Duke Corporation reports the following components of stockholders' equity on December 31,2010. $\begin{array}{lr} \text {Common stock- \( \$ 25 $ par value, 100,000 shares authorized, 45,000 shares issued}\\ \text { and outstandino}&\$1,125,000\\ \text { Paid-in capital in excess of par value, common stock } & 60,000 \\ \text { Retained earnings } & 460,000 \\ \text { Total stockholders' equity } & \$ 1,645,000 \\ \end{array}\) 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 What is the amount of the dividend declared?

A) $177,000 B) $135,000 C) $121,500 D) $326,000 E) $338,500 A) $177,000 B) $135,000 C) $121,500 D) $326,000 E) $338,500

The following data has been collected about a company's stockholders' equity accounts: $\begin{array}{|l|r|} \hline \text { Common stock } \$ 10 \text { par value } 20,000 \text { shares authorized and } 10,000 \text { shares issued } & \$ 100,000 \\ \hline \text { Contributed capital in excess of par value, common stock } & 50,000 \\ \hline \text { Retained earnings } & 25,000 \\ \hline \text { Treasury stock, } 1,000 \text { shares } & 11,500\\ \hline \end{array}$ The treasury shares were all purchased at the same price. The cost per share of the treasury stock is:

A) $1.15 B) $1.28 C) $11.50 D) $10.50 E) $10.00 A) $1.15 B) $1.28 C) $11.50 D) $10.50 E) $10.00

Exam 11: Reporting and Analyzing Equity

The stockholders' equity section of a corporation's balance sheet follows: (1)Assuming that the preferred stock is not callable and no dividends are in arrears,compute the book values per preferred share and per common share. (2)Assuming that the preferred stock has a call price of $30 per share and there is one year of cumulative preferred dividends is in arrears,compute the book values per preferred share and per common share.

(Essay)

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Question 81

A stock dividend transfers:

(Multiple Choice)

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Question 82

A company issued 60 shares of $100 par value stock for $7,000 cash.The total amount of contributed capital is:

(Multiple Choice)

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Question 83

Explain how both a stock split and a stock dividend affect the computation of the weighted average number of shares outstanding.

(Essay)

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Question 84

_________________ is a corporation's own stock that has been reacquired.

(Short Answer)

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Question 85

A class of stock that does not have a par value and can usually be issued at any price without creating a minimum legal capital deficiency is called:

(Multiple Choice)

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Question 86

A company issued 7% preferred stock with a $100 par value.This means that:

(Multiple Choice)

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Question 87

A company has 500,000 common shares authorized,400,000 common shares issued and 15,000 common shares in treasury stock at the current year-end.It paid $0.24 per share in cash dividends during the year.The year-end market price of the stock is $15.Calculate (1)the total dividends paid and (2)the dividend yield.

(Essay)

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Question 88

Treasury stock is classified as:

(Multiple Choice)

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Question 89

A company has 40,000 shares of common stock outstanding.The stockholders' equity applicable to common shares is $470,000 and the par value per common share is $10.The book value per share is:

(Multiple Choice)

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Question 90

Changes in accounting estimates are accounted for in current and future periods.

(True/False)

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Question 91

A company reported stockholders' equity on January 1 of the current year as follows: Common Stock,$5 par value,1,000,000 shares authorized,600,000 shares issued; Contributed Capital in Excess of Par Value,Common Stock,$1,025,000; Retained Earnings,$2,850,000.Prepare journal entries to record the following transactions:

(Essay)

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Question 92

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 What is the amount of the dividend declared?

(Multiple Choice)

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Question 93

What are the rights generally granted to common stockholders?

(Essay)

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Question 94

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.The company declared a $2,700 dividend on its noncumulative,nonparticipating preferred stock.There were no other stock transactions.The company has an earnings per share of:

(Multiple Choice)

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Question 95

A stock option is also called a stock dividend.

(True/False)

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Question 96

The following selected transactions took place during the current year for a company: March 25 Declared a \2 per share cash dividend on 20,000 shares of common Stock outstanding. April 20 Paid the cash dividends declared on March 25. Dec. 31 Closed the \5 2,000 credit balance in Income Summary that reflects net incometo Retained Earnings. (a)Prepare the journal entries for these transactions. (b)If Retained Earnings had a $75,000 credit balance on January 1,calculate its year-end balance as of December 31.

(Essay)

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Question 97

Identify and describe the two main components of stockholders' equity.

(Essay)

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Question 98

The following data has been collected about a company's stockholders' equity accounts: Common stock \ 10 par value 20,000 shares authorized and 10,000 shares issued \ 100,000 Contributed capital in excess of par value, common stock 50,000 Retained earnings 25,000 Treasury stock, 1,000 shares 11,500 The treasury shares were all purchased at the same price. The cost per share of the treasury stock is:

(Multiple Choice)

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Question 99

Minimum legal capital requirements often prohibit dividends when the dividends reduce stockholders' equity below the minimum specified amount.

(True/False)

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Question 100

Showing 81 - 100 of 216

A stock dividend transfers:

A company issued 60 shares of $100 par value stock for $7,000 cash.The total amount of contributed capital is:

Explain how both a stock split and a stock dividend affect the computation of the weighted average number of shares outstanding.

_________________ is a corporation's own stock that has been reacquired.

A class of stock that does not have a par value and can usually be issued at any price without creating a minimum legal capital deficiency is called:

A company issued 7% preferred stock with a $100 par value.This means that:

Treasury stock is classified as:

A company has 40,000 shares of common stock outstanding.The stockholders' equity applicable to common shares is $470,000 and the par value per common share is $10.The book value per share is:

Changes in accounting estimates are accounted for in current and future periods.

What are the rights generally granted to common stockholders?

A stock option is also called a stock dividend.

Identify and describe the two main components of stockholders' equity.

Minimum legal capital requirements often prohibit dividends when the dividends reduce stockholders' equity below the minimum specified amount.

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

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