings account immediately after the stock dividend?

On July 31,a corporation reported the following stockholders' equity: Common stock, \ 10 par value, 200,000 shares authorized, 100,000 shares issued and outstanding \ 1,000,000 Retained earnings 350,000 Total stockholders' equity \ 1,350,000 On July 31,the market value of the corporation's stock was $15 per share.The directors were considering declaring a 10% or 30% stock dividend but wanted to know what effect each stock dividend would have on stockholders' equity.Calculate the balances in the following accounts for each proposed stock dividend distribution.

A company's only treasury stock transactions for the current year are as follows: (1)1,000 shares of its common stock were purchased on June 1 for $40,000; (2)On July 1 it reissued 500 of these shares at $45 per share; (3)On August 1 it reissued the 500 remaining treasury shares at $38 per share. 1)Prepare the journal entries required to record these transactions. 2)Calculate the balance in Contributed Capital,Treasury Stock,on September 1 assuming its beginning-year balance is zero.

A newly formed company sold stock for $545,000.The shares had a par value of $5 each.After the transaction,the paid in capital,common stock account had a balance of $215,000.How many shares did the company sell?

The cumulative net income and loss retained by a corporation is called _____________________.

A liquidating dividend is:

Stockholders who are not officers or managers of a corporation do not have the power to bind the corporation to contracts.This is called ______________________.

The total amount of stock that a corporation's charter allows it to issue is referred to as:

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

Pete's outstanding stock consists of (a)17,000 shares of noncumulative 7.50% preferred stock with a $10 par value and (b)42,500 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. 2010 \ 0 2011 28,000 2012 100,000 2013 198,000 What is the amount of dividends that the Common Stockholders receive in 2011?

A company has net income of $2,800,000.It also has 400,000 weighted-average common shares outstanding and a price-earnings ratio of 20.What is the market value per share of this company's stock?

Common stock always carries a preference for receiving dividends over preferred stock.