Exam 11: Reporting and Analyzing Equity

A company declared a $0.50 per share cash dividend.The company has 20,000 shares authorized,9,000 shares issued and 8,000 shares of common stock outstanding.The journal entry to record the dividend declaration is:

Stock that is not assigned a value per share by the corporate charter is called __________________.

Authorized stock is the total number of shares outstanding.

What is treasury stock? How is the purchase and sale of treasury stock recorded?

Prior period adjustments to financial statements can result from:

The costs of bringing a corporation into existence,including legal fees,promoter fees and amounts paid to obtain a charter are called:

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 15% 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?

A corporation has 200,000 shares of $10 par value common stock outstanding.The following selected transactions related to the company's stock took place during the current year: Apr. 15 Declared a 40\% stock dividend to stockholders of record on May 1, to be issued May 10. The current market valued is \ 15 per common share. May 1 Date of record. May 10 Issued the common stock dividend. Prepare the journal entries to record these transactions.

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:

Explain how to calculate the price-earnings ratio and describe how it is used in analysis of a company's financial condition and performance.

Duke Corporation reports the following components of stockholders' equity on December 31,2010. Common stock- \ 25 par value, 100,000 shares authorized, 45,000 shares issued and outstandino \1 ,125,000 Paid-in capital in excess of par value, common stock 60,000 Retained earnings 460,000 Total stockholders' equity \ 1,645,000 In year 2011, the following transactions affected its stockholders' equity accounts. Jan. 1 Purchased 4,500 shares of its own stock at $\$ 27$ cash per share. Jan. 5 Directors declared a $\$ 3$ per share cash dividend payable on Feb. 28 to the Feb. stockholders of record. Feb. 28 Paid the dividend declared on January 5 Mar. 3 Sold 1,000 shares of treasury stock for $\$ 28$ per share May 25 Sold 1,000 shares of treasury stock for $\$ 16$ per share What is the amount in the Retained Earnings account immediately after the May 25^th sale?

A company's stock is selling for $35 per share at year-end.This current year it paid shareholders a $2.45 per share cash dividend,reported earnings per share of $12.00 and had 750,000 common shares outstanding at year-end.Calculate the company's dividend yield.

A company has a market value per share of $73.00.Its net income is $1,750,000 and the weighted-average number of shares outstanding is 350,000.The company's price-earnings ratio is equal to:

A company's board of directors' votes to declare a total cash dividend of $25,000.The company has 2,500 shares of $1 par common stock and 400 shares of 4%,$200 par preferred stock outstanding.What is the total amount that will be paid to preferred shareholders?

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.

The total amount of cash and other assets received by a corporation from its stockholders in exchange for common stock is:

The price-earnings ratio reveals information about the stock market's expectations for a company's future growth in earnings,dividends and economic opportunities.

Explain the components of the statements retained earnings and identify the special items that are reported in it.

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

A corporation had the following stock outstanding when the company's board of directors declared a $95,000 cash dividend in the current year: Preferred stock, \ 100 par, 6\%,5,000 shares issued \ 500,000 Common stock, \ 10 par, 70,000 shares issued 700,000 Total \ 1,200,000 Allocate the cash dividend between the preferred and common stockholders assuming the preferred stock is noncumulative and nonparticipating.