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On January 10,a corporation purchased 5,000 shares of its own common stock at $17.50 per share.On August 4,a total of 1,000 treasury shares were sold at $19.00 per share.These are the only treasury stock transactions ever made by the corporation.Prepare the journal entries required on January 10 and August 4.

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A company was organized in January 2012 and has 2,000 shares of $100 par value,10%,nonparticipating preferred stock outstanding and 30,000 shares of $10 par value common stock outstanding.It has declared and paid cash dividends each year as shown below.Calculate the total dividends distributed to each class of stockholder under each of the assumptions given. A company was organized in January 2012 and has 2,000 shares of $100 par value,10%,nonparticipating preferred stock outstanding and 30,000 shares of $10 par value common stock outstanding.It has declared and paid cash dividends each year as shown below.Calculate the total dividends distributed to each class of stockholder under each of the assumptions given.

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Preferred dividend: 2,000 shares x $100 ...

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Duke Corporation reports the following components of stockholders' equity on December 31,2013: Duke Corporation reports the following components of stockholders' equity on December 31,2013: What is the amount of the dividend declared? A) $177,000 B) $135,000 C) $121,500 D) $326,000 E) $338,500 Duke Corporation reports the following components of stockholders' equity on December 31,2013: What is the amount of the dividend declared? A) $177,000 B) $135,000 C) $121,500 D) $326,000 E) $338,500 What is the amount of the dividend declared?


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

F) B) and E)
G) B) and D)

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On August 31,2013,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. On August 31,2013,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. -What is the total amount in the Common Stock account immediately after the stock dividend? A) $266,000 B) $532,000 C) $1,140,000 D) $874,000 E) $0 -What is the total amount in the Common Stock account immediately after the stock dividend?


A) $266,000
B) $532,000
C) $1,140,000
D) $874,000
E) $0

F) None of the above
G) All of the above

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Xtreme Sports has $100,000 par,8% noncumulative,nonparticipating,preferred stock outstanding.Xtreme Sports also has $500,000 par 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) $8,000 preferred; $22,000 common.
B) $16,000 preferred; $14,000 common.
C) $7,500 preferred; $22,500 common.
D) $15,000 preferred; $15,000 common.
E) $0 preferred; $30,000 common.

F) A) and E)
G) A) and D)

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

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Stockholders' equity consists of two mai...

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Standard Corp.repurchased 1,000 shares of its $1 par value common stock on the market when it was trading for $16 per share.How would the company record this transaction?


A) Debit Treasury Stock for $1,000 and credit Cash for $1,000.
B) Debit Treasury Stock,Common for $1,000 and credit Cash for $1,000.
C) Debit Treasury Stock,$1 Par Value for $16,000 and credit 16 for $16,000.
D) Debit Treasury Stock,Common for $16,000 and credit Cash for $16,000.
E) Debit Retained Earnings for $16,000 and credit Treasury Stock,Common for $16,000.

F) A) and B)
G) A) and E)

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Preferred stock on which the right to be paid both the current and all prior periods' unpaid dividends before any dividend is paid to common stockholders is called:


A) Noncumulative preferred stock
B) Participating preferred stock
C) Callable preferred stock
D) Cumulative preferred stock
E) Convertible preferred stock

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

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A corporation was formed on January 1.The corporate charter authorized 100,000 shares of $10 par value common stock.During the first month of operation,the corporation issued 300 shares to its attorneys in payment of a $5,000 charge for drawing up the articles of incorporation.The entry to record this transaction would include:


A) A debit to Organization Expenses for $3,000.
B) A debit to Organization Expenses for $5,000.
C) A credit to Common Stock for $5,000.
D) A credit to Contributed Capital in Excess of Par Value,Common Stock,for $5,000.
E) A debit to Contributed Capital in Excess of Par Value,Common Stock,for $2,000.

F) A) and E)
G) A) and D)

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A corporation sold 14,000 shares of its $10 par value common stock at a cash price of $13 per share.The entry to record this transaction would include:


A) A debit to Contributed Capital in Excess of Par Value,Common Stock,for $42,000.
B) A debit to Cash for $140,000.
C) A credit to Common Stock for $182,000.
D) A credit to Common Stock for $140,000.
E) A credit to Contributed Capital in Excess of Par Value,Common Stock,for $182,000.

F) C) and D)
G) A) and B)

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A corporation had 20,000 shares of $10 par value common stock outstanding on January 10.Later that day the board of directors declared a 30% stock dividend when the market value of each share was $40.The entry to record this dividend is:


A) A corporation had 20,000 shares of $10 par value common stock outstanding on January 10.Later that day the board of directors declared a 30% stock dividend when the market value of each share was $40.The entry to record this dividend is: A) B) C) D) E) No entry is made until the stock is issued
B) A corporation had 20,000 shares of $10 par value common stock outstanding on January 10.Later that day the board of directors declared a 30% stock dividend when the market value of each share was $40.The entry to record this dividend is: A) B) C) D) E) No entry is made until the stock is issued
C) A corporation had 20,000 shares of $10 par value common stock outstanding on January 10.Later that day the board of directors declared a 30% stock dividend when the market value of each share was $40.The entry to record this dividend is: A) B) C) D) E) No entry is made until the stock is issued
D) A corporation had 20,000 shares of $10 par value common stock outstanding on January 10.Later that day the board of directors declared a 30% stock dividend when the market value of each share was $40.The entry to record this dividend is: A) B) C) D) E) No entry is made until the stock is issued
E) No entry is made until the stock is issued

F) All of the above
G) A) and B)

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On August 31,2013,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. On August 31,2013,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. -What is the total amount in the Retained Earnings account immediately after the stock dividend? A) $266,000 B) $532,000 C) $366,000 D) $100,000 E) $0 -What is the total amount in the Retained Earnings account immediately after the stock dividend?


A) $266,000
B) $532,000
C) $366,000
D) $100,000
E) $0

F) A) and E)
G) A) and D)

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A company reports the following stockholders' equity: A company reports the following stockholders' equity: Contributed capital: Compute the (1) number of common shares outstanding and (2) book value per common share. Contributed capital: Compute the (1) number of common shares outstanding and (2) book value per common share.

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(1) Number of common shares ou...

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_____________ is the amount of income earned per share of a company's outstanding common stock.

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A company sold stock for $733,000.The shares had a par value of $6.26 each.After the transaction,the paid-in capital in excess of par common stock account had a balance of $420,000.How many shares did the company sell?

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The stockholders' equity section of a corporation's balance sheet follows: 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. (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.

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A company has 2,000 shares of $1 par value common stock and 200 shares of 5%,$110 par,noncumulative preferred stock outstanding.The balance in Retained Earnings at the beginning of the year was $500,000.Net income for the current year was $300,000.If the company paid a dividend of $2 per share on its common stock,what is the balance in Retained Earnings at the end of the year?


A) $800,000
B) $805,100
C) $794,900
D) $494,900
E) $194,900

F) A) and E)
G) B) and E)

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Prior period adjustments are reported in the:


A) Income statement.
B) Balance sheet.
C) Statement of retained earnings.
D) Statement of cash flows.
E) Notes to the financial statements.

F) All of the above
G) A) and E)

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The date the board of directors votes to pay a dividend is called the:


A) Date of stockholders' meeting
B) Date of declaration
C) Date of record
D) Date of payment
E) Liquidating date

F) D) and E)
G) A) and E)

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A corporation paid a cash dividend of $0.07 per share during the current year.It had 550,000 common shares outstanding at year-end,the current year earnings per share was $3.85 and the stock's year-end market price was $17.50 per share.Calculate the company's dividend yield.

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