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Exam 11: Reporting and Analyzing Equity

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Question 31

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The following selected transactions took place during the current year for a company: (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.

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(a) _TB6947_00_TB694...

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Question 32

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Prior period adjustments to financial statements can result from:

A) Changes in estimates.
B) Using unacceptable accounting principles.
C) Discontinued operations.
D) Changes in tax law.
E) Extraordinary items.

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

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Question 33

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During the current year,Quark Company earned $90,000 in income and paid cash dividends of $10,000 to preferred shareholders.Quark had 12,500 weighted-average shares of common stock outstanding for the year.Calculate the company's earnings per share.

A company's only treasury stock transactions for the current year are as follows: (1) 1,000 shares of its common stock were purchased on June 1 for $40,000; (2) On July 1 it reissued 500 of these shares at $45 per share; (3) On August 1 it reissued the 500 remaining treasury shares at $38 per share. (1) Prepare the journal entries required to record these transactions. (2) Calculate the balance in Paid-in Capital,Treasury Stock,on September 1 assuming its beginning-year balance is zero.

A corporation had the following stock outstanding when the company's board of directors declared a $95,000 cash dividend in the current year: Allocate the cash dividend between the preferred and common stockholders assuming the preferred stock is noncumulative and nonparticipating.

Explain how to compute dividend yield and discuss how it is used in analysis of a company's financial condition.

A company has $100,000 of 10% noncumulative,nonparticipating,preferred stock outstanding and $150,000 of common stock outstanding.In the company's first year of operation,it paid no dividends,but during the second year,it paid cash dividends of $25,000.Compute the dividends to be distributed to (1) preferred shares and (2) common shares.

A corporation received its charter and began business this year.The company is authorized to issue 50,000 shares of $100 par,10%,noncumulative,nonparticipating preferred stock and 500,000 shares of no-par common stock.The following selected transactions occurred during this year: Prepare journal entries to record these transactions.

On August 1,a corporation issued 15,000 shares of no-par common stock in exchange for a tract of land with a market value of $215,000.The common stock has a stated value of $10 per share.Prepare the general journal entry to record this transaction.

On August 31,2013,Gilliam Corporation's common stock is priced at $50 per share before any stock dividend,and the stockholders' equity section of its balance sheet appears as follows.Assume that the company declares and immediately distributes a 35% stock dividend. -What is the total amount in the Retained Earnings account immediately after the stock dividend?

__________________________ is the annual amount of cash dividends distributed to common shareholders relative to the stock's market price.

What is a stock split? How is a stock split different from a stock dividend?

On September 1,a corporation had 50,000 shares of $5 par value common stock and $1,000,000 of retained earnings.On that date,when the market price of the stock is $15 per share,the corporation issues a 2-for-1 stock split.The general journal entry to record this transaction is:

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:

A corporation had stockholders' equity on January 1 as follows: common stock,$5 par value,1,000,000 shares authorized,500,000 shares issued; contributed capital in excess of par value,common stock,$1,000,000; retained earnings,$3,000,000.Prepare journal entries to record the following transactions:

Treasury stock is classified as:

The account used to record a premium on issued stock is titled ______________________________________________.

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

Preferred stock on which the right to receive dividends is forfeited for any year that the dividends are not declared is referred to as:

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 35% stock dividend. -What is the total amount in the Paid-In Capital account immediately after the stock dividend?