FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 18: Shareholders Equity

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 51

Multiple Choice

Review LaterAdd Note

Review Later

Preferred stock is called preferred because it usually has two preferences.These preferences relate to:

A) Dividends and voting rights.
B) Par value and dividends.
C) The preemptive right and voting rights.
D) Assets at liquidation and dividends.

E) C) and D)
F) B) and D)

Correct Answer

verified

Show Answer

Question 52

True/False

Review LaterAdd Note

Review Later

Stock dividends cause a reduction in retained earnings,but they never reduce total shareholders' equity.

A) True
B) False

Correct Answer

verified

Show Answer

Question 53

Essay

Review LaterAdd Note

In 2016,Poe's Products completed the treasury stock transactions described below. January 2: Reacquired 10 million shares at $16 per share. February 15: Sold 3 million shares at $20 per share. September 20: Sold 3 million treasury shares at $15 per share. Poe had issued 50 million shares of its $1 par common stock for $18 several years ago. Required: Record the above transactions,assuming that Poe's Products uses the cost method.

The board of directors of Capstone Inc.declared a $0.60 per share cash dividend on its $1 par common stock.On the date of declaration,there were 50,000 shares authorized,20,000 shares issued,and 5,000 shares held as treasury stock.What is the entry for the dividend declaration?

Identify the three common forms of business organization and the primary difference in the way we account for them.

Dividends in arrears on cumulative preferred stock are liabilities to be paid at a later date.

The 2017 sale of half of the treasury stock would:

On September 15,2016,the Scottie Company board of directors declared a 10% stock dividend on common shares.The shares are to be distributed on October 10,2016,to shareholders of record on October 1,2016.The market price per share on the date of declaration was $24 while the market price on the date of distribution was $26.The common stock has a par value of $5 per share and there were 1,000,000 shares outstanding prior to the declaration of the stock dividend. Required: Prepare any necessary journal entries to record the above transactions.

Montgomery & Co. ,a well-established law firm,provided 500 hours of its time to Fink Corporation in exchange for 1,000 shares of Fink's $5 par common stock.Montgomery's usual billing rate is $700 per hour,and Fink's stock has a book value of $250 per share.By what amount will Fink's paid-in capital-excess of par increase for this transaction?

The shareholders' equity of Green Corporation includes $200,000 of $1 par common stock and $400,000 par value of 6% cumulative preferred stock.The board of directors of Green declared cash dividends of $50,000 in 2016 after paying $20,000 cash dividends in each of 2015 and 2014.What is the amount of dividends common shareholders will receive in 2016?

Characteristics of the corporate form that have led to the growth of this form of business ownership include all of the following except:

Authorized common stock refers to the total number of shares:

The shareholders' equity of Crystal Company includes the items shown below.The board of directors of Crystal declared cash dividends of $3 million,$6 million,and $50 million in each of its first three years of operation: 2014,2015,and 2016,respectively. Common stock,$1 par,50,000,000 shares outstanding Preferred stock,6%,$100 par,1,000,000 shares outstanding Required: Determine the amount of dividends per share on preferred and common stock for each of the three years.The preferred stock is cumulative and nonparticipating.

At the beginning of 2014,Emily Corporation issued 10,000 shares of $100 par,5%,cumulative,preferred stock for $110 per share.No dividends have been paid to preferred or common shareholders.What amount of dividends will a preferred shareholder owning 100 shares receive in 2016 if Emily pays $1,000,000 in dividends?

The shareholders' equity of Tru Corporation includes $600,000 of $1 par common stock and $1,200,000 par value of 6% cumulative preferred stock.The board of directors of Tru declared cash dividends of $150,000 in 2016 after paying $60,000 cash dividends in each of 2015 and 2014. Required: What is the amount of dividends common shareholders will receive in 2016?

Indicate by letter whether each of the terms or phrases listed below is more associated with financial statements prepared in accordance with U.S.GAAP (U)or International Financial Reporting Standards (I). Terms and phrases Preferred stock Investment revaluation reserve Liabilities listed after Equity in the balance sheet (statement of financial position) Accumulated other comprehensive income Asset revaluation reserve Share premium Equity listed after Liabilities in the balance sheet (statement of financial position) Share premium Net gains (losses)on investments-AOCI Paid-in capital-excess of par Ordinary shares Preference shares Common stock

Poodle Corporation was organized on January 3,2016.The firm was authorized to issue 100,000 shares of $5 par common stock.During 2016,Poodle had the following transactions relating to shareholders' equity: Issued 30,000 shares of common stock at $7 per share. Issued 20,000 shares of common stock at $8 per share. Reported a net income of $100,000. Paid dividends of $50,000. What is total paid-in capital at the end of 2016?

The par value of common stock represents:

When stock traded on an active exchange is issued for a machine:

Use the following to answer questions The 12/31/2016 balance sheet of Despot Inc.included the following: -In January 2016,Despot recorded a transaction with this journal entry: The transaction was for the: