Exam 11: Reporting and Analyzing Equity

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 35% 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 Paid in Capital account immediately after the stock dividend?

A company is authorized to issue 50,000 shares of $50 par value,8%,cumulative,fully participating preferred stock and 750,000 shares of $5 par value common stock.Prepare journal entries to record the following selected transactions that occurred during the company's first year of operations: May 5 Exchanged 2,000 shares of preferred stock for a building with a market value of $135,000. July 20 Sold 1,550 shares of preferred stock for $50 cash per share. Dec.20 Sold 1,000 shares of preferred stock at $55 cash per share.

A company has 200,000 shares of $1 par value common stock and 20,000 shares of 7%,$100 par,cumulative preferred stock outstanding.The balance in Retained Earnings account at the beginning of the year was $1,500,000 and one year's dividends were in arrears.Net income for the current year was $2,000,000.If the company paid a dividend of $3 per share on its common stock,what is the balance in Retained Earnings account at the end of the year?

A corporation had 50,000 shares of $20 par value common stock outstanding on July 1.Later that day the board of directors declared a 10% stock dividend when the market value of each share was $27.The entry to record this dividend is:

The least amount that the buyers of stock must contribute to the corporation or be subject to paying at a future date is called ____________________________.

Xtreme Sports has $100,000 of 8% noncumulative,nonparticipating,preferred stock outstanding.Xtreme Sports also has $500,000 of common stock outstanding.In the company's first year of operation,no dividends were paid.During the second year,Xtreme Sports paid cash dividends of $30,000.This dividend should be distributed as follows:

A corporation issued 5,000 shares of $10 par value common stock in exchange for some land with a market value of $60,000.The entry to record this exchange is:

A corporation is responsible for its; own acts and debts as the corporation is considered a ____________________________________.

A company paid $0.75 in cash dividends per share.It has an earnings per share of $3.50 and a market price per share of $37.50.Its dividend yield equals:

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 Paid in Capital account immediately after the stock dividend?

Record the following transactions of a company in general journal form: (a)Reacquired 8,000 of its own $10 par value common stock at $40 cash per share.The stock was originally issued at $15 per share. (b)Sold 2,000 shares of the stock reacquired under part (a)at $43 cash per share. (c)Sold 3,000 shares of the stock reacquired under part (a)at $39 cash per share.

Premier's outstanding stock consists of (a)57,000 shares of cumulative 4.25% preferred stock with a $18 par value and (b)75,000 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. 2010 \ 0 2011 38,000 2012 150,000 2013 175,000 What is the amount of dividends that the Common Stockholders receive for all years presented?

Dividend yield is defined as the market price per share of a company's stock divided by its earnings per share.

The _______________________ protects stockholders' proportional interest in a corporation by allowing them to purchase their proportional share of any common stock later issued by the corporation.

_____________________ preferred stock has a feature that allows preferred stockholders to share with common stockholders in any dividends paid in excess of the percent or dollar amount stated on the preferred stock.

A company paid $0.48 in cash dividends per share.It has an earnings per share of $4.20 and a market price per share of $30.00.Its dividend yield equals:

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 What is the journal entry required for the March 3^rd transaction?

A company reported net income of $850,000 for the current year.The year-end market price per common share was $12 and there were 425,000 weighted-average shares of common stock outstanding.Calculate the company's price-earnings ratio.

_________________________ has special rights that give it priority or senior status over common stock in one or more areas such as receiving dividends or for the distribution of assets if the corporation is liquidated.